# EDGAR Filing Document

**Accession Number:** 0000710826
**File Stem:** 0001193125-23-061284
**Filing Date:** 2023-3
**Character Count:** 4664159
**Document Hash:** 8c4ac19e47f1159123b10ec14e35d022
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-061284.hdr.sgml**: 20230306

**ACCESSION NUMBER**: 0001193125-23-061284

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 33

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230306

**DATE AS OF CHANGE**: 20230306

**EFFECTIVENESS DATE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Brighthouse Funds Trust II
- **CENTRAL INDEX KEY:** 0000710826
- **IRS NUMBER:** 833164113
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-03618
- **FILM NUMBER:** 23708665

**BUSINESS ADDRESS:**
- **STREET 1:** BRIGHTHOUSE INVESTMENT ADVISERS, LLC
- **STREET 2:** 125 HIGH STREET, SUITE 732
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02110
- **BUSINESS PHONE:** 980-949-5121

**MAIL ADDRESS:**
- **STREET 1:** BRIGHTHOUSE INVESTMENT ADVISERS, LLC
- **STREET 2:** 125 HIGH STREET, SUITE 732
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02110

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** METROPOLITAN SERIES FUND
- **DATE OF NAME CHANGE:** 20120430

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** METROPOLITAN SERIES FUND INC
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### Frontier Mid Cap Growth Portfolio (Series ID: S000006500)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017769 | Class A      |  |
| C000017770 | Class B      |  |
| C000017771 | Class E      |  |
| C000030922 | Class D      |  |

### Brighthouse/Wellington Core Equity Opportunities Portfolio (Series ID: S000006501)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017772 | Class A      |  |
| C000017773 | Class B      |  |
| C000017774 | Class E      |  |

### Baillie Gifford International Stock Portfolio (Series ID: S000006502)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017775 | Class A      |  |
| C000017776 | Class B      |  |
| C000017777 | Class E      |  |

### Loomis Sayles Small Cap Growth Portfolio (Series ID: S000006505)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017784 | Class A      |  |
| C000017785 | Class B      |  |
| C000017786 | Class E      |  |

### Brighthouse/Artisan Mid Cap Value Portfolio (Series ID: S000006506)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017787 | Class A      |  |
| C000017788 | Class B      |  |
| C000017789 | Class E      |  |

### MFS Value Portfolio (Series ID: S000006507)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017790 | Class A      |  |
| C000017791 | Class B      |  |
| C000017792 | Class E      |  |
| C000124380 | Class D      |  |

### Jennison Growth Portfolio (Series ID: S000006508)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017793 | Class A      |  |
| C000017794 | Class B      |  |
| C000017795 | Class E      |  |

### MetLife Aggregate Bond Index Portfolio (Series ID: S000006509)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017796 | Class A      |  |
| C000017797 | Class B      |  |
| C000017798 | Class E      |  |
| C000075817 | Class G      |  |

### Loomis Sayles Small Cap Core Portfolio (Series ID: S000006510)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017799 | Class A      |  |
| C000017800 | Class B      |  |
| C000017801 | Class E      |  |

### BlackRock Bond Income Portfolio (Series ID: S000006511)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017802 | Class A      |  |
| C000017803 | Class B      |  |
| C000017804 | Class E      |  |

### Brighthouse Asset Allocation 20 Portfolio (Series ID: S000006513)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017807 | Class A      |  |
| C000017808 | Class B      |  |

### Brighthouse Asset Allocation 40 Portfolio (Series ID: S000006514)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017809 | Class A      |  |
| C000017810 | Class B      |  |

### MetLife Mid Cap Stock Index Portfolio (Series ID: S000006515)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017811 | Class A      |  |
| C000017812 | Class B      |  |
| C000017813 | Class E      |  |
| C000075818 | Class G      |  |

### Brighthouse Asset Allocation 60 Portfolio (Series ID: S000006516)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017814 | Class A      |  |
| C000017815 | Class B      |  |

### Brighthouse Asset Allocation 80 Portfolio (Series ID: S000006517)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017816 | Class A      |  |
| C000017817 | Class B      |  |

### MetLife Stock Index Portfolio (Series ID: S000006518)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017818 | Class A      |  |
| C000017819 | Class B      |  |
| C000017820 | Class E      |  |
| C000075819 | Class D      |  |
| C000150812 | Class G      |  |

### MFS Total Return Portfolio (Series ID: S000006520)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017824 | Class A      |  |
| C000017825 | Class B      |  |
| C000017826 | Class E      |  |
| C000030927 | Class F      |  |

### MetLife MSCI EAFE Index Portfolio (Series ID: S000006521)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017827 | Class A      |  |
| C000017828 | Class B      |  |
| C000017829 | Class E      |  |
| C000075820 | Class G      |  |

### Brighthouse/Wellington Balanced Portfolio (Series ID: S000006522)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017830 | Class A      |  |
| C000017831 | Class B      |  |
| C000017832 | Class E      |  |

### MetLife Russell 2000 Index Portfolio (Series ID: S000006525)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017839 | Class A      |  |
| C000017840 | Class B      |  |
| C000017841 | Class E      |  |
| C000075821 | Class G      |  |

### Western Asset Management Strategic Bond Opportunities Portfolio (Series ID: S000006526)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017842 | Class A      |  |
| C000017843 | Class B      |  |
| C000017844 | Class E      |  |

### Western Asset Management U.S. Government Portfolio (Series ID: S000006527)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017845 | Class A      |  |
| C000017846 | Class B      |  |
| C000017847 | Class E      |  |

### T.Rowe Price Large Cap Growth Portfolio (Series ID: S000006528)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017848 | Class A      |  |
| C000017849 | Class B      |  |
| C000017850 | Class E      |  |

### T.Rowe Price Small Cap Growth Portfolio (Series ID: S000006529)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017851 | Class A      |  |
| C000017852 | Class B      |  |
| C000017853 | Class E      |  |
| C000150813 | Class G      |  |

### BlackRock Capital Appreciation Portfolio (Series ID: S000006533)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017861 | Class A      |  |
| C000017862 | Class B      |  |
| C000017863 | Class E      |  |

### BlackRock Ultra-Short Term Bond Portfolio (Series ID: S000006534)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017864 | Class A      |  |
| C000017865 | Class B      |  |
| C000017866 | Class E      |  |

### Neuberger Berman Genesis Portfolio (Series ID: S000006535)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000017867 | Class A      |  |
| C000017868 | Class B      |  |
| C000017869 | Class E      |  |

### Brighthouse/Dimensional International Small Company Portfolio (Series ID: S000023793)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000069948 | Class A      |  |
| C000069949 | Class B      |  |

### VanEck Global Natural Resources Portfolio (Series ID: S000023794)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000069951 | Class A      |  |
| C000069952 | Class B      |  |

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: 811-3618

------

BRIGHTHOUSE FUNDS TRUST II

------

(Exact name of registrant as specified in charter)

125 High Street, Suite 732

Boston, MA 02110

------

(Address of principal executive offices)(Zip code)

---

| | |
|:---|:---|
| (Name and Address of Agent for Service) | Copy to: |
| Kristi Slavin<br> --------------------------<br> c/o Brighthouse Investment Advisers, LLC<br> 125 High Street, Suite 732<br> Boston, MA 02110 | Brian D. McCabe, Esq.<br> --------------------------<br> Ropes and Gray LLP<br> Prudential Tower<br> 800 Boylston Street<br> Boston, MA 02199 |

---

Registrant's telephone number, including area code: (980) 949-5121

Date of fiscal year end: December 31

Date of reporting period: December 31, 2022

------

**Item 1: Report to Shareholders.** 

(a) The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the "Act"):

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Managed by Baillie Gifford Overseas Limited** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Baillie Gifford International Stock Portfolio returned -28.60%, -28.81%, and -28.74%, respectively. The Portfolio's benchmark, the MSCI All Country World ex-U.S. Index¹, returned -16.00%.

**MARKET ENVIRONMENT / CONDITIONS** 

2022 was a tumultuous and difficult year for long-term, growth investing. The process of normalization from the COVID-19 pandemic inevitably presented challenges for investors, as behavioral changes, policy responses and the speed of reopening varied across the world. Whilst in isolation this would be challenging to navigate, it coincided with increasingly fraught geopolitics, a seismic shift in global monetary policy, Russian-instigated war in Europe and commodity price moves not seen since the 1970s. Any of these factors individually would be significant, but in concert they have underpinned a period of extreme dislocation and led to surging inflation and faster-than-expected rises in interest rates**.**

Against this backdrop, and with time horizons shortening commensurately with uncertainty, there was a marked impact on the valuation of growth equities. Companies whose value today is derived from profits to be delivered further into the future suffered the most, whereas those with more of their value derived from near-term cash flows have performed well. In particular, energy companies and banks experienced windfall profits harvested from rising rates and commodities. We see these as one-off beneficiaries of external events, rather than long-term quality growth businesses.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio significantly underperformed the benchmark in 2022. This was not a surprise given the difficult environment for growth stocks, generally. At the regional level, all areas underperformed. Europe ex-U.K. (a significant overweight position) was the worst relative performer, followed by Developed Asia. In terms of sectors, overweight positions in Industrials and Consumer Discretionary were the largest detractors versus the benchmark, as they were impacted by supply-chain issues and rising energy prices which curtailed consumer demand. It is also worth noting that a lack of exposure to both Energy and Financials (particularly banks) was detrimental to performance. However, on a longer-term view, we are happy with these underweight positions.

At the stock level, the leading detractors were Irish construction materials manufacturer, Kingspan, which suffered as a result of rising interest rates impacting demand for the construction sector, and South American e-commerce business, MercadoLibre, which was the victim of negative sentiment towards many high-growth technology companies. On a more positive note, it was encouraging to see strong performance from Asian insurance company AIA (Hong Kong) and mining company Rio Tinto (U.K.), which was a beneficiary of rising commodity prices.

During the course of 2022, we bought eleven new holdings for the Portfolio and sold out of twelve companies. Each decision was based on company-specific analysis, but the marked write-down in many growth companies certainly offered the opportunity to buy some companies at attractive valuations. The new purchases spanned several different countries from Canada to Japan and several European names. Specific examples include two French businesses. Kering (France) is a luxury goods conglomerate that includes businesses such as Gucci. We believe that Kering is a durable franchise that is well-placed to benefit from the ongoing demand for luxury goods. Another new purchase was cable manufacturer Nexans (France). On first inspection, the company's financial profile does not stand out, but we were attracted by the potential for the business to be a significant beneficiary of the energy transition.

At the end of the year, the largest sector overweight positions in the Portfolio were Industrials (+12.3%), Information Technology (+8.5%), and Consumer Discretionary (+3.8%). The largest underweight positions were Energy (-6.0%), Health Care (-5.6%), and Financials (-4.1%). At the country level, the largest overweights were

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Managed by Baillie Gifford Overseas Limited** 

**Portfolio Manager Commentary\*—(Continued)** 

Ireland (+5.4%), Netherlands (+3.6%), and Hong Kong (+3.5%). The largest underweights were the U.K. (-5.2%), Australia (-4.5%), and Canada (-3.8%).

**Jenny Davis** 

**Tom Walsh** 

**Chris Davies** 

Portfolio Managers

*Baillie Gifford Overseas Limited* 

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

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

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE MSCI ALL COUNTRY WORLD EX-U.S. INDEX**![LOGO](g400082g20g22.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Baillie Gifford International Stock Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -28.60 | -0.23 | 4.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -28.81 | -0.49 | 4.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -28.74 | -0.39 | 4.28 |
| &nbsp;&nbsp;&nbsp;**MSCI All Country World ex-U.S. Index** | -16.00 | 0.88 | 3.80 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **AIA Group, Ltd.** | **3.7** |
| **MercadoLibre, Inc.** | **3.3** |
| **Taiwan Semiconductor Manufacturing Co., Ltd.** | **2.9** |
| **Housing Development Finance Corp., Ltd.** | **2.6** |
| **Nestle S.A.** | **2.4** |
| **Rio Tinto plc** | **2.3** |
| **Samsung Electronics Co., Ltd.** | **2.2** |
| **SAP SE** | **2.2** |
| **Ryanair Holdings plc(ADR)** | **2.2** |
| **Atlas Copco AB- B Shares** | **2.2** |

---

**Top Countries** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Japan** | **13.8** |
| **Germany** | **8.5** |
| **France** | **7.6** |
| **China** | **7.3** |
| **Netherlands** | **6.4** |
| **Ireland** | **5.8** |
| **Switzerland** | **5.6** |
| **Hong Kong** | **5.1** |
| **Denmark** | **4.4** |
| **Sweden** | **4.3** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Baillie Gifford International Stock Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,**<br>**2022** |
|  Class A (a) | Actual | 0.73% | $1000.00 | $1019.40 | $3.72 |
|  | Hypothetical\* | 0.73% | $1000.00 | $1021.53 | $3.72 |
|  Class B (a) | Actual | 0.98% | $1000.00 | $1018.60 | $4.99 |
|  | Hypothetical\* | 0.98% | $1000.00 | $1020.27 | $4.99 |
|  Class E (a) | Actual | 0.88% | $1000.00 | $1018.50 | $4.48 |
|  | Hypothetical\* | 0.88% | $1000.00 | $1020.77 | $4.48 |

---

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

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

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

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—98.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Australia—0.6%** | | |
|  Cochlear, Ltd. | 66940 | $9294297 |
| **Brazil—3.3%** |  |  |
|  MercadoLibre, Inc. (a) | 58393 | 49414492 |
| **Canada—3.9%** |  |  |
|  AbCellera Biologics, Inc. (a) (b) | 591519 | 5992088 |
|  Constellation Software, Inc. | 12767 | 19932738 |
|  Ritchie Bros. Auctioneers, Inc. | 165293 | 9558894 |
|  Shopify, Inc. - Class A (a) | 310599 | 10780891 |
|  Topicus.com, Inc. (a) | 252413 | 13252615 |
|  |  | 59517226 |
| **China—7.3%** |  |  |
|  Alibaba Group Holding, Ltd. (a) | 1172272 | 12943248 |
|  Futu Holdings, Ltd. (ADR) (a) | 117130 | 4761335 |
|  Meituan - Class B (a) | 893600 | 19758730 |
|  Ping An Insurance Group Co. of China, Ltd. - Class H | 2142500 | 14140911 |
|  Prosus NV (a) | 184798 | 12687390 |
|  Tencent Holdings, Ltd. | 539700 | 22938440 |
|  Tencent Music Entertainment Group (ADR) (a) | 2045491 | 16936665 |
|  Wuxi Biologics Cayman, Inc. (a) | 777500 | 5968919 |
|  |  | 110135638 |
| **Denmark—4.4%** |  |  |
|  Ambu A/S - Class B (a) (b) | 485959 | 6165877 |
|  Chr Hansen Holding A/S | 220932 | 15927593 |
|  DSV A/S | 153981 | 24422326 |
|  Novozymes A/S - B Shares | 396690 | 20144951 |
|  |  | 66660747 |
| **Finland—1.5%** |  |  |
|  Kone Oyj - Class B | 425489 | 22038796 |
| **France—7.6%** |  |  |
|  Danone S.A. | 452184 | 23822814 |
|  Dassault Systemes SE | 645998 | 23299257 |
|  Edenred | 514858 | 28015557 |
|  Kering S.A. | 29368 | 15030027 |
|  Nexans S.A. | 100686 | 9140925 |
|  Sartorius Stedim Biotech | 48510 | 15804282 |
|  |  | 115112862 |
| **Germany—8.5%** |  |  |
|  BioNTech SE (ADR) | 94137 | 14141260 |
|  Deutsche Boerse AG | 180337 | 31115484 |
|  Rational AG | 37280 | 22095006 |
|  SAP SE | 327006 | 33746824 |
|  Scout24 SE | 539266 | 27094274 |
|  |  | 128192848 |
| **Hong Kong—5.1%** |  |  |
|  AIA Group, Ltd. | 5069000 | 55845193 |
|  Hong Kong Exchanges & Clearing, Ltd. | 488700 | 21119240 |
|  |  | 76964433 |
| **India—3.5%** |  |  |
|  Housing Development Finance Corp., Ltd. | 1251377 | 39911397 |
|  ICICI Lombard General Insurance Co., Ltd. | 906951 | 13555219 |
|  |  | 53466616 |
| **Ireland—5.8%** |  |  |
|  CRH plc | 784992 | 31174388 |
|  Kingspan Group plc | 443329 | 23870260 |
|  Ryanair Holdings plc (ADR) (a) | 448680 | 33543317 |
|  |  | 88587965 |
| **Italy—1.7%** |  |  |
|  FinecoBank Banca Fineco S.p.A. | 1516841 | 25278976 |
| **Japan—13.8%** |  |  |
|  Denso Corp. | 443100 | 21721468 |
|  FANUC Corp. | 149400 | 22296740 |
|  Japan Exchange Group, Inc. | 1078100 | 15581136 |
|  Keyence Corp. | 40800 | 15973391 |
|  MonotaRO Co., Ltd. | 1248300 | 17652215 |
|  Nidec Corp. | 252900 | 13170267 |
|  Nintendo Co., Ltd. | 380000 | 15912730 |
|  Shimano, Inc. (b) | 110300 | 17573863 |
|  Shiseido Co., Ltd. (b) | 501400 | 24709307 |
|  SMC Corp. | 42300 | 17902612 |
|  Sony Group Corp. | 349200 | 26628563 |
|  |  | 209122292 |
| **Netherlands—6.4%** |  |  |
|  Adyen NV (a) | 13096 | 18122458 |
|  ASML Holding NV | 53601 | 29014379 |
|  EXOR NV (a) | 197403 | 14409824 |
|  IMCD NV | 229724 | 32812777 |
|  Just Eat Takeaway (a) | 114249 | 2405687 |
|  |  | 96765125 |
| **Norway—0.6%** |  |  |
|  Aker Carbon Capture ASA (a) | 7756327 | 9161459 |
| **Panama—1.0%** |  |  |
|  Copa Holdings S.A. - Class A (a) | 184035 | 15306191 |
| **Russia—0.0%** |  |  |
|  Magnit PJSC (a) (c) (d) | 124832 | 0 |
|  Magnit PJSC (GDR) (a) (c) (d) | 3 | 0 |
|  MMC Norilsk Nickel PJSC (a) (c) (d) | 39210 | 0 |
|  MMC Norilsk Nickel PJSC (ADR) (a) (c) (d) | 7 | 0 |
|  |  | 0 |
| **South Africa—1.3%** |  |  |
|  Discovery, Ltd. (a) | 2637007 | 19147418 |
| **South Korea—3.1%** |  |  |
|  Coupang, Inc. (a) | 852884 | 12545924 |
|  Samsung Electronics Co., Ltd. | 771212 | 34008974 |
|  |  | 46554898 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** | **Value** |
| **Spain—1.4%** | | | |
|  Amadeus IT Group S.A. (a) | 414124 | $| 21356394 |
| **Sweden—4.3%** |  |  |  |
|  Atlas Copco AB - B Shares | 3102953 |  | 33153047 |
|  Epiroc AB - B Shares | 1549094 |  | 24969454 |
|  MIPS AB | 160937 |  | 6663943 |
|  |  |  | 64786444 |
| **Switzerland—5.6%** |  |  |  |
|  Cie Financiere Richemont S.A. - Class A | 247451 |  | 32021555 |
|  Kuehne & Nagel International AG | 52083 |  | 12103250 |
|  Nestle S.A. | 309779 |  | 35774977 |
|  Wizz Air Holdings plc (a) | 221452 |  | 5072614 |
|  |  |  | 84972396 |
| **Taiwan—3.3%** |  |  |  |
|  Sea, Ltd. (ADR) (a) | 117904 |  | 6134545 |
|  Taiwan Semiconductor Manufacturing Co., Ltd. | 3059000 |  | 44583850 |
|  |  |  | 50718395 |
| **United Kingdom—4.3%** |  |  |  |
|  Experian plc | 693795 |  | 23619263 |
|  Oxford Nanopore Technologies plc (a) | 2290219 |  | 6835067 |
|  Rio Tinto plc | 488779 |  | 34295771 |
|  |  |  | 64750101 |
| **United States—0.5%** |  |  |  |
|  Spotify Technology S.A. (a) | 103711 |  | 8187983 |
|  Total Common Stocks <br>(Cost $1,453,544,191) |  |  | 1495493992 |
| **Short-Term Investment—0.7%** |  |  |  |
| **Repurchase Agreement—0.7%** |  |  |  |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $9,998,550; collateralized by U.S. Treasury Bond at 1.375%, maturing 08/15/50, with a market value of $10,196,518. | 9996551 |  | 9996551 |
|  Total Short-Term Investments <br>(Cost $9,996,551) |  |  | 9996551 |
| **Securities Lending Reinvestments (e)—3.0%** | **Securities Lending Reinvestments (e)—3.0%** | **Securities Lending Reinvestments (e)—3.0%** | **Securities Lending Reinvestments (e)—3.0%** |
| **Repurchase Agreements—1.3%** |  |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $5,084,012; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $5,183,274. | 5081641 |  | 5081641 |
| **Repurchase Agreements—(Continued)** |  |  |  |
|  Cantor Fitzgerald & Co. <br>Repurchase Agreement dated 12/30/22 at 4.300%, due on 01/03/23 with a maturity value of $3,001,433; collateralized by U.S. Government Agency Obligations with rates ranging from 1.500% - 7.500%, maturity dates ranging from 01/01/23 - 07/20/71, and an aggregate market value of $3,060,000. | 3000000 |  | 3000000 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $5,002,361; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $5,102,408. | 5000000 |  | 5000000 |
|  National Bank Financial Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $500,240; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $511,935. | 500000 |  | 500000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $1,000,840; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $1,022,378. | 1000000 |  | 1000000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $700,331; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $715,264. | 700000 |  | 700000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $500,244; collateralized by various Common Stock with an aggregate market value of $556,424. | 500000 |  | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $1,000,490; collateralized by various Common Stock with an aggregate market value of $1,112,951. | 1000000 |  | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $400,344; collateralized by various Common Stock with an aggregate market value of $445,277. | 400000 |  | 400000 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $3,001,467; collateralized by various Common Stock with an aggregate market value of $3,328,284. | 3000000 |  | 3000000 |
|  |  |  | 20181641 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (e)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Mutual Funds — 1.7%** | | |
|  Allspring Government Money Market Fund, Select Class 4.090% (f) | 7000000 | $7000000 |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (f) | 1000000 | 1000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (f) | 7000000 | 7000000 |
|  HSBC U.S. Government Money Market Fund, Class I 4.130% (f) | 2000000 | 2000000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (f) | 1000000 | 1000000 |
|  STIT-Government & Agency Portfolio, Institutional Class 4.220% (f) | 7000000 | 7000000 |
|  |  | 25000000 |
|  Total Securities Lending Reinvestments <br>(Cost $45,181,641) |  | 45181641 |
|  Total Investments—102.5% <br>(Cost $1,508,722,383) |  | 1550672184 |
|  Other assets and liabilities (net)—(2.5)% |  | (37106187) |
| **Net Assets—100.0%** |  | $1513565997 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $47,720,363 and the collateral received consisted of cash in the amount of $45,181,641 and non-cash collateral with a value of $4,429,486. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third- party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(d) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent less than 0.05% of net assets.

(e) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(f) The rate shown represents the annualized seven-day yield as of December 31, 2022.

---

| | |
|:---|:---|
| **Ten Largest Industries as of<br>December 31, 2022 (Unaudited)** | **% of<br>Net Assets** |
|  Machinery | 9.4 |
|  Internet & Direct Marketing Retail | 7.2 |
|  Insurance | 6.8 |
|  Software | 6.0 |
|  IT Services | 5.2 |
|  Semiconductors & Semiconductor Equipment | 4.9 |
|  Capital Markets | 4.8 |
|  Food Products | 3.9 |
|  Airlines | 3.6 |
|  Trading Companies & Distributors | 3.3 |

---

**Glossary of Abbreviations** 

Other Abbreviations

------

(ADR)— American Depositary Receipt <br> (GDR)— Global Depositary Receipt

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Australia | $— | $9294297 | $— | $9294297 |
| &nbsp;&nbsp;&nbsp;&nbsp; Brazil | 49414492 |  |  | 49414492 |
| &nbsp;&nbsp;&nbsp;&nbsp; Canada | 59517226 |  |  | 59517226 |
| &nbsp;&nbsp;&nbsp;&nbsp; China | 21698000 | 88437638 |  | 110135638 |
| &nbsp;&nbsp;&nbsp;&nbsp; Denmark |  | 66660747 |  | 66660747 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finland |  | 22038796 |  | 22038796 |
| &nbsp;&nbsp;&nbsp;&nbsp; France |  | 115112862 |  | 115112862 |
| &nbsp;&nbsp;&nbsp;&nbsp; Germany | 14141260 | 114051588 |  | 128192848 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hong Kong |  | 76964433 |  | 76964433 |
| &nbsp;&nbsp;&nbsp;&nbsp; India |  | 53466616 |  | 53466616 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ireland | 33543317 | 55044648 |  | 88587965 |
| &nbsp;&nbsp;&nbsp;&nbsp; Italy |  | 25278976 |  | 25278976 |
| &nbsp;&nbsp;&nbsp;&nbsp; Japan |  | 209122292 |  | 209122292 |
| &nbsp;&nbsp;&nbsp;&nbsp; Netherlands |  | 96765125 |  | 96765125 |
| &nbsp;&nbsp;&nbsp;&nbsp; Norway |  | 9161459 |  | 9161459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Panama | 15306191 |  |  | 15306191 |
| &nbsp;&nbsp;&nbsp;&nbsp; Russia |  |  | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; South Africa |  | 19147418 |  | 19147418 |
| &nbsp;&nbsp;&nbsp;&nbsp; South Korea | 12545924 | 34008974 |  | 46554898 |
| &nbsp;&nbsp;&nbsp;&nbsp; Spain |  | 21356394 |  | 21356394 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sweden |  | 64786444 |  | 64786444 |
| &nbsp;&nbsp;&nbsp;&nbsp; Switzerland |  | 84972396 |  | 84972396 |
| &nbsp;&nbsp;&nbsp;&nbsp; Taiwan | 6134545 | 44583850 |  | 50718395 |
| &nbsp;&nbsp;&nbsp;&nbsp; United Kingdom |  | 64750101 |  | 64750101 |
| &nbsp;&nbsp;&nbsp;&nbsp; United States | 8187983 |  |  | 8187983 |
|  Total Common Stocks | 220488938 | 1275005054 | 0 | 1495493992 |
|  Total Short-Term Investment\* |  | 9996551 |  | 9996551 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 20181641 |  | 20181641 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 25000000 |  |  | 25000000 |
|  Total Securities Lending Reinvestments | 25000000 | 20181641 |  | 45181641 |
|  Total Investments | $245488938 | $1305183246 | $0 | $1550672184 |
|  Collateral for Securities Loaned (Liability) | $— | $(45181641) | $— | $(45181641) |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

During the year ended December 31, 2022, transfers into Level 3 in the amount of $21,833,902 were due to trading halts on the securities' respective exchange which resulted in the lack of observable inputs.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1550672184 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (c) | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 9288991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 21493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 2645924 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 5638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1562634253 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 45181641 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 154962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 1438593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign taxes | 838753 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 904696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 54843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 176114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 318654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 49068256 |
|  **Net Assets** | $1513565997 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1468628146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) (d) | 44937851 |
|  **Net Assets** | $1513565997 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1259701519 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 241690090 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 12174388 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 140975435 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 27655697 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1381935 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $8.94 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 8.74 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 8.81 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $1,508,722,383.

(b) Includes securities loaned at value of $47,720,363.

(c) Identified cost of cash denominated in foreign currencies was $23.

(d) Includes foreign capital gains tax of $838,753.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $24064442 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-cash dividend | 1843220 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 95733 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 234630 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 26238025 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 12603982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 71195 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 422459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 647378 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 19958 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 52592 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 67666 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 14256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 99837 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 14053978 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (1865796) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 12188182 |
|  **Net Investment Income** | 14049843 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments (b) | (6385520) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (773521) |
|  Net realized gain (loss) | (7159041) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments (c) | (566825508) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (27030) |
|  Net change in unrealized appreciation (depreciation) | (566852538) |
|  Net realized and unrealized gain (loss) | (574011579) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(559961736) |

---

(a) Net of foreign withholding taxes of $2,858,534.

(b) Net of foreign capital gains tax of $22,320.

(c) Includes change in foreign capital gains tax of $82,322.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $14049843 | $18118814 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (7159041) | 143402806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (566852538) | (174357602) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (559961736) | (12835982) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (134239803) | (176369559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (26054352) | (36828338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (1305016) | (2048164) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (161599171) | (215246061) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 284393897 | 124091123 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (437167010) | (103990920) |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1950733007 | 2054723927 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $1513565997 | $1950733007 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 17224110 | $168503659 | 3247105 | $51387750 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 15202696 | 134239803 | 11789409 | 176369559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (5820248) | (54499542) | (7216606) | (116681613) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 26606558 | $248243920 | 7819908 | $111075696 |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 3446318 | $34824334 | 2394968 | $35965946 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3015550 | 26054352 | 2510452 | 36828338 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2622705) | (25523509) | (3886855) | (59760403) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3839163 | $35355177 | 1018565 | $13033881 |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 140004 | $1326914 | 104251 | $1515164 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 149830 | 1305016 | 138671 | 2048164 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (188517) | (1837130) | (236565) | (3581782) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 101317 | $794800 | 6357 | $(18454) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $284393897 |  | $124091123 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $14.04 | $15.78 | $13.58 | $11.02 | $13.43 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.09 | 0.14 | 0.09 | 0.25 | 0.16 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (4.12) | (0.16) | 3.18 | 3.24 | (2.42) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (4.03) | (0.02) | 3.27 | 3.49 | (2.26) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.12) | (0.15) | (0.27) | (0.17) | (0.15) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.95) | (1.57) | (0.80) | (0.76) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.07) | (1.72) | (1.07) | (0.93) | (0.15) |
|  **Net Asset Value, End of Period** | $8.94 | $14.04 | $15.78 | $13.58 | $11.02 |
|  **Total Return (%)** (b) | (28.60) | (0.76) | 26.58 | 32.82 | (17.01) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.85 | 0.84 | 0.84 | 0.84 | 0.85 |
|  Net ratio of expenses to average net assets (%) (c) | 0.73 | 0.71 | 0.72 | 0.72 | 0.72 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.93 | 0.93 | 0.67 | 2.02 | 1.28 |
|  Portfolio turnover rate (%) | 18 | 14 | 20 | 12 | 23 |
|  Net assets, end of period (in millions) | $1259.7 | $1605.6 | $1681.6 | $1598.2 | $1407.8 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.75 | $15.49 | $13.35 | $10.85 | $13.22 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.07 | 0.10 | 0.05 | 0.22 | 0.14 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (4.04) | (0.15) | 3.13 | 3.18 | (2.39) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.97) | (0.05) | 3.18 | 3.40 | (2.25) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.09) | (0.12) | (0.24) | (0.14) | (0.12) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.95) | (1.57) | (0.80) | (0.76) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.04) | (1.69) | (1.04) | (0.90) | (0.12) |
|  **Net Asset Value, End of Period** | $8.74 | $13.75 | $15.49 | $13.35 | $10.85 |
|  **Total Return (%)** (b) | (28.81) | (0.99) | 26.26 | 32.41 | (17.19) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.10 | 1.09 | 1.09 | 1.09 | 1.10 |
|  Net ratio of expenses to average net assets (%) (c) | 0.98 | 0.96 | 0.97 | 0.97 | 0.97 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.69 | 0.69 | 0.41 | 1.76 | 1.09 |
|  Portfolio turnover rate (%) | 18 | 14 | 20 | 12 | 23 |
|  Net assets, end of period (in millions) | $241.7 | $327.4 | $353.2 | $315.3 | $277.6 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.85 | $15.59 | $13.43 | $10.91 | $13.29 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.08 | 0.12 | 0.07 | 0.23 | 0.15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (4.07) | (0.16) | 3.14 | 3.20 | (2.40) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.99) | (0.04) | 3.21 | 3.43 | (2.25) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.10) | (0.13) | (0.25) | (0.15) | (0.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.95) | (1.57) | (0.80) | (0.76) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.05) | (1.70) | (1.05) | (0.91) | (0.13) |
|  **Net Asset Value, End of Period** | $8.81 | $13.85 | $15.59 | $13.43 | $10.91 |
|  **Total Return (%)** (b) | (28.74) | (0.91) | 26.37 | 32.56 | (17.09) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.00 | 0.99 | 0.99 | 0.99 | 1.00 |
|  Net ratio of expenses to average net assets (%) (c) | 0.88 | 0.86 | 0.87 | 0.87 | 0.87 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.79 | 0.79 | 0.50 | 1.87 | 1.19 |
|  Portfolio turnover rate (%) | 18 | 14 | 20 | 12 | 23 |
|  Net assets, end of period (in millions) | $12.2 | $17.7 | $19.9 | $18.2 | $16.2 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

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

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

In consideration of recent decisions rendered by European courts, the Portfolio has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union ("EU") countries. These filings are subject to various administrative and judicial

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

proceedings within these countries. During the year ended December 31, 2022, the Portfolio received EU tax reclaim payments in the amount of $408,959 that were not previously accrued for due to uncertainty of collectability. Such amount is included in dividends on the Statement of Operations. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $9,996,551. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $20,181,641. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non- standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

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

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

*China Investment Risk:* On June 2, 2021, an Executive Order (the "Order") was issued prohibiting investment activity by U.S. persons, which includes the Portfolio, in relation to certain companies determined by the U.S. Secretary of the Treasury and the U.S. Secretary of Defense to (i) be operating or have been previously operating in the defense and related material sector or the surveillance technology sector (collectively, "Defense Sectors") of the economy of China; or (ii) own or control, or to be owned or controlled by, directly or indirectly, a person or entity who operates or has operated in any of the Defense Sectors (each, a "Chinese Military Company, " and together, the "Chinese Military Companies"). Each Chinese Military Company is included on the Non-SDN Chinese Military-Industrial Complex Companies List ("Non-SDN CMIC List") administered by the Office of Foreign Assets Control within the U.S. Department of the Treasury. The Order supersedes similar executive orders previously issued on November 12, 2020 and January 13, 2021 related to investments in "Communist Chinese Military Companies." Beginning August 2, 2021 for Chinese Military Companies designated to the Non-SDN CMIC List in connection with the Order (or 60 days after an entity is newly-designated as a Chinese Military Company), all transactions in public securities, or any securities that are derivative of, or are designed to provide investment exposure to such securities, of any of the Chinese Military Companies (the "Sanctioned Securities") are prohibited. The Order contained a limited exception for transactions made solely for the purpose of divestment through June 3, 2022 for securities designated in connection with the Order, and 365 days after designation for other companies. The Portfolio's holdings in the Sanctioned Securities may adversely impact the Portfolio's performance. The extent of the impact will depend on future developments, including the Portfolio's ability to sell the Sanctioned Securities, uncertainties on valuation of the Sanctioned Securities, modifications to the Order and/or interpretations thereof (including which companies are considered Chinese Military Companies), and the duration of the Order, all of which are highly uncertain and cannot be predicted.

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

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $423643151 | $0 | $278792751 |

---

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average daily net assets** |
| $12603982 | 0.860% | Of the first $500 million |
|  | 0.800% | Of the next $500 million |
|  | 0.750% | On amounts in excess of $1 billion |

---

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

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average daily net assets** |
| 0.080% | On amounts over $156.25 million and under $400 million |
| 0.180% | Of the next $100 million |
| 0.120% | Of the next to $400 million |
| 0.150% | On amounts in excess of $900 million |

---

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waiver in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1519629292 |
|  Gross unrealized appreciation | 264335388 |
|  Gross unrealized (depreciation) | (233292496) |
|  Net unrealized appreciation (depreciation) | $31042892 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $26355135 | $31985924 | $135244036 | $183260137 | $161599171 | $215246061 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital<br>Losses** | **Total** |
| $18255080 | $– $| 30185174 | $(3326288) | $45113966 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $3,326,288.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

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

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Baillie Gifford International Stock Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Baillie Gifford International Stock Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

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

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the MSCI All Country World ex-U.S. Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Baillie Gifford International Stock Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Managed By BlackRock Advisors, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the BlackRock Bond Income Portfolio returned -14.15%, -14.36%, and -14.27%, respectively. The Portfolio's benchmark, the Bloomberg U.S. Aggregate Bond Index¹, returned -13.01%.

**MARKET ENVIRONMENT / CONDITIONS** 

At the beginning of 2022, investors focused on the tensions between Russia and Ukraine and on the U.S. Federal Reserve's (the "Fed") liftoff. The past year was one defined by central banks moving interest rates higher as inflation ran at its highest level in decades. As the Fed and other central banks raised rates, interest rates across the curve moved materially higher, curves inverted, and risks assets performed poorly. The market did, however, price inflation expectations higher over the period given the elevated levels of realized inflation. Following the extensive rate hikes of the Fed, inflationary pressures were thought to have peaked. This is also due to healing supply chains. Macroeconomic volatility and uncertainty during the year was only reinforced by major global events contributing to the turbulence in the markets in 2022. Energy prices underwent shocks across the globe, and particularly in Europe, driven by the war in Ukraine leading to soaring prices. To dampen the burden of these high energy costs, the European Union energy ministers settled on a gas price cap of €180 per megawatt hour. For the U.K., the Bank of England followed the European Central Bank and raised rates onset by the U.K. Gilt crisis seen earlier this fall. Meanwhile, the Bank of Japan shocked markets during their announcement to increase the range of the Japanese 10-year note, which may drive global long-term bond yields into the new year as loosening in their yield curve control led to a selloff.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio underperformed the benchmark for the period. The largest detractors to performance included our securitized asset allocation and selection, our allocation to high yield credit, as well as our emerging market debt selection, as risk assets remained volatile throughout the year. The main contributors to performance over the year were the Portfolio's duration and yield curve positioning as we generally held an underweight duration position, which contributed as rates moved higher. The Portfolio's U.S. Investment Grade ("IG") credit positioning also contributed to performance. The Portfolio held these allocations through the year as we favored owning high-quality exposures on spread. Non-U.S. interest rate positioning and Treasury Inflation Protracted Security ("TIPS") allocation also contributed to performance.

The Portfolio began the period with a defensive stance due to the volatile macro regime. From a duration perspective, the Portfolio was generally underweight over the year as we recognized duration would not serve as an effective hedge versus risk assets. As we entered the back half of 2022, we moved to a more modest underweight in duration with a preference for the front- and back-end of the yield curve given attractive levels from a risk/reward perspective. We expect to see elevated rate volatility start to moderate over the medium-term as inflation comes down and we get more clarity on the Fed's policy path. We hold a short position to Japanese long term government bonds, as we remain cautious of potential hawkish policy shift. The Portfolio ended the year with an effective duration of 6.21 years, 0.11 years underweight relative to the benchmark index.

The Portfolio increased risk in high quality fixed income as the opportunity set repriced. We held the agency mortgage position as valuations continued to be attractive from a spread perspective. The Portfolio also held an overweight to IG credit and strategically tilted further into front-end assets as yields remained attractive. We also tactically added to TIPS earlier in the year, due to attractive valuations and hedging benefits, and as the market underappreciated the potential of higher inflation. In addition, the Portfolio continues to hold a core allocation to structured products, namely high-quality assets with strong levels of protection. The team also modestly trimmed the allocations to high yield credit and emerging market debt as we remain cautious in these sectors.

The Portfolio held derivatives during the period as a part of our investment strategy. Derivatives are used as a means to manage risk and/or take outright views on interest rates, credit risk and/or foreign

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Managed By BlackRock Advisors, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

exchange positions in the Portfolio. During the period, derivatives held in the Portfolio performed as expected and did not have significant impact on performance.

**Rick Rieder** 

**Bob Miller^** 

**Chi Chen^** 

**David Rogal** 

Portfolio Managers

*BlackRock Advisors, LLC* 

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

^ Bob Miller announced his plans to retire from BlackRock in March 2023. Chi Chen was added to the portfolio management team upon the announcement in December 2022.

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

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG U.S. AGGREGATE BOND INDEX**![LOGO](g400082g67h81.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**BlackRock Bond Income Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -14.15 | 0.32 | 1.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -14.36 | 0.06 | 1.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -14.27 | 0.16 | 1.39 |
| &nbsp;&nbsp;&nbsp;**Bloomberg U.S. Aggregate Bond Index** | -13.01 | 0.02 | 1.06 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Treasury & Government Agencies** | **45.8** |
| **Corporate Bonds & Notes** | **26.2** |
| **Asset-Backed Securities** | **11.6** |
| **Mortgage-Backed Securities** | **6.2** |
| **Floating Rate Loans** | **1.5** |
| **Foreign Government** | **0.9** |
| **Municipals** | **0.7** |
| **Common Stocks** | **0.3** |
| **Purchased Options** | **0.3** |
| **Preferred Stocks** | **0.1** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **BlackRock Bond Income Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.38% | $1000.00 | $970.50 | $1.89 |
|  | Hypothetical\* | 0.38% | $1000.00 | $1023.29 | $1.94 |
|  Class B (a) | Actual | 0.63% | $1000.00 | $969.20 | $3.13 |
|  | Hypothetical\* | 0.63% | $1000.00 | $1022.03 | $3.21 |
|  Class E (a) | Actual | 0.53% | $1000.00 | $969.70 | $2.63 |
|  | Hypothetical\* | 0.53% | $1000.00 | $1022.53 | $2.70 |

---

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

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

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—45.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—29.2%** | **Agency Sponsored Mortgage - Backed—29.2%** | **Agency Sponsored Mortgage - Backed—29.2%** |
| Fannie Mae 15 Yr. Pool | Fannie Mae 15 Yr. Pool | Fannie Mae 15 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/31 | 91637 | $83352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/31 | 1170151 | 1063829 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/31 | 126807 | 115332 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/32 | 835746 | 760172 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/37 | 1053617 | 939755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/27 | 80804 | 77078 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/28 | 10501 | 9992 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/28 | 27887 | 26484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/28 | 82490 | 78108 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/30 | 448747 | 418564 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/30 | 48301 | 45548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/30 | 86581 | 81187 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/30 | 304356 | 285367 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/30 | 985970 | 925362 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/30 | 593897 | 556840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/30 | 1115315 | 1045722 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/31 | 51656 | 49196 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/31 | 340232 | 318145 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/31 | 191739 | 179300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/31 | 26088 | 24343 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/31 | 1638467 | 1532109 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/31 | 1032255 | 965249 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/32 | 48618 | 45461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/32 | 183427 | 171510 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/32 | 1143293 | 1068972 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/33 | 1986872 | 1862918 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/28 | 59272 | 56889 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/28 | 70708 | 67821 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/28 | 145055 | 139026 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/28 | 1018484 | 977246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/28 | 246764 | 236857 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/29 | 118327 | 113188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/29 | 510908 | 491284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/29 | 714096 | 686657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/29 | 625457 | 600755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/29 | 191074 | 183736 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/30 | 402706 | 387223 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/30 | 329096 | 314828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/30 | 545097 | 522422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/30 | 399523 | 382054 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/30 | 1725746 | 1650735 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/30 | 468848 | 448528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/31 | 1694499 | 1616694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/31 | 210150 | 201027 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/32 | 364420 | 348572 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/28 | 133172 | 130620 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/28 | 1078793 | 1058655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/28 | 1086025 | 1048651 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/29 | 1267992 | 1227920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/29 | 259938 | 250674 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/29 | 965732 | 946923 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/29 | 339409 | 333100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/29 | 74786 | 71990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/30 | 279925 | 273365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/32 | 110229 | 106552 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Fannie Mae 15 Yr. Pool | Fannie Mae 15 Yr. Pool | Fannie Mae 15 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/33 | 68762 | 66463 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/33 | 2597671 | 2544841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/25 | 36853 | 36765 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/25 | 10102 | 10083 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/25 | 19200 | 19123 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/26 | 227100 | 226365 |
| Fannie Mae 20 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 11/01/41 | 20058329 | 16409114 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 12/01/41 | 10246155 | 8382045 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/41 | 1459361 | 1230156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/42 | 745135 | 628094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/42 | 7181309 | 6053283 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/42 | 1108674 | 934541 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/36 | 47715 | 44266 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/36 | 544166 | 504811 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/36 | 876174 | 812805 |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 10/01/50 | 2438834 | 1884264 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 11/01/50 | 2115158 | 1634181 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 03/01/51 | 2825883 | 2181955 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/50 | 1679718 | 1374235 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/50 | 2140924 | 1755131 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/50 | 407589 | 333067 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/50 | 2273832 | 1869368 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 1733240 | 1415782 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/51 | 1747662 | 1437155 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 3376844 | 2780302 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 12781750 | 10438716 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/51 | 22026275 | 17996446 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/51 | 9550281 | 7826012 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/52 | 7788113 | 6415212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/52 | 22954332 | 18768588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/52 | 4957392 | 4067414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/50 | 9480748 | 8155868 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/50 | 6892416 | 5926796 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/50 | 2399616 | 2078765 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/51 | 466675 | 400822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 5821596 | 4967229 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/51 | 1161560 | 1000758 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 30989429 | 26505603 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/52 | 6477474 | 5545317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/43 | 4461815 | 4059308 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/43 | 2606878 | 2371686 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/43 | 1401659 | 1274485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/43 | 46091 | 41937 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/46 | 26956 | 24186 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/46 | 37032 | 33201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/46 | 1524108 | 1364162 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/47 | 375224 | 335853 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/47 | 1570142 | 1403444 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/50 | 549292 | 490317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/50 | 2150226 | 1908674 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/51 | 2632807 | 2325943 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/51 | 1178866 | 1044307 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/52 | 379728 | 336936 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/52 | 602227 | $531350 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/42 | 230064 | 215356 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/42 | 156073 | 146099 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/42 | 19497 | 18238 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/42 | 40002 | 37445 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/42 | 48631 | 45516 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/45 | 1579189 | 1478145 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/47 | 730291 | 677936 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/47 | 497650 | 460614 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/47 | 499309 | 461810 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/48 | 1492484 | 1385930 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/48 | 229523 | 212689 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/48 | 1296093 | 1200892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/48 | 880209 | 822640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/49 | 8498609 | 7880521 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/51 | 20259028 | 18641892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/33 | 356401 | 342324 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/42 | 454396 | 436366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/42 | 754208 | 720927 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/42 | 164632 | 158103 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/46 | 160817 | 153704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/47 | 508042 | 487153 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/47 | 336306 | 321241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/47 | 28769 | 27463 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/47 | 227940 | 217553 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/48 | 226244 | 215828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/48 | 51909 | 49626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/48 | 58429 | 55794 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/48 | 42654 | 40757 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/48 | 42923 | 40836 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/48 | 641852 | 615318 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/48 | 282843 | 269493 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/48 | 124999 | 119186 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/49 | 1137345 | 1084463 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/50 | 524585 | 495386 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/50 | 270112 | 255759 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/50 | 470119 | 448083 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/50 | 638895 | 604176 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/50 | 52121 | 49307 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/51 | 3479941 | 3320570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/51 | 2738208 | 2597009 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/51 | 6092373 | 5809246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/51 | 6334243 | 5995422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/52 | 591398 | 560246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/39 | 382566 | 377868 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/39 | 324806 | 321990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/40 | 15443 | 15309 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/40 | 31208 | 30918 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/40 | 70656 | 70043 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/40 | 67493 | 66908 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/40 | 144239 | 142989 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/40 | 285652 | 283175 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/41 | 64162 | 63606 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/41 | 286337 | 283852 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/41 | 76551 | 75887 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/42 | 60267 | 59745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/42 | 365681 | 362511 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/43 | 325969 | 320217 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/43 | 578522 | 568316 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/43 | 1471290 | 1449241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/43 | 630295 | 619178 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/44 | 525354 | 516189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/44 | 2023364 | 1987669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/45 | 602923 | 593405 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/45 | 294531 | 290774 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/45 | 1015169 | 998110 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/45 | 405265 | 398117 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/46 | 1947449 | 1925978 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/46 | 339962 | 336213 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/47 | 33601 | 32871 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/47 | 245666 | 240920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/47 | 1211802 | 1188849 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/47 | 41936 | 41140 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/48 | 1183327 | 1161469 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/48 | 68852 | 67580 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/01/48 | 100349 | 98342 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/48 | 648533 | 642605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/48 | 5538707 | 5462901 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/48 | 113760 | 111817 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/48 | 1192352 | 1176866 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/48 | 740143 | 725252 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/49 | 6358261 | 6330126 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/49 | 5774551 | 5749000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/52 | 528577 | 508826 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/32 | 1987 | 1995 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/35 | 83571 | 84930 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/01/39 | 3519332 | 3578749 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/41 | 5162 | 5123 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/41 | 104789 | 106113 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/41 | 116709 | 118183 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/42 | 45475 | 45340 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/01/32 | 380911 | 390997 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/32 | 67105 | 68895 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/33 | 233320 | 239185 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/33 | 90495 | 93048 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 05/01/34 | 754435 | 777797 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/01/37 | 784497 | 809292 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/01/38 | 142176 | 146947 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/01/38 | 74062 | 76802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/38 | 44323 | 44442 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/38 | 79024 | 79287 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/39 | 133342 | 138268 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/01/39 | 95594 | 96930 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/39 | 181290 | 187780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/40 | 17698 | 18171 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/41 | 102191 | 103476 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/34 | 90120 | 93040 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/34 | 65821 | 68086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/35 | 1050139 | 1085989 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/36 | 144641 | 150088 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/38 | 175481 | $182047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/01/38 | 74411 | 77685 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/01/38 | 211029 | 219971 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/38 | 243486 | 253474 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/38 | 89723 | 93598 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/40 | 805966 | 840118 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/40 | 84549 | 87445 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/41 | 197216 | 205892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/40 | 1161992 | 1219415 |
| Fannie Mae Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/41 | 98711 | 94344 |
| Fannie Mae REMICS (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/25/35 | 4000 | 3966 |
| Freddie Mac 15 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/27 | 22230 | 21330 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/28 | 130209 | 123649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/29 | 305494 | 285329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/29 | 127224 | 118874 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/30 | 382801 | 359367 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/30 | 244846 | 229631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/30 | 906636 | 851119 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/30 | 997113 | 935998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/31 | 769906 | 722658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/30 | 266902 | 256212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/30 | 1569731 | 1506627 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/30 | 269961 | 258570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/30 | 9731 | 9320 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/30 | 572470 | 547388 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/30 | 174781 | 167145 |
| Freddie Mac 15 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/36 | 1230002 | 1097175 |
| Freddie Mac 20 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/42 | 454875 | 383428 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/42 | 1632274 | 1375885 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/42 | 473223 | 398890 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/37 | 59709 | 55387 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/38 | 1230206 | 1141281 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/34 | 557143 | 534002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/35 | 2095631 | 2029324 |
| Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/43 | 813933 | 741447 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/43 | 1354402 | 1233773 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/46 | 858625 | 769465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/42 | 964579 | 903941 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/42 | 29866 | 27988 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/42 | 810152 | 759527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/42 | 40722 | 37956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/43 | 142865 | 133611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/44 | 277890 | 260496 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/44 | 54035 | 50669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/44 | 123904 | 116114 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/44 | 49930 | 46820 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/44 | 101073 | 94777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/45 | 83833 | 78611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/47 | 773354 | 724215 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/47 | 679270 | 638206 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/47 | 823236 | 773468 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/48 | 279643 | 261981 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/40 | 94934 | 91270 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/40 | 122744 | 118029 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/40 | 68212 | 65628 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/40 | 220698 | 212743 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/41 | 5853 | 5627 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/41 | 190877 | 184129 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/43 | 197396 | 191333 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/44 | 490067 | 472741 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/44 | 77310 | 74328 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/45 | 110923 | 107902 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/45 | 588149 | 574706 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/45 | 3634376 | 3487232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/39 | 422807 | 418966 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/39 | 299634 | 295588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/39 | 90981 | 90294 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/40 | 31158 | 30923 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/41 | 445235 | 441284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/42 | 498473 | 494711 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/43 | 152943 | 149433 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/43 | 561821 | 557686 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/47 | 1015363 | 1005338 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/47 | 367558 | 361711 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/47 | 806155 | 793088 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/49 | 1028529 | 1012134 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/49 | 582806 | 571985 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/41 | 242032 | 245366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/41 | 1709815 | 1733369 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/01/35 | 63528 | 65611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/01/39 | 67359 | 69156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/40 | 78749 | 79152 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/41 | 885252 | 918947 |
| Freddie Mac 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 08/01/50 | 929907 | 718441 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 10/01/50 | 2328936 | 1799302 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/50 | 349114 | 286746 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/50 | 652704 | 538994 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 16387807 | 13396679 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/51 | 3741945 | 3056547 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 1951637 | 1610859 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 1167569 | 961523 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 07/01/51 | 4496995 | 3728439 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/51 | 1559381 | 1279186 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/51 | 4631134 | 3774682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/51 | 5646098 | 4626064 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/52 | 15947204 | 13136817 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/52 | 1814394 | 1488880 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/50 | 464416 | 398119 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/51 | 3870499 | 3352639 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 13242292 | 11387047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/51 | 11753791 | 10101626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 5909037 | 5053323 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 31928579 | 27256680 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Freddie Mac 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/52 | 9709331 | $8304059 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/44 | 7256871 | 6603459 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/47 | 600013 | 538064 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/50 | 4981407 | 4446385 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/50 | 2298023 | 2075434 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/51 | 456787 | 406795 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/51 | 643620 | 569044 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/52 | 336839 | 300615 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/52 | 9612116 | 8536333 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/52 | 17189156 | 15198037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/44 | 16904 | 15834 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/46 | 2709605 | 2536105 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/46 | 628569 | 580011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/48 | 3742961 | 3486990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/48 | 1066967 | 990454 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/50 | 337988 | 311164 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/45 | 5504493 | 5286371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/47 | 1290351 | 1235967 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/48 | 2792730 | 2716912 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/48 | 1219800 | 1168398 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/49 | 122997 | 117279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/50 | 1692199 | 1616418 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/50 | 1398561 | 1328339 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/52 | 1610011 | 1551719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/52 | 496092 | 477477 |
|  Freddie Mac Gold Pool <br>3.000%, 09/01/27 | 147495 | 139884 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/28 | 82429 | 78220 |
|  Freddie Mac Multifamily Structured Pass-Through Certificates <br>0.805%, 05/25/29 (a) (b) | 6256726 | 237819 |
|  Freddie Mac STACR REMIC Trust (CMO) <br>6.578%, SOFR30A + 2.650%, 01/25/51 (144A) (a) | 1040000 | 935128 |
|  Freddie Mac Structured Agency Credit Risk Debt Notes (CMO) <br>7.328%, SOFR30A + 3.400%, 08/25/33 (144A) (a) | 753701 | 696103 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.839%, 1M LIBOR + 4.450%, 03/25/30 (a) | 682210 | 717898 |
|  FREMF Mortgage Trust <br>0.100%, 01/25/29 (144A) (b) | 25269481 | 111653 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.231%, 08/25/50 (144A) (a) | 304000 | 278381 |
| Ginnie Mae I 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/45 | 471525 | 433030 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/15/42 | 136325 | 128206 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/15/42 | 78287 | 73624 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/15/42 | 167929 | 157930 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/15/42 | 202184 | 190148 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/15/42 | 212346 | 199701 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/15/42 | 72284 | 67492 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/15/42 | 551724 | 518869 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/15/43 | 158325 | 148897 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/15/43 | 325086 | 305764 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/15/43 | 234774 | 220819 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/15/43 | 788190 | 741312 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/15/43 | 1119835 | 1053293 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/15/43 | 332013 | 312240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/15/43 | 937032 | 881422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/15/41 | 267722 | 259164 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Ginnie Mae I 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/15/41 | 22561 | 21907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/15/42 | 3125345 | 3105640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/15/47 | 70392 | 69650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/47 | 159748 | 158120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/15/47 | 57760 | 57352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/38 | 106946 | 109455 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/15/39 | 178540 | 182763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/15/39 | 127574 | 130144 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/15/40 | 7789 | 7929 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/40 | 350437 | 358649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/15/33 | 10950 | 11467 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/15/33 | 32952 | 34660 |
| Ginnie Mae II 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, TBA (c) | 20625200 | 17280520 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/20/50 | 7464370 | 6306534 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/20/50 | 5055486 | 4266029 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/20/51 | 11180622 | 9427502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/20/51 | 836134 | 700855 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, TBA (c) | 10160300 | 8802458 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/20/51 | 6544860 | 5700211 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/20/51 | 7684560 | 6668417 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/20/51 | 14572848 | 12640683 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/20/52 | 3979767 | 3447883 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/20/52 | 2885315 | 2501930 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, TBA (c) | 9143470 | 8139350 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/20/44 | 40818 | 37317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/47 | 828339 | 745997 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/20/49 | 21444 | 19306 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/50 | 326610 | 293289 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/51 | 23286809 | 20824156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, TBA (c) | 15061496 | 13835719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/20/43 | 756664 | 712901 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/43 | 413462 | 390004 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/43 | 31997 | 30147 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/44 | 817093 | 767573 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/45 | 29030 | 27094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/20/45 | 43155 | 40334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/45 | 177269 | 165499 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/45 | 31819 | 29654 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/20/45 | 42902 | 40052 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/45 | 81445 | 75954 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/20/45 | 29947 | 27869 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/20/45 | 451026 | 419328 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/46 | 90519 | 84563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/46 | 376544 | 351554 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/20/46 | 142683 | 133465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/46 | 865350 | 806045 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/48 | 34935 | 32546 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/20/48 | 14252 | 13275 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, TBA (c) | 11844500 | 11206051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/20/39 | 15978 | 15444 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/39 | 115826 | 111912 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/40 | 30062 | 29046 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/20/40 | 347584 | 335844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/40 | 193744 | 187201 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Ginnie Mae II 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/20/40 | 736324 | $| 711446 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/20/41 | 657806 |  | 633071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/20/41 | 11711 |  | 11315 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/43 | 68355 |  | 66031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/20/44 | 268621 |  | 259368 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/20/46 | 50272 |  | 48089 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/20/47 | 174536 |  | 167564 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/20/47 | 452423 |  | 434351 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/47 | 515258 |  | 494697 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/20/47 | 252330 |  | 242262 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/20/50 | 516041 |  | 493998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, TBA (c) | 5568000 |  | 5400473 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/20/39 | 26680 |  | 26628 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/20/40 | 32523 |  | 32459 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/20/40 | 26688 |  | 26636 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/20/40 | 1676 |  | 1673 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/20/48 | 277641 |  | 272626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/49 | 1067704 |  | 1047906 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/20/49 | 229869 |  | 225101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/20/49 | 900891 |  | 882215 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/20/50 | 25838 |  | 25335 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, TBA (c) | 7087000 |  | 7021298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/20/33 | 328663 |  | 331242 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/20/39 | 97820 |  | 99456 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/20/42 | 137296 |  | 139632 |
|  Government National Mortgage Association <br>0.526%, 03/16/55 (a) (b) | 1250309 |  | 21658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.599%, 09/16/55 (a) (b) | 1083670 |  | 24705 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.910%, 02/16/50 (a) (b) | 150184 |  | 3640 |
|  Uniform Mortgage-Backed Securities 15 Yr. Pool <br>1.500%, TBA (c) | 10257000 |  | 8878824 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, TBA (c) | 30249900 |  | 26899098 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, TBA (c) | 7588800 |  | 6942826 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, TBA (c) | 775000 |  | 755351 |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool <br>2.000%, TBA (c) | 31242855 |  | 25414821 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, TBA (c) | 18998274 |  | 16668502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, TBA (c) | 7653006 |  | 6951246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, TBA (c) | 10368600 |  | 9977145 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, TBA (c) | 16488000 |  | 16243331 |
|  |  |  | 829586742 |
| **U.S. Treasury—16.6%** | **U.S. Treasury—16.6%** | **U.S. Treasury—16.6%** | **U.S. Treasury—16.6%** |
| U.S. Treasury Bonds | U.S. Treasury Bonds | U.S. Treasury Bonds | U.S. Treasury Bonds |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 05/15/40 (d) | 10822000 |  | 6773050 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 08/15/40 | 10822000 |  | 6720631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 11/15/40 (d) | 10822000 |  | 7035568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 08/15/49 | 4760000 |  | 3346131 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/15/45 (d) (e) | 20100000 |  | 15132316 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 11/15/47 (d) (e) | 20100000 |  | 15678785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/43 | 3865000 |  | 3154655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 11/15/46 | 3706000 |  | 2969577 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/48 (d) (e) | 23806000 |  | 19512551 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 02/15/43 | 3865000 |  | 3297328 |
| **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** |
| U.S. Treasury Bonds | U.S. Treasury Bonds | U.S. Treasury Bonds | U.S. Treasury Bonds |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.625%, 08/15/43 | 3865000 |  | 3553083 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 11/15/43 | 3865000 |  | 3622532 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 05/15/39 | 1010000 |  | 1040221 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 11/15/39 | 1010000 |  | 1053122 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/15/39 | 1010000 |  | 1070955 |
|  U.S. Treasury Notes <br>0.125%, 03/31/23 | 10482000 |  | 10374651 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.125%, 04/30/23 | 10482000 |  | 10337873 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.125%, 05/31/23 | 10482000 |  | 10294880 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 04/15/23 | 27956000 |  | 27630575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 04/30/25 | 41246000 |  | 37643420 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 11/30/25 | 12344000 |  | 11041129 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 12/31/25 | 12344000 |  | 11031968 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 03/15/23 | 27956000 |  | 27743032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 05/31/27 | 15364000 |  | 13172229 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.750%, 05/31/26 | 12344000 |  | 11008823 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 03/31/28 | 5324000 |  | 4627305 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 04/30/28 | 5324000 |  | 4619610 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 05/31/28 | 5324000 |  | 4609419 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 10/31/24 | 41246000 |  | 39078974 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 08/15/26 | 10766000 |  | 9813041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 02/15/30 | 5471000 |  | 4662318 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 08/15/29 | 2246000 |  | 1949019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 05/15/31 | 1989000 |  | 1672702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 07/31/24 | 14357000 |  | 13732807 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 12/31/24 | 41246000 |  | 39151477 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/15/25 | 9276000 |  | 8825969 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/15/26 | 15364000 |  | 14205098 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 07/31/24 | 7432000 |  | 7148365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 05/15/25 | 8178000 |  | 7771336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 08/15/27 | 22796000 |  | 21087190 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 05/15/29 | 5471000 |  | 4973481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 02/15/29 | 5471000 |  | 5056401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 05/31/23 | 7432000 |  | 7376841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 08/15/28 | 2236000 |  | 2105596 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/32 | 1745500 |  | 1608587 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 11/15/28 | 4225000 |  | 4029759 |
|  |  |  | 472344380 |
|  Total U.S. Treasury & Government Agencies<br>(Cost $1,433,377,044) |  |  | 1301931122 |
| **Corporate Bonds & Notes—26.2%** | **Corporate Bonds & Notes—26.2%** | **Corporate Bonds & Notes—26.2%** | **Corporate Bonds & Notes—26.2%** |
| **Advertising—0.0%** | **Advertising—0.0%** | **Advertising—0.0%** | **Advertising—0.0%** |
|  Interpublic Group of Cos., Inc. (The) <br>4.750%, 03/30/30 | 552000 |  | 520756 |
|  Omnicom Group, Inc. <br>2.450%, 04/30/30 | 349000 |  | 289050 |
|  |  |  | 809806 |
| **Aerospace/Defense—0.7%** | **Aerospace/Defense—0.7%** | **Aerospace/Defense—0.7%** | **Aerospace/Defense—0.7%** |
|  BAE Systems plc <br>3.400%, 04/15/30 (144A) | 1468000 |  | 1295383 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Aerospace/Defense—(Continued)** | **Aerospace/Defense—(Continued)** | **Aerospace/Defense—(Continued)** | **Aerospace/Defense—(Continued)** |
|  Boeing Co. (The) <br>3.650%, 03/01/47 | 406000 | $| 272351 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 02/01/50 | 937000 |  | 643306 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 08/01/59 | 1465000 |  | 983777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.930%, 05/01/60 | 643000 |  | 585737 |
|  L3Harris Technologies, Inc. <br>1.800%, 01/15/31 (f) | 3226000 |  | 2475763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 06/15/28 | 3678000 |  | 3520639 |
|  Lockheed Martin Corp. <br>3.600%, 03/01/35 | 2162000 |  | 1918943 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.070%, 12/15/42 | 321000 |  | 277686 |
|  Northrop Grumman Corp. <br>4.030%, 10/15/47 | 968000 |  | 802165 |
|  Raytheon Technologies Corp. <br>2.820%, 09/01/51 | 466000 |  | 301858 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.030%, 03/15/52 | 890000 |  | 603374 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 07/01/50 | 497000 |  | 347916 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 11/16/28 | 2702000 |  | 2586105 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 12/15/44 | 425000 |  | 334322 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.350%, 04/15/47 | 1607000 |  | 1366716 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 11/01/28 | 1810000 |  | 1954015 |
|  |  |  | 20270056 |
| **Agriculture—0.2%** | **Agriculture—0.2%** | **Agriculture—0.2%** | **Agriculture—0.2%** |
|  Altria Group, Inc. <br>3.125%, 06/15/31 (EUR) | 2110000 |  | 1870554 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.400%, 02/04/41 | 829000 |  | 549832 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 02/04/51 | 358000 |  | 224223 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 09/16/46 | 1201000 |  | 803044 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.800%, 02/14/39 | 301000 |  | 277542 |
|  BAT Capital Corp. <br>3.984%, 09/25/50 | 180000 |  | 117784 |
|  Philip Morris International, Inc. <br>1.450%, 08/01/39 (EUR) | 2000000 |  | 1224470 |
|  Reynolds American, Inc. <br>5.850%, 08/15/45 | 1340000 |  | 1141408 |
|  |  |  | 6208857 |
| **Airlines—0.5%** | **Airlines—0.5%** | **Airlines—0.5%** | **Airlines—0.5%** |
|  Air Canada Pass-Through Trust <br>3.300%, 01/15/30 (144A) | 480301 |  | 410022 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 01/15/26 (144A) | 6085 |  | 5546 |
|  Allegiant Travel Co. <br>7.250%, 08/15/27 (144A) | 350000 |  | 332907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.500%, 02/05/24 (144A) | 892000 |  | 889770 |
|  American Airlines Pass-Through Trust <br>3.000%, 10/15/28 | 1543961 |  | 1337811 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 02/15/32 | 1041637 |  | 862012 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 12/15/29 | 395725 |  | 343182 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.575%, 01/15/28 | 128588 |  | 114782 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 03/22/29 | 224239 |  | 201135 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 02/15/29 | 295701 |  | 263102 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 09/22/23 | 1307483 |  | 1285048 |
|  Avianca Midco 2 plc <br>9.000%, 12/01/28 (144A)† | 574316 |  | 424994 |
| **Airlines—(Continued)** | **Airlines—(Continued)** | **Airlines—(Continued)** | **Airlines—(Continued)** |
|  Delta Air Lines Pass-Through Trust <br>3.204%, 10/25/25 | 2258000 |  | 2200786 |
|  Gol Finance S.A. <br>7.000%, 01/31/25 (144A)† | 400000 |  | 176168 |
|  Turkish Airlines Pass-Through Trust <br>4.200%, 03/15/27 (144A) | 758543 |  | 651127 |
|  United Airlines Pass-Through Trust <br>2.700%, 05/01/32 | 513024 |  | 413947 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 10/07/28 | 392123 |  | 333406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.100%, 07/07/28 | 122940 |  | 110830 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.450%, 06/01/29 | 157712 |  | 140244 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/28 | 558561 |  | 480776 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/30 | 218461 |  | 188601 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 10/07/25 | 48600 |  | 42836 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/11/26 | 176592 |  | 164066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.150%, 02/25/33 | 202580 |  | 179183 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 01/15/26 | 483870 |  | 460347 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 10/15/27 | 2778197 |  | 2739152 |
|  |  |  | 14751780 |
| **Apparel—0.0%** | **Apparel—0.0%** | **Apparel—0.0%** | **Apparel—0.0%** |
|  William Carter Co. (The) <br>5.625%, 03/15/27 (144A) | 42000 |  | 40287 |
| **Auto Manufacturers—0.6%** | **Auto Manufacturers—0.6%** | **Auto Manufacturers—0.6%** | **Auto Manufacturers—0.6%** |
|  Ford Motor Co. <br>3.250%, 02/12/32 | 206000 |  | 154488 |
|  General Motors Co. <br>5.400%, 10/15/29 | 591000 |  | 563990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.600%, 10/15/32 | 3732000 |  | 3467014 |
|  General Motors Financial Co., Inc. <br>2.700%, 06/10/31 | 2620000 |  | 2007380 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.100%, 01/12/32 | 1947000 |  | 1525556 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 05/09/23 | 2236000 |  | 2224932 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/15/25 | 851000 |  | 825719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 04/06/29 | 1119000 |  | 1002295 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/09/27 | 3410000 |  | 3303160 |
|  Nissan Motor Co., Ltd. <br>4.810%, 09/17/30 (144A) | 1809000 |  | 1535247 |
|  |  |  | 16609781 |
| **Auto Parts & Equipment—0.0%** | **Auto Parts & Equipment—0.0%** | **Auto Parts & Equipment—0.0%** | **Auto Parts & Equipment—0.0%** |
|  Aptiv plc <br>3.100%, 12/01/51 | 176000 |  | 104014 |
|  Dana, Inc. <br>4.250%, 09/01/30 | 143000 |  | 115204 |
|  Metalsa S.A. de C.V. <br>3.750%, 05/04/31 | 209000 |  | 163542 |
|  Nemak S.A.B. de C.V. <br>3.625%, 06/28/31 | 209000 |  | 163487 |
|  |  |  | 546247 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Banks—6.2%** | **Banks—6.2%** | **Banks—6.2%** |
|  Banco Mercantil del Norte S.A. <br>5.875%, 5Y H15 + 4.643%, 01/24/27 (a) | 215000 | $191575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 5Y H15 + 4.643%, 01/24/27 (144A) (a) | 300000 | 267313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 10Y H15 + 5.034%, 01/24/32 (a) | 215000 | 177864 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 10Y H15 + 5.034%, 01/24/32 (144A) (a) | 270000 | 223647 |
|  Bank of America Corp. <br>1.658%, SOFR + 0.910%, 03/11/27 (a) | 1056000 | 934247 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.734%, SOFR + 0.960%, 07/22/27 (a) | 3782000 | 3313472 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.922%, SOFR + 1.370%, 10/24/31 (a) (f) | 1613000 | 1232151 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.299%, SOFR + 1.220%, 07/21/32 (a) | 2800000 | 2156299 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.456%, 3M LIBOR + 0.870%, 10/22/25 (a) | 5796000 | 5476392 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.572%, SOFR + 1.210%, 10/20/32 (a) | 5272000 | 4129043 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.687%, SOFR + 1.320%, 04/22/32 (a) | 1690000 | 1352649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.972%, SOFR + 1.330%, 02/04/33 (a) | 15240000 | 12277629 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.972%, SOFR + 1.560%, 07/21/52 (a) | 353000 | 220489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.824%, 3M LIBOR + 1.575%, 01/20/28 (a) | 1466000 | 1367948 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.970%, 3M LIBOR + 1.070%, 03/05/29 (a) | 2135000 | 1970018 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.571%, SOFR + 1.830%, 04/27/33 (a) | 8837000 | 8083228 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.015%, SOFR + 2.160%, 07/22/33 (a) | 1892000 | 1796250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 3M LIBOR + 2.931%, 03/15/28 (a) | 1153000 | 1015401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.204%, SOFR + 1.990%, 11/10/28 (a) | 1140000 | 1177018 |
|  Bank of New York Mellon Corp. (The) <br>4.625%, 3M LIBOR + 3.131%, 09/20/26 (a) | 629000 | 536373 |
|  Barclays plc <br>2.894%, 1Y H15 + 1.300%, 11/24/32 (a) | 371000 | 282547 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.304%, 1Y H15 + 2.300%, 08/09/26 (a) | 325000 | 322570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.746%, 1Y H15 + 3.000%, 08/09/33 (a) | 1855000 | 1752347 |
|  Citigroup, Inc. <br>2.976%, SOFR + 1.422%, 11/05/30 (a) | 3803000 | 3197660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.057%, SOFR + 1.351%, 01/25/33 (a) | 699000 | 564103 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.070%, SOFR + 1.280%, 02/24/28 (a) | 1784000 | 1608327 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.785%, SOFR + 1.939%, 03/17/33 (a) | 1138000 | 973322 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 5Y H15 + 3.417%, 02/18/26 (a) | 2495000 | 2126987 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.270%, SOFR + 2.338%, 11/17/33 (a) (f) | 3155000 | 3254830 |
|  Discover Bank <br>4.250%, 03/13/26 | 725000 | 689451 |
|  Freedom Mortgage Corp. <br>8.125%, 11/15/24 (144A) | 734000 | 675280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.250%, 04/15/25 (144A) | 642000 | 577464 |
|  Goldman Sachs Group, Inc. (The) <br>0.657%, SOFR + 0.505%, 09/10/24 (a) | 11327000 | 10896986 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.673%, SOFR + 0.572%, 03/08/24 (a) | 286000 | 282919 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.383%, SOFR + 1.248%, 07/21/32 (a) | 4288000 | 3327096 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.615%, SOFR + 1.281%, 04/22/32 (a) | 2261000 | 1803127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.640%, SOFR + 1.114%, 02/24/28 (a) | 5185000 | 4616648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, SOFR + 1.264%, 10/21/32 (a) | 7838000 | 6188645 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.102%, SOFR + 1.410%, 02/24/33 (a) | 9461000 | 7682148 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/25 | 6705000 | 6447812 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.776%, 3M LIBOR + 1.170%, 05/15/26 (a) | 1602000 | 1590722 |
|  Grupo Aval, Ltd. <br>4.375%, 02/04/30 (144A) | 431000 | 349123 |
|  HSBC Holdings plc <br>3.973%, 3M LIBOR + 1.610%, 05/22/30 (a) | 525000 | 459524 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.583%, 3M LIBOR + 1.535%, 06/19/29 (a) | 568000 | 522916 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.402%, SOFR + 2.870%, 08/11/33 (a) | 3237000 | 2997537 |
| **Banks—(Continued)** | **Banks—(Continued)** | **Banks—(Continued)** |
|  JPMorgan Chase & Co. <br>1.764%, 3M TSFR + 1.105%, 11/19/31 (a) | 786000 | 595842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.947%, SOFR + 1.170%, 02/24/28 (a) | 3453000 | 3123575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.963%, SOFR + 1.260%, 01/25/33 (a) | 8787000 | 7151759 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.540%, 3M LIBOR + 1.380%, 05/01/28 (a) | 2992000 | 2753285 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.782%, 3M LIBOR + 1.337%, 02/01/28 (a) | 1510000 | 1410786 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.960%, 3M LIBOR + 1.245%, 01/29/27 (a) | 4429000 | 4221930 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.565%, SOFR + 1.750%, 06/14/30 (a) | 2178000 | 2049202 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.586%, SOFR + 1.800%, 04/26/33 (a) | 853000 | 789676 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.912%, SOFR + 2.080%, 07/25/33 (a) | 2040000 | 1942339 |
|  Morgan Stanley <br>0.529%, SOFR + 0.455%, 01/25/24 (a) | 6413000 | 6369984 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.731%, SOFR + 0.616%, 04/05/24 (a) | 1112000 | 1096051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.593%, SOFR + 0.879%, 05/04/27 (a) | 2498000 | 2191332 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.794%, SOFR + 1.034%, 02/13/32 (a) | 1101000 | 827468 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.928%, SOFR + 1.020%, 04/28/32 (a) | 1760000 | 1327967 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.239%, SOFR + 1.178%, 07/21/32 (a) | 3973000 | 3048062 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.511%, SOFR + 1.200%, 10/20/32 (a) | 1838000 | 1438348 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.699%, SOFR + 1.143%, 01/22/31 (a) | 8242000 | 6810749 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.591%, 3M LIBOR + 1.340%, 07/22/28 (a) | 517000 | 474219 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.431%, 3M LIBOR + 1.628%, 01/23/30 (a) | 1167000 | 1086131 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.598%, SOFR + 0.466%, 11/10/23 (a) | 3037000 | 3028087 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.889%, SOFR + 2.076%, 07/20/33 (a) | 1561000 | 1466593 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.296%, SOFR + 2.240%, 10/18/28 (a) | 2777000 | 2866710 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.342%, SOFR + 2.560%, 10/18/33 (a) | 3568000 | 3738567 |
|  NBK Tier 1, Ltd. <br>3.625%, 6Y CMS + 2.875%, 08/24/26 (144A) (a) | 318000 | 276938 |
|  State Street Corp. <br>5.625%, 3M LIBOR + 2.539%, 12/15/23 (a) (f) | 2815000 | 2613098 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.366%, 3M LIBOR + 3.597%, 03/15/23 (a) | 280000 | 279237 |
|  Wells Fargo & Co. <br>4.897%, SOFR + 2.100%, 07/25/33 (a) (f) | 1105000 | 1049234 |
|  |  | 175116266 |
| **Beverages—0.1%** | **Beverages—0.1%** | **Beverages—0.1%** |
|  Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. <br>4.700%, 02/01/36 | 822000 | 776332 |
|  Anheuser-Busch InBev Worldwide, Inc. <br>4.439%, 10/06/48 | 406000 | 346735 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 01/23/29 | 1519000 | 1499393 |
|  |  | 2622460 |
| **Biotechnology—0.2%** | **Biotechnology—0.2%** | **Biotechnology—0.2%** |
|  Amgen, Inc. <br>3.000%, 01/15/52 | 176000 | 112330 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 08/18/29 | 2500000 | 2336310 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 05/01/45 | 1565000 | 1311188 |
|  Biogen, Inc. <br>2.250%, 05/01/30 | 973000 | 792695 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 05/01/50 | 179000 | 116357 |
|  Gilead Sciences, Inc. <br>2.800%, 10/01/50 | 176000 | 112523 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.150%, 03/01/47 | 790000 | 652477 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, 04/01/44 | 1371000 | 1257203 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Biotechnology—(Continued)** | **Biotechnology—(Continued)** | **Biotechnology—(Continued)** | **Biotechnology—(Continued)** |
|  Royalty Pharma plc <br>3.350%, 09/02/51 | 179000 | $| 110347 |
|  |  |  | 6801430 |
| **Chemicals—0.1%** | **Chemicals—0.1%** | **Chemicals—0.1%** | **Chemicals—0.1%** |
|  Braskem Netherlands Finance B.V. <br>8.500%, 5Y H15 + 8.220%, 01/23/81 (144A) (a) | 245000 |  | 237366 |
|  DuPont de Nemours, Inc. <br>5.319%, 11/15/38 | 385000 |  | 370007 |
|  Ecolab, Inc. <br>2.750%, 08/18/55 | 623000 |  | 371769 |
|  Olympus Water US Holding Corp. <br>7.125%, 10/01/27 (144A) (f) | 200000 |  | 190500 |
|  SASOL Financing USA LLC <br>4.375%, 09/18/26 | 600000 |  | 530440 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 03/27/24 | 654000 |  | 639344 |
|  Sherwin-Williams Co. (The) <br>2.300%, 05/15/30 | 716000 |  | 588622 |
|  Westlake Corp. <br>3.375%, 08/15/61 | 916000 |  | 540182 |
|  |  |  | 3468230 |
| **Commercial Services—0.6%** | **Commercial Services—0.6%** | **Commercial Services—0.6%** | **Commercial Services—0.6%** |
|  Atento Luxco 1 S.A. <br>8.000%, 02/10/26 | 53000 |  | 28090 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 02/10/26 (144A) | 347000 |  | 183910 |
|  Global Payments, Inc. <br>1.200%, 03/01/26 | 1141000 |  | 994561 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.150%, 01/15/27 | 1739000 |  | 1517019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.900%, 05/15/30 (f) | 1012000 |  | 829200 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 08/15/29 | 3661000 |  | 3112038 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, 04/01/26 | 814000 |  | 792010 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 08/15/27 | 2072000 |  | 2009845 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 08/15/52 | 1142000 |  | 1032552 |
|  GXO Logistics, Inc. <br>2.650%, 07/15/31 | 819000 |  | 604709 |
|  Moody's Corp. <br>3.100%, 11/29/61 | 1300000 |  | 818174 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 01/15/28 | 1015000 |  | 935588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 05/20/50 | 520000 |  | 359046 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 12/17/48 | 465000 |  | 419728 |
|  Movida Europe S.A. <br>5.250%, 02/08/31 (f) | 200000 |  | 149953 |
|  RELX Capital, Inc. <br>3.000%, 05/22/30 | 789000 |  | 672344 |
|  S&P Global, Inc. <br>4.750%, 08/01/28 (144A) | 1737000 |  | 1716716 |
|  |  |  | 16175483 |
| **Computers—0.2%** | **Computers—0.2%** | **Computers—0.2%** | **Computers—0.2%** |
| Apple, Inc. | Apple, Inc. | Apple, Inc. | Apple, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 02/08/41 | 601000 |  | 424727 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.550%, 08/20/60 | 583000 |  | 352775 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, 02/08/51 | 518000 |  | 341609 |
| **Computers—(Continued)** | **Computers—(Continued)** | **Computers—(Continued)** | **Computers—(Continued)** |
| Apple, Inc. | Apple, Inc. | Apple, Inc. | Apple, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.800%, 02/08/61 | 610000 |  | 385920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.100%, 08/08/62 | 802000 |  | 666632 |
|  Dell International LLC / EMC Corp. <br>3.450%, 12/15/51 (144A) (f) | 532000 |  | 325586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, 10/01/26 | 783000 |  | 770706 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.350%, 07/15/46 | 441000 |  | 502415 |
|  Hewlett Packard Enterprise Co. <br>6.350%, 10/15/45 | 301000 |  | 300210 |
|  HP, Inc. <br>2.650%, 06/17/31 | 976000 |  | 760385 |
|  Leidos, Inc. <br>2.300%, 02/15/31 | 1565000 |  | 1198877 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 05/15/30 | 314000 |  | 283152 |
|  Western Digital Corp. <br>2.850%, 02/01/29 | 533000 |  | 412366 |
|  |  |  | 6725360 |
| **Diversified Financial Services—0.3%** | **Diversified Financial Services—0.3%** | **Diversified Financial Services—0.3%** | **Diversified Financial Services—0.3%** |
|  ASG Finance Designated Activity Co. <br>7.875%, 12/03/24 (144A) | 509000 |  | 486095 |
|  Capital One Financial Corp. <br>3.273%, SOFR + 1.790%, 03/01/30 (a) | 1130000 |  | 966116 |
|  Charles Schwab Corp. (The) <br>4.000%, 10Y H15 + 3.079%, 12/01/30 (a) | 1658000 |  | 1322172 |
|  Intercontinental Exchange, Inc. <br>3.000%, 09/15/60 | 179000 |  | 110811 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 09/21/28 | 541000 |  | 511813 |
|  Nationstar Mortgage Holdings, Inc. <br>5.125%, 12/15/30 (144A) | 531000 |  | 410111 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/15/28 (144A) | 590000 |  | 481093 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 11/15/31 (144A) | 251000 |  | 195152 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/15/27 (144A) | 128000 |  | 114560 |
|  Nomura Holdings, Inc. <br>2.608%, 07/14/31 | 1292000 |  | 999238 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.099%, 07/03/25 | 735000 |  | 726910 |
|  ORIX Corp. <br>5.200%, 09/13/32 | 289000 |  | 281681 |
|  Rocket Mortgage LLC / Rocket Mortgage Co-Issuer, Inc. <br>3.625%, 03/01/29 (144A) | 564000 |  | 446935 |
|  United Wholesale Mortgage LLC <br>5.500%, 11/15/25 (144A) | 1640000 |  | 1477017 |
|  |  |  | 8529704 |
| **Electric—2.4%** | **Electric—2.4%** | **Electric—2.4%** | **Electric—2.4%** |
|  AEP Texas, Inc. <br>3.450%, 01/15/50 | 1346000 |  | 950888 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.450%, 05/15/51 | 590000 |  | 416041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 10/01/47 | 1109000 |  | 805787 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 06/01/28 | 1999000 |  | 1874489 |
|  AEP Transmission Co. LLC <br>3.650%, 04/01/50 | 358000 |  | 273046 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 06/15/49 | 482000 |  | 375437 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/46 | 225000 |  | 176701 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Electric—(Continued)** | **Electric—(Continued)** | **Electric—(Continued)** |
|  Alabama Power Co. <br>3.450%, 10/01/49 | 637000 | $458876 |
|  Ameren Illinois Co. <br>3.250%, 03/15/50 | 775000 | 554679 |
|  American Transmission Systems, Inc. <br>2.650%, 01/15/32 (144A) | 1490000 | 1222786 |
|  Baltimore Gas & Electric Co. <br>3.200%, 09/15/49 | 1655000 | 1164215 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/15/46 | 573000 | 424931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 08/15/47 | 599000 | 461934 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 09/15/48 | 622000 | 521348 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 06/01/52 | 305000 | 269368 |
|  CenterPoint Energy Houston Electric LLC <br>2.350%, 04/01/31 | 1154000 | 956900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 03/01/52 | 425000 | 326305 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 03/01/48 | 406000 | 332335 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 02/01/49 | 373000 | 324279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, 10/01/52 | 793000 | 756666 |
|  Commonwealth Edison Co. <br>3.125%, 03/15/51 | 971000 | 669984 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 11/15/49 | 485000 | 344826 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/48 | 694000 | 570095 |
|  Consolidated Edison Co. of New York, Inc. <br>6.150%, 11/15/52 | 2116000 | 2265261 |
|  Consumers Energy Co. <br>3.500%, 08/01/51 | 615000 | 463188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 02/15/50 | 1357000 | 1057451 |
|  DTE Electric Co. <br>3.250%, 04/01/51 | 420000 | 300484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 03/01/52 (f) | 744000 | 574872 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 05/15/48 | 1373000 | 1141015 |
|  Duke Energy Carolinas LLC <br>3.200%, 08/15/49 | 504000 | 353240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.450%, 04/15/51 | 909000 | 663487 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 03/15/48 | 471000 | 376802 |
|  Duke Energy Corp. <br>3.150%, 08/15/27 | 309000 | 285118 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 03/15/28 | 724000 | 696650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/08/25 | 850000 | 848158 |
|  Duke Energy Florida LLC <br>2.500%, 12/01/29 | 3592000 | 3069779 |
|  Duke Energy Progress LLC <br>2.500%, 08/15/50 | 1216000 | 729642 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.450%, 03/15/29 | 1816000 | 1671656 |
|  Edison International <br>4.125%, 03/15/28 | 704000 | 653094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.950%, 11/15/29 | 1939000 | 2024861 |
|  Entergy Louisiana LLC <br>4.200%, 09/01/48 | 1310000 | 1071886 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 09/15/52 | 324000 | 290720 |
|  Entergy Mississippi LLC <br>3.850%, 06/01/49 | 382000 | 291555 |
|  Exelon Corp. <br>4.100%, 03/15/52 | 445000 | 355583 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.450%, 04/15/46 | 114000 | 96296 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 04/15/50 | 731000 | 636750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.100%, 06/15/45 | 166000 | 154360 |
| **Electric—(Continued)** | **Electric—(Continued)** | **Electric—(Continued)** |
|  FirstEnergy Corp. <br>2.050%, 03/01/25 | 272000 | 251112 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 09/01/30 | 849000 | 673851 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.400%, 03/01/50 | 1030000 | 679594 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 07/15/27 | 1223000 | 1137694 |
|  FirstEnergy Transmission LLC <br>4.550%, 04/01/49 (144A) | 1684000 | 1362606 |
|  Florida Power & Light Co. <br>2.875%, 12/04/51 | 304000 | 203876 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 10/01/49 | 1708000 | 1230236 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 12/01/47 | 440000 | 352750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 03/01/48 | 1923000 | 1587033 |
|  Generacion Mediterranea S.A./Central Termica Roca S.A. <br>9.875%, 12/01/27 (144A) | 492699 | 316313 |
|  Genneia S.A. <br>8.750%, 09/02/27 (144A) | 84612 | 82708 |
|  MidAmerican Energy Co. <br>2.700%, 08/01/52 | 590000 | 377751 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 04/15/29 | 2407000 | 2250458 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 08/01/48 | 494000 | 387615 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 07/15/49 | 687000 | 582735 |
|  Northern States Power Co. <br>2.600%, 06/01/51 | 419000 | 265583 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 04/01/52 | 879000 | 624941 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/15/45 | 471000 | 383518 |
|  NRG Energy, Inc. <br>2.450%, 12/02/27 (144A) | 3210000 | 2659661 |
|  NSTAR Electric Co. <br>3.950%, 04/01/30 | 104000 | 97765 |
|  Ohio Power Co. <br>1.625%, 01/15/31 | 1031000 | 797777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/49 | 386000 | 304406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.150%, 04/01/48 | 390000 | 316397 |
|  Oncor Electric Delivery Co. LLC <br>3.100%, 09/15/49 | 937000 | 663193 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 05/15/50 | 357000 | 281460 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 09/15/32 (144A) | 1383000 | 1353981 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, 06/01/52 (144A) | 859000 | 785204 |
|  Pacific Gas and Electric Co. <br>3.500%, 08/01/50 | 183000 | 113664 |
|  PECO Energy Co. <br>2.800%, 06/15/50 | 541000 | 353894 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.050%, 03/15/51 | 1079000 | 737074 |
|  Public Service Electric & Gas Co. <br>2.450%, 01/15/30 | 1100000 | 943660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 01/01/50 | 602000 | 420954 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 09/01/28 | 668000 | 628655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, 12/15/32 | 980000 | 981755 |
|  Southern California Edison Co. <br>2.250%, 06/01/30 | 1858000 | 1530166 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/31 | 777000 | 640257 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 11/01/32 | 1462000 | 1544748 |
|  Southwestern Public Service Co. <br>3.150%, 05/01/50 | 1333000 | 919352 |
|  Talen Energy Supply LLC <br>6.625%, 01/15/28 (144A) (g) | 688000 | 703480 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.250%, 05/15/27 (144A) (g) | 500000 | 517500 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Electric—(Continued)** | **Electric—(Continued)** | **Electric—(Continued)** |
|  Tampa Electric Co.<br>4.450%, 06/15/49 | 337000 | 278045 |
|  Trans-Allegheny Interstate Line Co. <br>3.850%, 06/01/25 (144A) | 2705000 | 2611049 |
|  Virginia Electric & Power Co. <br>4.000%, 01/15/43 | 1226000 | 991346 |
|  Wisconsin Power & Light Co. <br>1.950%, 09/16/31 | 140000 | 109828 |
|  |  | 68339469 |
| **Electronics—0.0%** | **Electronics—0.0%** | **Electronics—0.0%** |
|  Agilent Technologies, Inc. <br>2.100%, 06/04/30 | 684000 | 553449 |
| **Energy-Alternate Sources—0.0%** | **Energy-Alternate Sources—0.0%** | **Energy-Alternate Sources—0.0%** |
|  SCC Power plc <br>4.000%, 05/17/32 (144A) (h) | 658356 | 19639 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 12/31/28 (144A) (h) | 1215425 | 420537 |
|  |  | 440176 |
| **Engineering & Construction—0.0%** | **Engineering & Construction—0.0%** | **Engineering & Construction—0.0%** |
|  HTA Group, Ltd. <br>7.000%, 12/18/25 (144A) | 205000 | 188600 |
|  IHS Holding, Ltd. <br>5.625%, 11/29/26 (144A) | 330000 | 272415 |
|  Weekley Homes LLC / Weekley Finance Corp. <br>4.875%, 09/15/28 (144A) | 318000 | 267197 |
|  |  | 728212 |
| **Entertainment—0.1%** | **Entertainment—0.1%** | **Entertainment—0.1%** |
|  Affinity Gaming <br>6.875%, 12/15/27 (144A) | 353000 | 299287 |
|  Caesars Entertainment, Inc. <br>8.125%, 07/01/27 (144A) | 761000 | 747720 |
|  CDI Escrow Issuer, Inc. <br>5.750%, 04/01/30 (144A) | 305000 | 273411 |
|  Midwest Gaming Borrower LLC / Midwest Gaming Finance Corp. <br>4.875%, 05/01/29 (144A) | 609000 | 518176 |
|  Wynn Resorts Finance LLC / Wynn Resorts Capital Corp. <br>5.125%, 10/01/29 (144A) | 520000 | 445708 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.750%, 04/15/25 (144A) | 1027000 | 1021307 |
|  |  | 3305609 |
| **Environmental Control—0.1%** | **Environmental Control—0.1%** | **Environmental Control—0.1%** |
|  Clean Harbors, Inc. <br>4.875%, 07/15/27 (144A) | 142000 | 134545 |
|  Covanta Holding Corp. <br>4.875%, 12/01/29 (144A) | 265000 | 217107 |
|  Republic Services, Inc. <br>3.950%, 05/15/28 | 584000 | 554727 |
|  Waste Management, Inc. <br>1.150%, 03/15/28 | 769000 | 642315 |
|  |  | 1548694 |
| **Food—0.0%** | **Food—0.0%** | **Food—0.0%** |
|  Albertsons Cos., Inc. / Safeway, Inc. / New Albertsons L.P. / Albertsons LLC <br>5.875%, 02/15/28 (144A) | 135000 | 128342 |
|  BRF GmbH <br>4.350%, 09/29/26 (144A) | 580000 | 526514 |
|  Frigorifico Concepcion S.A. <br>7.700%, 07/21/28 (144A) | 220000 | 177650 |
|  |  | 832506 |
| **Forest Products & Paper—0.0%** | **Forest Products & Paper—0.0%** | **Forest Products & Paper—0.0%** |
|  International Paper Co. <br>6.000%, 11/15/41 | 484000 | 482446 |
|  Suzano Austria GmbH <br>3.125%, 01/15/32 | 400000 | 311842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 01/15/31 | 135000 | 113255 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 07/14/26 (144A) | 200000 | 200534 |
|  |  | 1108077 |
| **Gas—0.1%** | **Gas—0.1%** | **Gas—0.1%** |
|  Atmos Energy Corp. <br>4.125%, 03/15/49 | 368000 | 300952 |
|  CenterPoint Energy Resources Corp. <br>1.750%, 10/01/30 | 366000 | 288547 |
|  ONE Gas, Inc. <br>2.000%, 05/15/30 | 370000 | 300840 |
|  Piedmont Natural Gas Co., Inc. <br>2.500%, 03/15/31 | 810000 | 660639 |
|  Promigas S.A. ESP / Gases del Pacifico SAC <br>3.750%, 10/16/29 (144A) (f) | 207000 | 168390 |
|  |  | 1719368 |
| **Healthcare-Products—0.2%** | **Healthcare-Products—0.2%** | **Healthcare-Products—0.2%** |
|  Baxter International, Inc. <br>3.950%, 04/01/30 | 316000 | 287698 |
|  GE HealthCare Technologies, Inc. <br>5.600%, 11/15/25 (144A) | 1399000 | 1407620 |
|  Medline Borrower L.P. <br>3.875%, 04/01/29 (144A) | 1751000 | 1411236 |
|  Thermo Fisher Scientific, Inc. <br>2.000%, 10/15/31 | 1337000 | 1082795 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 11/21/32 | 1196000 | 1212863 |
|  |  | 5402212 |
| **Healthcare-Services—0.8%** | **Healthcare-Services—0.8%** | **Healthcare-Services—0.8%** |
|  Aetna, Inc. <br>4.500%, 05/15/42 | 639000 | 551156 |
|  Elevance Health, Inc. <br>3.600%, 03/15/51 | 885000 | 661530 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.100%, 10/15/52 | 672000 | 716400 |
| HCA, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 07/15/31 | 1557000 | 1212013 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 03/15/27 (144A) | 1960000 | 1781990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/30 | 4029000 | 3474917 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/15/51 | 532000 | 341314 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Healthcare-Services—(Continued)** | **Healthcare-Services—(Continued)** | **Healthcare-Services—(Continued)** | **Healthcare-Services—(Continued)** |
| HCA, Inc. |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.625%, 03/15/32 (144A) | 1617000 | $| 1368230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/15/27 | 643000 |  | 619709 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 06/15/26 (f) | 1614000 |  | 1594518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 02/01/25 | 807000 |  | 806023 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 09/01/26 | 541000 |  | 534982 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 02/15/26 | 283000 |  | 284786 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 02/01/29 | 68000 |  | 67788 |
|  Select Medical Corp. <br>6.250%, 08/15/26 (144A) (f) | 2711000 |  | 2577700 |
|  Tenet Healthcare Corp. <br>4.250%, 06/01/29 (144A) | 857000 |  | 742419 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 01/15/30 (144A) | 788000 |  | 682065 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 06/15/28 (144A) | 92000 |  | 82316 |
|  UnitedHealth Group, Inc. <br>2.900%, 05/15/50 | 512000 |  | 346380 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.050%, 05/15/41 | 368000 |  | 276525 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 05/15/51 | 523000 |  | 374226 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 10/15/47 | 570000 |  | 453235 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 08/15/59 | 644000 |  | 503803 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 04/15/47 | 549000 |  | 471912 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 05/15/62 | 290000 |  | 271406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.050%, 02/15/63 | 249000 |  | 270200 |
|  |  |  | 21067543 |
| **Home Builders—0.2%** | **Home Builders—0.2%** | **Home Builders—0.2%** | **Home Builders—0.2%** |
|  Ashton Woods USA LLC / Ashton Woods Finance Co. <br>4.625%, 08/01/29 (144A) | 202000 |  | 161748 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 04/01/30 (144A) | 496000 |  | 398094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 01/15/28 (144A) | 1207000 |  | 1061943 |
|  Beazer Homes USA, Inc. <br>7.250%, 10/15/29 | 1030000 |  | 916168 |
|  Brookfield Residential Properties, Inc. / Brookfield Residential U.S. Corp. <br>5.000%, 06/15/29 (144A) | 265000 |  | 207063 |
|  Forestar Group, Inc. <br>3.850%, 05/15/26 (144A) (f) | 242000 |  | 212159 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/28 (144A) | 659000 |  | 565399 |
|  Homes By West Bay LLC <br>9.500%, 04/30/27 (i) (j) | 1259000 |  | 1144179 |
|  M/I Homes, Inc. <br>4.950%, 02/01/28 | 1010000 |  | 897345 |
|  Mattamy Group Corp. <br>4.625%, 03/01/30 (144A) | 662000 |  | 536527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 12/15/27 (144A) | 559000 |  | 495740 |
|  New Home Co., Inc. (The) <br>7.250%, 10/15/25 (144A) (f) | 215000 |  | 183825 |
|  Tri Pointe Homes, Inc. <br>5.700%, 06/15/28 | 60000 |  | 54351 |
|  |  |  | 6834541 |
| **Household Products/Wares—0.0%** | **Household Products/Wares—0.0%** | **Household Products/Wares—0.0%** | **Household Products/Wares—0.0%** |
|  Clorox Co. (The) <br>1.800%, 05/15/30 | 358000 |  | 285028 |
| **Insurance—0.1%** | **Insurance—0.1%** | **Insurance—0.1%** | **Insurance—0.1%** |
|  Ambac Assurance Corp. <br>5.100%, (144A) (k) | 162922 |  | 228091 |
|  American International Group, Inc. <br>4.375%, 01/15/55 | 379000 |  | 283563 |
|  Aon Corp. <br>3.750%, 05/02/29 | 1493000 |  | 1377208 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/15/28 | 612000 |  | 590284 |
|  Marsh & McLennan Cos., Inc. <br>2.250%, 11/15/30 | 1712000 |  | 1401567 |
|  |  |  | 3880713 |
| **Internet—0.4%** | **Internet—0.4%** | **Internet—0.4%** | **Internet—0.4%** |
|  Amazon.com, Inc. <br>2.500%, 06/03/50 | 838000 |  | 528117 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 08/22/57 | 1508000 |  | 1295247 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 12/01/32 | 5565000 |  | 5508382 |
|  eBay, Inc. <br>6.300%, 11/22/32 | 969000 |  | 1006825 |
|  Meta Platforms, Inc. <br>4.450%, 08/15/52 | 3274000 |  | 2601687 |
|  |  |  | 10940258 |
| **Investment Companies—0.1%** | **Investment Companies—0.1%** | **Investment Companies—0.1%** | **Investment Companies—0.1%** |
|  Blackstone Private Credit Fund <br>3.250%, 03/15/27 | 512000 |  | 431084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/15/29 | 1558000 |  | 1285390 |
|  Gaci First Investment Co. <br>5.000%, 10/13/27 | 1130000 |  | 1129842 |
|  |  |  | 2846316 |
| **Iron/Steel—0.1%** | **Iron/Steel—0.1%** | **Iron/Steel—0.1%** | **Iron/Steel—0.1%** |
|  GUSAP III L.P. <br>4.250%, 01/21/30 | 292000 |  | 270050 |
|  Nucor Corp. <br>2.700%, 06/01/30 | 568000 |  | 481669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 05/01/28 | 964000 |  | 910664 |
|  |  |  | 1662383 |
| **Lodging—0.1%** | **Lodging—0.1%** | **Lodging—0.1%** | **Lodging—0.1%** |
|  Full House Resorts, Inc. <br>8.250%, 02/15/28 (144A) | 253000 |  | 223983 |
|  Grupo Posadas S,A.B. de. C.V. <br>4.000%, 12/30/27 | 128810 |  | 100557 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 09/15/25 (144A) | 353000 |  | 363812 |
|  Sonder Holdings, Inc. <br>12.890%, SOFR + 9.000%, 01/19/27 (a) (i) (j) | 1493524 |  | 1346113 |
|  Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. <br>5.500%, 03/01/25 (144A) | 178000 |  | 168984 |
|  |  |  | 2203449 |
| **Machinery-Diversified—0.1%** | **Machinery-Diversified—0.1%** | **Machinery-Diversified—0.1%** | **Machinery-Diversified—0.1%** |
|  CNH Industrial Capital LLC <br>4.200%, 01/15/24 | 2628000 |  | 2590269 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Machinery-Diversified—(Continued)** | **Machinery-Diversified—(Continued)** | **Machinery-Diversified—(Continued)** | **Machinery-Diversified—(Continued)** |
|  TK Elevator U.S. Newco, Inc. <br>5.250%, 07/15/27 (144A) | 926000 | $| 821862 |
|  |  |  | 3412131 |
| **Media—1.0%** | **Media—1.0%** | **Media—1.0%** | **Media—1.0%** |
|  Charter Communications Operating LLC / Charter Communications Operating Capital Corp. <br>3.500%, 03/01/42 | 436000 |  | 279370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 04/01/51 | 461000 |  | 280319 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 04/01/61 | 1217000 |  | 703865 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.900%, 06/01/52 | 3340000 |  | 2096940 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 06/30/62 | 2119000 |  | 1249998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, 03/01/50 | 855000 |  | 620686 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/01/49 | 1766000 |  | 1335382 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 05/01/47 | 1617000 |  | 1268444 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 04/01/48 | 1276000 |  | 1044649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.484%, 10/23/45 | 315000 |  | 284059 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.834%, 10/23/55 | 994000 |  | 917002 |
|  Comcast Corp. <br>1.500%, 02/15/31 | 365000 |  | 284189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.950%, 01/15/31 | 483000 |  | 390401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, 02/01/30 | 4030000 |  | 3486428 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.800%, 01/15/51 | 677000 |  | 427258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.937%, 11/01/56 | 600000 |  | 371055 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.987%, 11/01/63 | 352000 |  | 212839 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 04/01/40 | 1381000 |  | 1138945 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 08/15/34 | 1568000 |  | 1447588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 01/15/33 | 1833000 |  | 1727707 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/15/32 | 1871000 |  | 1950879 |
|  COX Communications, Inc. <br>2.950%, 10/01/50 (144A) | 1239000 |  | 742844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 08/15/24 (144A) | 1381000 |  | 1329026 |
|  CSC Holdings LLC <br>5.250%, 06/01/24 (f) | 176000 |  | 163859 |
|  Discovery Communications LLC <br>1.900%, 03/19/27 (EUR) | 1149000 |  | 1109816 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/15/55 | 355000 |  | 213309 |
|  FactSet Research Systems, Inc. <br>3.450%, 03/01/32 | 2033000 |  | 1704471 |
|  Grupo Televisa S.A.B. <br>6.625%, 01/15/40 | 100000 |  | 102745 |
|  Nexstar Media, Inc. <br>4.750%, 11/01/28 (144A) | 433000 |  | 374545 |
|  Paramount Global <br>4.850%, 07/01/42 | 500000 |  | 369886 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, 08/15/44 | 401000 |  | 292869 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.850%, 09/01/43 | 608000 |  | 504875 |
|  Walt Disney Co. (The) <br>2.750%, 09/01/49 | 886000 |  | 585996 |
|  |  |  | 29012244 |
| **Mining—0.4%** | **Mining—0.4%** | **Mining—0.4%** | **Mining—0.4%** |
| Anglo American Capital plc | Anglo American Capital plc | Anglo American Capital plc | Anglo American Capital plc |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 03/17/28 (144A) | 951000 |  | 799745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 09/10/30 (144A) | 2408000 |  | 1956945 |
| **Mining—(Continued)** | **Mining—(Continued)** | **Mining—(Continued)** | **Mining—(Continued)** |
| Anglo American Capital plc | Anglo American Capital plc | Anglo American Capital plc | Anglo American Capital plc |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 03/17/31 (144A) | 617000 |  | 503786 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 03/16/29 (144A) | 2106000 |  | 1890738 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/15/28 (144A) | 1264000 |  | 1195451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 04/01/30 (144A) | 1679000 |  | 1666804 |
|  Fresnillo plc <br>4.250%, 10/02/50 | 218000 |  | 171625 |
|  Glencore Funding LLC <br>2.500%, 09/01/30 (144A) (f) | 2438000 |  | 1978900 |
|  Minera Mexico S.A. de C.V. <br>4.500%, 01/26/50 | 220000 |  | 166100 |
|  Newmont Corp. <br>2.250%, 10/01/30 | 1069000 |  | 859198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.800%, 10/01/29 | 544000 |  | 462473 |
|  Vedanta Resources Finance II plc <br>8.950%, 03/11/25 (144A) | 412000 |  | 279645 |
|  |  |  | 11931410 |
| **Miscellaneous Manufacturing—0.1%** | **Miscellaneous Manufacturing—0.1%** | **Miscellaneous Manufacturing—0.1%** | **Miscellaneous Manufacturing—0.1%** |
|  Textron, Inc. <br>3.900%, 09/17/29 | 1540000 |  | 1394853 |
| **Oil & Gas—1.1%** | **Oil & Gas—1.1%** | **Oil & Gas—1.1%** | **Oil & Gas—1.1%** |
|  BP Capital Markets America, Inc. <br>3.001%, 03/17/52 (f) | 178000 |  | 117333 |
|  Cenovus Energy, Inc. <br>5.250%, 06/15/37 | 623000 |  | 567531 |
|  Colgate Energy Partners III LLC <br>5.875%, 07/01/29 (144A) | 240000 |  | 206128 |
|  Devon Energy Corp. <br>4.500%, 01/15/30 | 268000 |  | 249506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 05/15/42 | 804000 |  | 680575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 10/15/27 | 460000 |  | 455184 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.600%, 07/15/41 (f) | 854000 |  | 796723 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.850%, 12/15/25 | 90000 |  | 91624 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 06/15/28 | 73000 |  | 73831 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.250%, 08/01/23 | 334000 |  | 338547 |
|  Diamondback Energy, Inc. <br>3.125%, 03/24/31 | 1715000 |  | 1420125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 12/01/26 | 1149000 |  | 1068682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/29 | 10847000 |  | 9516305 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 03/24/51 (f) | 1350000 |  | 1028406 |
|  Earthstone Energy Holdings LLC <br>8.000%, 04/15/27 (144A) | 1264000 |  | 1209206 |
|  Ecopetrol S.A. <br>4.125%, 01/16/25 | 362000 |  | 344754 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 09/18/23 | 71000 |  | 70541 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 04/29/30 | 909000 |  | 824311 |
|  EQT Corp. <br>3.900%, 10/01/27 | 597000 |  | 551130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.700%, 04/01/28 | 954000 |  | 948874 |
|  Hess Corp. <br>7.125%, 03/15/33 | 242000 |  | 260647 |
|  Marathon Petroleum Corp. <br>5.850%, 12/15/45 | 360000 |  | 325797 |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Oil & Gas—(Continued)** | **Oil & Gas—(Continued)** | **Oil & Gas—(Continued)** | **Oil & Gas—(Continued)** |
|  MC Brazil Downstream Trading S.a.r.l. <br>7.250%, 06/30/31 (144A) | 430000 | $| 354579 |
|  Odebrecht Offshore Drilling Finance, Ltd. <br>7.720%, 12/01/26 (144A) (h) | 257 |  | 67 |
|  Petroleos Mexicanos <br>4.875%, 01/18/24 | 181000 |  | 176928 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/27/44 | 98000 |  | 57575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.700%, 02/16/32 | 298000 |  | 234004 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.750%, 09/21/47 | 134000 |  | 85492 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 10/16/25 | 224000 |  | 219273 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 08/04/26 | 105000 |  | 99169 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.190%, 09/12/24 (MXN) | 4225600 |  | 200584 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.750%, 06/02/29 | 634000 |  | 594496 |
|  Pioneer Natural Resources Co. <br>1.900%, 08/15/30 | 783000 |  | 613183 |
|  Puma International Financing S.A. <br>5.125%, 10/06/24 (144A) | 258000 |  | 240394 |
|  Shelf Drilling Holdings Ltd. <br>8.875%, 11/15/24 (144A) | 72000 |  | 70560 |
|  Shelf Drilling North Sea Holdings, Ltd. <br>10.250%, 10/31/25 (144A) | 730000 |  | 722700 |
|  Shell International Finance B.V. <br>2.750%, 04/06/30 | 586000 |  | 514159 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 11/13/28 | 1634000 |  | 1573540 |
|  Sitio Royalties Corp. <br>10.560%, SOFR + 6.750%, 09/21/26 (a) (i) (j) | 1990950 |  | 1953719 |
|  Sunoco L.P. / Sunoco Finance Corp. <br>4.500%, 04/30/30 | 616000 |  | 534719 |
|  Tap Rock Resouces LLC <br>7.000%, 10/01/26 (144A) | 1447000 |  | 1345855 |
|  YPF S.A. <br>7.000%, 09/30/33 | 19765 |  | 13114 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 12/15/47 (144A) | 235000 |  | 140929 |
|  |  |  | 30890799 |
| **Packaging & Containers—0.1%** | **Packaging & Containers—0.1%** | **Packaging & Containers—0.1%** | **Packaging & Containers—0.1%** |
|  Ardagh Metal Packaging Finance U.S.A. LLC / Ardagh Metal Packaging Finance plc <br>3.250%, 09/01/28 (144A) (f) | 738000 |  | 626890 |
|  Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc. <br>5.250%, 04/30/25 (144A) (f) | 738000 |  | 702383 |
|  Klabin Austria GmbH <br>3.200%, 01/12/31 (144A) | 340000 |  | 272000 |
|  Trivium Packaging Finance B.V. <br>5.500%, 08/15/26 (144A) | 317000 |  | 290669 |
|  |  |  | 1891942 |
| **Pharmaceuticals—0.6%** | **Pharmaceuticals—0.6%** | **Pharmaceuticals—0.6%** | **Pharmaceuticals—0.6%** |
|  AbbVie, Inc. <br>4.250%, 11/21/49 | 532000 |  | 441499 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.450%, 05/14/46 | 789000 |  | 678091 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/14/35 | 2514000 |  | 2328732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 03/15/35 | 1275000 |  | 1192226 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 05/14/45 | 916000 |  | 813592 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 03/15/45 | 472000 |  | 423877 |
| **Pharmaceuticals—(Continued)** | **Pharmaceuticals—(Continued)** | **Pharmaceuticals—(Continued)** | **Pharmaceuticals—(Continued)** |
|  Bausch Health Cos., Inc. <br>5.500%, 11/01/25 (144A) (f) | 176000 |  | 149515 |
|  Bristol-Myers Squibb Co. <br>3.700%, 03/15/52 | 1485000 |  | 1155114 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 02/20/48 | 469000 |  | 421702 |
|  Cigna Corp. <br>2.375%, 03/15/31 | 500000 |  | 409192 |
|  CVS Health Corp. <br>1.750%, 08/21/30 | 1360000 |  | 1071804 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 04/01/30 | 2089000 |  | 1894019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 04/01/50 | 610000 |  | 485508 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/20/45 | 1781000 |  | 1623212 |
|  Takeda Pharmaceutical Co., Ltd. <br>2.050%, 03/31/30 | 2709000 |  | 2211219 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/26/28 | 1770000 |  | 1754901 |
|  Viatris, Inc. <br>4.000%, 06/22/50 | 179000 |  | 110289 |
|  Wyeth LLC <br>6.500%, 02/01/34 | 250000 |  | 280228 |
|  |  |  | 17444720 |
| **Pipelines—2.0%** | **Pipelines—2.0%** | **Pipelines—2.0%** | **Pipelines—2.0%** |
|  Buckeye Partners L.P. <br>4.125%, 03/01/25 (144A) | 219000 |  | 208577 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.350%, 10/15/24 | 500000 |  | 481407 |
|  Cameron LNG LLC <br>2.902%, 07/15/31 (144A) | 569000 |  | 479979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.302%, 01/15/35 (144A) | 2930000 |  | 2358993 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.402%, 01/15/38 (144A) | 1949000 |  | 1582347 |
|  Cheniere Corpus Christi Holdings LLC <br>2.742%, 12/31/39 | 1981000 |  | 1531836 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 06/30/27 | 2021000 |  | 1996603 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 03/31/25 | 3740000 |  | 3762717 |
|  Cheniere Energy Partners L.P. <br>3.250%, 01/31/32 (f) | 2583000 |  | 2052727 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/31 | 471000 |  | 400991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/29 | 1450000 |  | 1303871 |
|  EIG Pearl Holdings Sarl <br>4.387%, 11/30/46 (144A) | 542000 |  | 416014 |
|  Energy Transfer L.P. <br>3.600%, 02/01/23 | 1243000 |  | 1240611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 04/01/24 | 1001000 |  | 982981 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/15/50 | 3292000 |  | 2630080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.350%, 05/15/45 | 690000 |  | 585146 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.400%, 10/01/47 | 323000 |  | 273600 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.100%, 02/15/42 | 353000 |  | 323675 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/01/42 | 1104000 |  | 1091169 |
|  Enterprise Products Operating LLC <br>2.800%, 01/31/30 | 382000 |  | 324518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 07/31/29 | 1738000 |  | 1530218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 01/31/51 | 383000 |  | 276103 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.700%, 02/15/42 | 594000 |  | 575328 |
| Kinder Morgan Energy Partners L.P.  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 11/01/42 | 332000 |  | 274267 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/15/42 | 317000 |  | 271329 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Pipelines—(Continued)** | **Pipelines—(Continued)** | **Pipelines—(Continued)** | **Pipelines—(Continued)** |
| Kinder Morgan Energy Partners L.P.  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/43 | 521000 | $| 445009 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/01/44 | 1284000 |  | 1161065 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.550%, 09/15/40 | 863000 |  | 864936 |
|  NGPL PipeCo LLC <br>3.250%, 07/15/31 (144A) | 2923000 |  | 2377577 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 08/15/27 (144A) | 990000 |  | 940255 |
|  Northwest Pipeline LLC <br>4.000%, 04/01/27 | 2030000 |  | 1918908 |
|  Sabine Pass Liquefaction LLC <br>5.625%, 03/01/25 | 7829000 |  | 7840058 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 05/15/24 | 3483000 |  | 3483841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 06/30/26 | 3400000 |  | 3440262 |
|  Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. <br>5.000%, 01/15/28 | 1525000 |  | 1454787 |
|  Texas Eastern Transmission L.P. <br>3.500%, 01/15/28 (144A) | 2123000 |  | 1929801 |
|  Transcontinental Gas Pipe Line Co. LLC <br>3.950%, 05/15/50 | 606000 |  | 460798 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/15/28 | 2280000 |  | 2139217 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, 03/15/48 | 848000 |  | 704788 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.850%, 02/01/26 | 721000 |  | 769498 |
|  Williams Cos., Inc. (The) <br>3.500%, 10/15/51 | 1115000 |  | 758816 |
|  |  |  | 57644703 |
| **Real Estate—0.1%** | **Real Estate—0.1%** | **Real Estate—0.1%** | **Real Estate—0.1%** |
|  Arabian Centres Sukuk II, Ltd. <br>5.625%, 10/07/26 (144A) | 315000 |  | 285085 |
|  Five Point Operating Co. L.P. / Five Point Capital Corp. <br>7.875%, 11/15/25 (144A) | 794000 |  | 667453 |
|  Freed Hotels & Resorts <br>10.000%, 12/02/23 (144A)† (i) (j) | 1158680 |  | 1115229 |
|  Howard Hughes Corp. (The) <br>5.375%, 08/01/28 (144A) (f) | 749000 |  | 674647 |
|  |  |  | 2742414 |
| **Real Estate Investment Trusts—1.8%** | **Real Estate Investment Trusts—1.8%** | **Real Estate Investment Trusts—1.8%** | **Real Estate Investment Trusts—1.8%** |
|  Alexandria Real Estate Equities, Inc. <br>2.000%, 05/18/32 | 1132000 |  | 866785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.950%, 03/15/34 | 1978000 |  | 1603182 |
|  American Tower Corp. <br>1.875%, 10/15/30 | 640000 |  | 493885 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.900%, 01/15/30 | 1039000 |  | 879894 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.100%, 06/15/50 | 176000 |  | 110746 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 08/15/29 | 2253000 |  | 2043861 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 03/15/29 | 456000 |  | 420367 |
|  Crown Castle, Inc. <br>2.100%, 04/01/31 | 593000 |  | 467369 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 01/15/31 | 2003000 |  | 1606870 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/15/31 | 825000 |  | 664831 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.100%, 11/15/29 | 1314000 |  | 1145343 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.300%, 07/01/30 | 1341000 |  | 1173098 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 02/15/28 | 1455000 |  | 1352228 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 02/15/29 | 1115000 |  | 1052938 |
| **Real Estate Investment Trusts—(Continued)** | **Real Estate Investment Trusts—(Continued)** | **Real Estate Investment Trusts—(Continued)** | **Real Estate Investment Trusts—(Continued)** |
|  Digital Dutch Finco B.V. <br>1.500%, 03/15/30 (EUR) | 1550000 |  | 1295295 |
|  Equinix, Inc. <br>2.150%, 07/15/30 | 2894000 |  | 2302291 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/15/31 | 685000 |  | 550392 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 11/18/29 (f) | 1958000 |  | 1704285 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.900%, 04/15/32 | 4632000 |  | 4115269 |
|  GLP Capital L.P. / GLP Financing II, Inc. <br>3.250%, 01/15/32 (f) | 2908000 |  | 2324611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/15/30 | 2544000 |  | 2228071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/15/31 | 2246000 |  | 1926619 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.300%, 01/15/29 (f) | 365000 |  | 345414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 06/01/28 | 320000 |  | 313769 |
|  Invitation Homes Operating Partnership L.P. <br>2.300%, 11/15/28 | 93000 |  | 76901 |
|  Kimco Realty Corp. <br>2.250%, 12/01/31 | 374000 |  | 287132 |
|  National Retail Properties, Inc. <br>3.100%, 04/15/50 | 473000 |  | 290045 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/15/51 | 1284000 |  | 858649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 10/15/28 | 432000 |  | 400784 |
|  Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co-Issuer <br>4.875%, 05/15/29 (144A) | 892000 |  | 755078 |
|  Prologis L.P. <br>1.750%, 02/01/31 | 1944000 |  | 1530305 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 04/15/30 | 354000 |  | 294922 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 01/15/33 | 814000 |  | 788007 |
|  Realty Income Corp. <br>3.250%, 01/15/31 | 920000 |  | 797793 |
|  Service Properties Trust <br>4.350%, 10/01/24 | 178000 |  | 161815 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/15/23 | 1350000 |  | 1326634 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/15/25 | 473000 |  | 407985 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/15/27 | 135000 |  | 116257 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 09/15/25 | 680000 |  | 647989 |
|  VICI Properties L.P. <br>4.750%, 02/15/28 | 2147000 |  | 2036789 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 02/15/30 | 4039000 |  | 3844794 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 05/15/32 | 968000 |  | 896320 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 05/15/52 | 354000 |  | 313138 |
|  VICI Properties L.P. / VICI Note Co., Inc. <br>3.750%, 02/15/27 (144A) (f) | 1522000 |  | 1381588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 08/15/30 (144A) | 434000 |  | 379822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 12/01/26 (144A) | 683000 |  | 637187 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 02/01/27 (144A) | 90000 |  | 87728 |
|  WP Carey, Inc. <br>2.400%, 02/01/31 | 612000 |  | 487623 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.450%, 02/01/32 | 401000 |  | 313345 |
|  XHR L.P. <br>4.875%, 06/01/29 (144A) | 137000 |  | 112220 |
|  |  |  | 50218263 |

---

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Retail—0.2%** | **Retail—0.2%** | **Retail—0.2%** |
|  Dick's Sporting Goods, Inc. <br>4.100%, 01/15/52 | 179000 | $115397 |
|  InRetail Consumer <br>3.250%, 03/22/28 (144A) | 330000 | 283762 |
|  Lowe's Cos., Inc. <br>2.800%, 09/15/41 | 397000 | 270159 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/15/50 | 176000 | 111961 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/30 | 3315000 | 3176932 |
|  SRS Distribution, Inc. <br>4.625%, 07/01/28 (144A) | 147000 | 130311 |
|  |  | 4088522 |
| **Semiconductors—1.1%** | **Semiconductors—1.1%** | **Semiconductors—1.1%** |
|  Applied Materials, Inc. <br>4.350%, 04/01/47 | 316000 | 284140 |
|  Broadcom, Inc. <br>2.450%, 02/15/31 (144A) | 432000 | 340251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.187%, 11/15/36 (144A) | 1862000 | 1337452 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.419%, 04/15/33 (144A) | 4010000 | 3214848 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.469%, 04/15/34 (144A) | 3384000 | 2699527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/15/41 (144A) | 132000 | 93724 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 02/15/51 (144A) | 176000 | 121507 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 11/15/32 | 1794000 | 1581125 |
|  Intel Corp. <br>3.734%, 12/08/47 | 1228000 | 920292 |
|  KLA Corp. <br>3.300%, 03/01/50 | 2305000 | 1669152 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/15/49 | 318000 | 296367 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 07/15/62 | 1670000 | 1603658 |
|  Lam Research Corp. <br>2.875%, 06/15/50 | 624000 | 416964 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 03/15/49 | 762000 | 721418 |
|  Micron Technology, Inc. <br>2.703%, 04/15/32 | 384000 | 287127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.477%, 11/01/51 | 179000 | 111190 |
|  NVIDIA Corp. <br>3.500%, 04/01/50 | 501000 | 378134 |
|  NXP B.V. / NXP Funding LLC / NXP USA, Inc. <br>2.500%, 05/11/31 | 4079000 | 3248842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, 02/15/32 | 1710000 | 1338320 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 11/30/51 | 179000 | 111463 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.400%, 05/01/30 | 2168000 | 1873465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 06/18/29 | 3699000 | 3448574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/15/33 | 1265000 | 1194654 |
|  QUALCOMM, Inc. <br>4.500%, 05/20/52 | 408000 | 357312 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.400%, 05/20/33 | 1536000 | 1599160 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/20/53 | 1429000 | 1517699 |
|  |  | 30766365 |
| **Shipbuilding—0.0%** | **Shipbuilding—0.0%** | **Shipbuilding—0.0%** |
|  Huntington Ingalls Industries, Inc. <br>2.043%, 08/16/28 | 404000 | 332996 |
| **Software—0.8%** | **Software—0.8%** | **Software—0.8%** |
|  Autodesk, Inc. <br>2.400%, 12/15/31 | 426000 | 340299 |
|  Electronic Arts, Inc. <br>1.850%, 02/15/31 | 643000 | 505389 |
|  Fidelity National Information Services, Inc. <br>1.000%, 12/03/28 (EUR) | 1463000 | 1301941 |
|  Microsoft Corp. <br>2.921%, 03/17/52 | 489000 | 345968 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 02/06/47 | 795000 | 745372 |
|  Oracle Corp. <br>3.600%, 04/01/40 | 7123000 | 5225510 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 04/01/50 | 3085000 | 2077028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 03/25/41 | 1608000 | 1187015 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 11/15/37 | 718000 | 568506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 04/01/60 | 176000 | 116940 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 03/25/51 | 1349000 | 961081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/46 | 4072000 | 2967422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/15/47 | 967000 | 706776 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.900%, 11/09/52 | 402000 | 430069 |
|  Playtika Holding Corp. <br>4.250%, 03/15/29 (144A) | 161000 | 126377 |
|  salesforce.com, Inc. <br>3.050%, 07/15/61 | 656000 | 416544 |
|  ServiceNow, Inc. <br>1.400%, 09/01/30 | 2335000 | 1786314 |
|  VMware, Inc. <br>2.200%, 08/15/31 | 2910000 | 2208294 |
|  Workday, Inc. <br>3.800%, 04/01/32 (f) | 327000 | 288655 |
|  |  | 22305500 |
| **Telecommunications—1.7%** | **Telecommunications—1.7%** | **Telecommunications—1.7%** |
|  AT&T, Inc. <br>3.500%, 06/01/41 | 367000 | 273684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/15/53 | 757000 | 510927 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.550%, 09/15/55 | 1709000 | 1140319 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 06/01/51 | 526000 | 370468 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 09/15/59 | 3279000 | 2194736 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.350%, 03/01/29 | 1399000 | 1330403 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/15/35 | 4468000 | 4061630 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/09/48 | 534000 | 434783 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.650%, 06/01/44 | 340000 | 285400 |
|  Axtel S.A.B. de CV <br>6.375%, 11/14/24 (144A) | 451000 | 368888 |
|  Digicel Group Holdings, Ltd. <br>8.000%, 04/01/25 (144A) (h) | 295601 | 79110 |
|  Digicel International Finance, Ltd. / Digicel Holdings Bermuda, Ltd. <br>8.000%, 12/31/26 (144A) | 48530 | 21353 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.750%, 05/25/24 (144A) | 121567 | 104548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 13.000%, 12/31/25 (144A) (h) | 73953 | 38086 |
|  Juniper Networks, Inc. <br>2.000%, 12/10/30 | 723000 | 550380 |
|  Kenbourne Invest S.A. <br>4.700%, 01/22/28 (144A) | 210000 | 163800 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 11/26/24 (144A) | 310000 | 295120 |

---

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Telecommunications—(Continued)** | **Telecommunications—(Continued)** | **Telecommunications—(Continued)** | **Telecommunications—(Continued)** |
|  Motorola Solutions, Inc. <br>2.300%, 11/15/30 | 1312000 | $| 1025922 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 05/24/31 | 3869000 |  | 3093427 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, 05/23/29 | 1097000 |  | 1044045 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/01/44 | 1330000 |  | 1197509 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.600%, 06/01/32 | 2749000 |  | 2676006 |
|  Oi S.A. <br>10.000%, 07/27/25 (h) | 227000 |  | 38738 |
|  Rogers Communications, Inc. <br>3.800%, 03/15/32 (144A) | 3262000 |  | 2814954 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 03/15/52 (144A) | 436000 |  | 338025 |
|  T-Mobile USA, Inc. <br>2.625%, 04/15/26 | 620000 |  | 568175 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 02/15/29 | 502000 |  | 424958 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.300%, 02/15/51 | 265000 |  | 176846 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 04/15/29 | 3707000 |  | 3265013 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.400%, 10/15/52 | 265000 |  | 178066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 11/15/60 | 179000 |  | 118189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 04/15/30 | 3854000 |  | 3491010 |
|  Verizon Communications, Inc. <br>1.500%, 09/18/30 | 4119000 |  | 3202251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 01/20/31 | 4489000 |  | 3482739 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.355%, 03/15/32 | 1840000 |  | 1458572 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.550%, 03/21/31 (f) | 2511000 |  | 2064942 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, 11/20/40 | 3041000 |  | 2052626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.850%, 09/03/41 | 615000 |  | 423244 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 11/20/50 | 1745000 |  | 1094044 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.987%, 10/30/56 | 353000 |  | 215365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/60 | 1493000 |  | 888966 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 03/22/30 | 996000 |  | 878314 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 11/01/42 | 887000 |  | 702979 |
|  |  |  | 49138560 |
| **Tobacco—0.1%** | **Tobacco—0.1%** | **Tobacco—0.1%** | **Tobacco—0.1%** |
|  Philip Morris International, Inc. <br>5.125%, 11/17/27 | 2501000 |  | 2519266 |
| **Transportation—0.4%** | **Transportation—0.4%** | **Transportation—0.4%** | **Transportation—0.4%** |
|  Burlington Northern Santa Fe LLC <br>2.875%, 06/15/52 | 427000 |  | 284669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.300%, 09/15/51 | 1338000 |  | 973819 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.150%, 04/01/45 | 401000 |  | 342416 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 05/01/40 | 517000 |  | 540886 |
|  CSX Corp. <br>3.350%, 09/15/49 | 611000 |  | 439591 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 03/01/48 | 705000 |  | 598428 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/15/49 | 400000 |  | 347887 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.650%, 03/01/68 | 614000 |  | 517317 |
|  Norfolk Southern Corp. <br>3.000%, 03/15/32 | 5000 |  | 4269 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.050%, 05/15/50 (f) | 1278000 |  | 855982 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.155%, 05/15/55 | 900000 |  | 595607 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 08/15/52 | 451000 |  | 361243 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 06/01/53 | 515000 |  | 447629 |
| **Transportation—(Continued)** | **Transportation—(Continued)** | **Transportation—(Continued)** | **Transportation—(Continued)** |
|  Simpar Europe S.A. <br>5.200%, 01/26/31 (144A) | 520000 |  | 393900 |
|  Union Pacific Corp. <br>2.973%, 09/16/62 | 988000 |  | 634631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.550%, 05/20/61 | 461000 |  | 335550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 02/05/70 | 778000 |  | 567120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.839%, 03/20/60 | 449000 |  | 346844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 08/15/59 | 337000 |  | 262644 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.150%, 01/20/63 | 300000 |  | 288197 |
|  Union Pacific Railroad Co. Pass-Through Trust <br>3.227%, 05/14/26 | 603761 |  | 572965 |
|  |  |  | 9711594 |
| **Trucking & Leasing—0.2%** | **Trucking & Leasing—0.2%** | **Trucking & Leasing—0.2%** | **Trucking & Leasing—0.2%** |
|  Penske Truck Leasing Co. L.P. / PTL Finance Corp. <br>1.700%, 06/15/26 (144A) | 1921000 |  | 1680466 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 03/10/25 (144A) | 1414000 |  | 1362035 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 04/01/27 (144A) | 793000 |  | 744037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 11/15/27 (144A) | 2266000 |  | 2281903 |
|  |  |  | 6068441 |
|  Total Corporate Bonds & Notes<br>(Cost $827,167,845) |  |  | 743888473 |
| **Asset-Backed Securities—11.6%** | **Asset-Backed Securities—11.6%** | **Asset-Backed Securities—11.6%** | **Asset-Backed Securities—11.6%** |
| **Asset-Backed - Credit Card—0.0%** | **Asset-Backed - Credit Card—0.0%** | **Asset-Backed - Credit Card—0.0%** | **Asset-Backed - Credit Card—0.0%** |
|  Brex Commercial Charge Card Master Trust <br>2.090%, 07/15/24 (144A) | 850000 |  | 840778 |
| **Asset-Backed - Home Equity—0.6%** | **Asset-Backed - Home Equity—0.6%** | **Asset-Backed - Home Equity—0.6%** | **Asset-Backed - Home Equity—0.6%** |
|  ACE Securities Corp. Home Equity Loan Trust |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 08/15/30 | 614343 |  | 458951 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.649%, 1M LIBOR + 0.260%, 05/25/37 (a) | 1037250 |  | 181213 |
|  Bayview Financial Revolving Asset Trust <br>5.389%, 1M LIBOR + 1.000%, 05/28/39 (144A) (a) | 3755473 |  | 2937119 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.389%, 1M LIBOR + 1.000%, 12/28/40 (144A) (a) | 180372 |  | 181087 |
|  Bear Stearns Asset-Backed Securities Trust <br>4.739%, 1M LIBOR + 0.350%, 04/25/37 (a) | 2510996 |  | 2459150 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.114%, 1M LIBOR + 1.725%, 08/25/34 (a) | 16229 |  | 15918 |
|  Citigroup Mortgage Loan Trust <br>4.589%, 1M LIBOR + 0.200%, 05/25/37 (a) | 1731820 |  | 1184453 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.659%, 1M LIBOR + 0.270%, 05/25/37 (a) | 786668 |  | 538792 |
|  Countrywide Home Equity Loan Trust <br>6.155%, 06/25/35 | 50984 |  | 60956 |
|  Credit Suisse Mortgage Capital Certificates <br>2.465%, 09/27/66 (144A) (a) | 4200587 |  | 3994756 |
|  Home Equity Mortgage Loan Asset-Backed Trust <br>3.611%, 1M LIBOR + 2.025%, 07/25/34 (a) | 138664 |  | 132669 |
|  Home Equity Mortgage Trust <br>5.867%, 07/25/36 (l) | 477234 |  | 56949 |
|  Irwin Home Equity Loan Trust <br>6.530%, 09/25/37 (144A) (l) | 54306 |  | 49915 |
|  MASTR Asset-Backed Securities Trust <br>4.669%, 1M LIBOR + 0.280%, 05/25/37 (a) | 621846 |  | 473384 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.909%, 1M LIBOR + 0.520%, 06/25/36 (144A) (a) | 356163 |  | 319226 |

---

*See accompanying notes to financial statements.* 

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Home Equity—(Continued)** | **Asset-Backed - Home Equity—(Continued)** | **Asset-Backed - Home Equity—(Continued)** | **Asset-Backed - Home Equity—(Continued)** |
|  Option One Mortgage Loan Trust <br>4.599%, 1M LIBOR + 0.210%, 03/25/37 (a) | 930000 | $| 719113 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.820%, 03/25/37 (l) | 851559 |  | 739053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.866%, 01/25/37 (l) | 2486610 |  | 2048805 |
|  Yale Mortgage Loan Trust <br>4.789%, 1M LIBOR + 0.400%, 06/25/37 (144A) (a) | 751160 |  | 247117 |
|  |  |  | 16798626 |
| **Asset-Backed - Manufactured Housing—0.3%** | **Asset-Backed - Manufactured Housing—0.3%** | **Asset-Backed - Manufactured Housing—0.3%** | **Asset-Backed - Manufactured Housing—0.3%** |
|  Bank of America Manufactured Housing Contract Trust <br>7.070%, 02/10/22 (a) | 470000 |  | 141485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.333%, 12/10/25 (a) | 4000000 |  | 982668 |
|  BCMSC Trust <br>7.575%, 06/15/30 (a) | 1270292 |  | 177177 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.830%, 06/15/30 (a) | 1178847 |  | 169957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.290%, 06/15/30 (a) | 850435 |  | 129812 |
|  Cascade MH Asset Trust <br>4.000%, 11/25/44 (144A) (a) | 1823190 |  | 1705098 |
|  Conseco Finance Corp. <br>6.280%, 09/01/30 | 31412 |  | 31388 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.830%, 04/01/30 (a) | 107136 |  | 96174 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.980%, 09/01/30 (a) | 871646 |  | 779802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 03/01/30 (a) | 369891 |  | 150851 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.860%, 03/01/30 (a) | 345395 |  | 146416 |
|  Conseco Finance Securitizations Corp. <br>7.960%, 05/01/31 | 881149 |  | 277767 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.060%, 09/01/29 (a) | 586391 |  | 130388 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.200%, 05/01/31 | 1610098 |  | 522712 |
|  Credit Suisse First Boston Mortgage Securities Corp. <br>8.100%, 09/25/31 (a) | 373203 |  | 357486 |
|  Credit-Based Asset Servicing & Securitization LLC <br>6.250%, 10/25/36 (144A) (l) | 203821 |  | 192715 |
|  Greenpoint Manufactured Housing <br>8.290%, 12/15/29 (a) | 220636 |  | 219143 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.230%, 12/15/29 (a) | 363730 |  | 312755 |
|  Lehman ABS Manufactured Housing Contract Trust <br>6.630%, 04/15/40 (a) | 964641 |  | 955414 |
|  Oakwood Mortgage Investors, Inc. <br>6.930%, 09/15/31 (a) | 173601 |  | 99244 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.620%, 06/15/32 (a) | 829494 |  | 802837 |
|  Origen Manufactured Housing Contract Trust <br>5.518%, 1M LIBOR + 1.200%, 10/15/37 (144A) (a) | 251617 |  | 250918 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.820%, 03/15/32 (a) | 234091 |  | 211219 |
|  |  |  | 8843426 |
| **Asset-Backed - Other—9.9%** | **Asset-Backed - Other—9.9%** | **Asset-Backed - Other—9.9%** | **Asset-Backed - Other—9.9%** |
|  510 Loan Acquisition Trust <br>5.107%, 09/25/60 (144A) (l) | 893958 |  | 848820 |
|  522 Funding CLO, Ltd. <br>6.643%, 3M LIBOR + 2.400%, 04/20/30 (144A) (a) | 625000 |  | 597123 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.893%, 3M LIBOR + 3.650%, 04/20/30 (144A) (a) | 360000 |  | 331141 |
|  AGL CLO, Ltd. <br>5.403%, 3M LIBOR + 1.160%, 07/20/34 (144A) (a) | 1310000 |  | 1276878 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.428%, 3M LIBOR + 1.150%, 12/02/34 (144A) (a) | 1330000 |  | 1293891 |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  AGL Core CLO, Ltd. <br>5.313%, 3M LIBOR + 1.070%, 04/20/33 (144A) (a) | 860000 |  | 839170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.393%, 3M LIBOR + 1.150%, 01/20/35 (144A) (a) | 250000 |  | 243485 |
|  AIG CLO, Ltd. <br>5.363%, 3M LIBOR + 1.120%, 04/20/32 (144A) (a) | 250000 |  | 245983 |
|  AIMCO CLO <br>5.179%, 3M LIBOR + 1.100%, 01/15/32 (144A) (a) | 940000 |  | 923053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.679%, 3M LIBOR + 1.600%, 10/17/34 (144A) (a) | 250000 |  | 240870 |
|  Allegro CLO, Ltd. <br>5.358%, 3M LIBOR + 1.080%, 10/21/28 (144A) (a) | 1035396 |  | 1023149 |
|  ALM, Ltd. <br>5.929%, 3M LIBOR + 1.850%, 10/15/29 (144A) (a) | 1220000 |  | 1187476 |
|  ALME Loan Funding V B.V. <br>6.788%, 3M EURIBOR + 5.410%, 07/15/31 (144A) (EUR) (a) | 270000 |  | 235545 |
|  AMMC CLO, Ltd. <br>5.375%, 3M LIBOR + 1.050%, 07/24/29 (144A) (a) | 393905 |  | 390569 |
|  Anchorage Capital CLO, Ltd. <br>5.129%, 3M LIBOR + 1.050%, 07/15/30 (144A) (a) | 889946 |  | 878599 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.191%, 3M LIBOR + 1.250%, 10/13/30 (144A) (a) | 835000 |  | 825914 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.249%, 3M LIBOR + 1.170%, 07/15/34 (144A) (a) | 1890000 |  | 1844719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.464%, 3M LIBOR + 1.090%, 01/28/31 (144A) (a) | 830000 |  | 819404 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.529%, 3M LIBOR + 1.450%, 01/15/30 (144A) (a) | 2410000 |  | 2362448 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.874%, 3M LIBOR + 1.500%, 01/28/31 (144A) (a) | 1270000 |  | 1240719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.929%, 3M LIBOR + 1.850%, 01/15/30 (144A) (a) | 1010000 |  | 976268 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.091%, 3M LIBOR + 2.150%, 10/13/30 (144A) (a) | 590000 |  | 567951 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.124%, 3M LIBOR + 1.750%, 01/28/31 (144A) (a) | 1480000 |  | 1431679 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.158%, 3M LIBOR + 1.800%, 10/27/34 (144A) (a) | 1050000 |  | 1013939 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.224%, 3M LIBOR + 1.850%, 01/28/31 (144A) (a) | 1740000 |  | 1652161 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.874%, 3M LIBOR + 3.500%, 01/28/31 (144A) (a) | 250000 |  | 227962 |
|  Antares CLO Trust <br>5.888%, 3M LIBOR + 1.530%, 07/25/33 (144A) (a) | 1820000 |  | 1756402 |
|  Apidos CLO <br>5.743%, 3M LIBOR + 1.500%, 04/20/31 (144A) (a) | 250000 |  | 242260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.144%, 3M LIBOR + 1.950%, 07/18/29 (144A) (a) | 250000 |  | 239751 |
|  Aqua Finance Trust <br>2.400%, 07/17/46 (144A) | 430000 |  | 361962 |
|  Ares CLO, Ltd. <br>5.249%, 3M LIBOR + 1.170%, 10/15/30 (144A) (a) | 390000 |  | 384734 |
|  Ares European CLO XII DAC <br>3.156%, 3M EURIBOR + 1.700%, 04/20/32 (144A) (EUR) (a) | 297000 |  | 298235 |
|  Ares LII CLO, Ltd. <br>5.375%, 3M LIBOR + 1.050%, 04/22/31 (144A) (a) | 1330000 |  | 1305017 |
|  Ares LIX CLO, Ltd. <br>5.388%, 3M LIBOR + 1.030%, 04/25/34 (144A) (a) | 250000 |  | 242855 |
|  Ares LVI CLO, Ltd. <br>5.518%, 3M LIBOR + 1.160%, 10/25/34 (144A) (a) | 350000 |  | 338674 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.858%, 3M LIBOR + 6.500%, 10/25/34 (144A) (a) | 280000 |  | 249631 |
|  ARM Master Trust Corp. <br>2.430%, 11/15/27 (144A) | 370000 |  | 340850 |
|  Armada Euro CLO IV DAC <br>4.678%, 3M EURIBOR + 3.300%, 07/15/31 (144A) (EUR) (a) | 250000 |  | 232364 |
|  Assurant CLO, Ltd. <br>5.283%, 3M LIBOR + 1.040%, 04/20/31 (144A) (a) | 500000 |  | 488840 |

---

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Avoca CLO <br>2.678%, 3M EURIBOR + 1.300%, 04/15/35 (EUR) (a) | 150000 | $147502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.278%, 3M EURIBOR + 2.900%, 04/15/35 (144A) (EUR) (a) | 250000 | 222880 |
|  Babson CLO, Ltd. <br>5.643%, 3M LIBOR + 1.400%, 01/20/31 (144A) (a) | 250000 | 241702 |
|  Bain Capital Credit CLO <br>5.743%, 3M LIBOR + 1.500%, 07/20/30 (144A) (a) | 250000 | 239280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.827%, 3M LIBOR + 1.600%, 07/19/31 (144A) (a) | 250000 | 241235 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.425%, 3M LIBOR + 3.100%, 07/24/34 (144A) (a) | 250000 | 221420 |
|  Bankers Healthcare Group Securitization Trust <br>5.170%, 09/17/31 (144A) | 100000 | 91525 |
|  Bardot CLO, Ltd. <br>7.325%, 3M LIBOR + 3.000%, 10/22/32 (144A) (a) | 250000 | 227389 |
|  Barings CLO, Ltd. <br>5.313%, 3M LIBOR + 1.070%, 04/20/31 (144A) (a) | 250000 | 245454 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.433%, 3M LIBOR + 1.190%, 10/20/30 (144A) (a) | 870000 | 858566 |
|  Battalion CLO, Ltd. <br>5.259%, 3M LIBOR + 1.180%, 07/15/34 (144A) (a) | 730000 | 707768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.264%, 3M LIBOR + 1.070%, 07/18/30 (144A) (a) | 1267376 | 1245433 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.495%, 3M LIBOR + 1.170%, 01/25/35 (144A) (a) | 6220000 | 6052632 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.744%, 3M LIBOR + 1.550%, 07/18/30 (144A) (a) | 642000 | 617973 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.829%, 3M LIBOR + 1.750%, 10/15/36 (144A) (a) | 298000 | 282015 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 3M LIBOR + 1.550%, 01/25/35 (144A) (a) | 480000 | 462578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.045%, 3M LIBOR + 1.720%, 04/24/34 (144A) (a) | 250000 | 239149 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.393%, 3M LIBOR + 6.150%, 10/20/31 (144A) (a) | 250000 | 220311 |
|  Benefit Street Partners CLO, Ltd. <br>5.333%, 3M LIBOR + 1.090%, 04/20/31 (144A) (a) | 1030000 | 1013536 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.343%, 3M LIBOR + 1.100%, 01/20/31 (144A) (a) | 2000000 | 1972638 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.433%, 3M LIBOR + 1.190%, 07/20/34 (144A) (a) | 3800000 | 3699106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.893%, 3M LIBOR + 1.650%, 07/20/29 (144A) (a) | 290000 | 284435 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.079%, 3M LIBOR + 2.000%, 10/15/30 (144A) (a) | 270000 | 256037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.829%, 3M LIBOR + 6.750%, 07/15/34 (144A) (a) | 250000 | 227336 |
|  BHG Securitization Trust <br>2.240%, 10/17/34 (144A) | 130000 | 102320 |
|  BlueMountain CLO, Ltd. <br>5.339%, 3M LIBOR + 1.260%, 04/15/34 (144A) (a) | 100000 | 97578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.505%, 3M LIBOR + 1.180%, 10/22/30 (144A) (a) | 745093 | 734357 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.579%, 3M LIBOR + 1.500%, 07/15/31 (144A) (a) | 660000 | 640158 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.925%, 3M LIBOR + 2.250%, 08/20/32 (144A) (a) | 260000 | 249732 |
|  BlueMountain EUR CLO DAC <br>3.128%, 3M EURIBOR + 1.750%, 10/15/35 (144A) (EUR) (a) | 560000 | 547787 |
|  Bridge Street CLO II, Ltd. <br>5.473%, 3M LIBOR + 1.230%, 07/20/34 (144A) (a) | 250000 | 241538 |
|  Buttermilk Park CLO, Ltd. <br>5.179%, 3M LIBOR + 1.100%, 10/15/31 (144A) (a) | 250000 | 245957 |
|  C-BASS Trust <br>4.709%, 1M LIBOR + 0.320%, 10/25/36 (a) | 164879 | 108687 |
|  Canyon Capital CLO, Ltd. <br>5.179%, 3M LIBOR + 1.100%, 04/15/32 (144A) (a) | 460000 | 451579 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.779%, 3M LIBOR + 1.700%, 01/15/34 (144A) (a) | 290000 | 279692 |
|  Carlyle Global Market Strategies CLO, Ltd. <br>5.049%, 3M LIBOR + 0.970%, 04/17/31 (144A) (a) | 967060 | 950790 |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Carlyle U.S. CLO, Ltd. <br>5.239%, 3M LIBOR + 1.160%, 07/15/34 (144A) (a) | 610000 | 595600 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.259%, 3M LIBOR + 1.180%, 01/15/30 (144A) (a) | 1550000 | 1524679 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.393%, 3M LIBOR + 1.150%, 10/20/34 (144A) (a) | 710000 | 689471 |
|  Carrington Mortgage Loan Trust <br>4.549%, 1M LIBOR + 0.160%, 10/25/36 (a) | 164548 | 157199 |
|  CarVal CLO, Ltd. <br>7.443%, 3M LIBOR + 3.200%, 04/20/32 (144A) (a) | 870000 | 799857 |
|  CBAM, Ltd. <br>5.493%, 3M LIBOR + 1.250%, 07/20/30 (144A) (a) | 1993487 | 1972454 |
|  Cedar Funding CLO, Ltd. <br>5.179%, 3M LIBOR + 1.100%, 07/17/31 (144A) (a) | 770000 | 754903 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.223%, 3M LIBOR + 0.980%, 04/20/31 (144A) (a) | 380000 | 374560 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.293%, 3M LIBOR + 1.050%, 04/20/34 (144A) (a) | 3020000 | 2916085 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.323%, 3M LIBOR + 1.080%, 04/20/34 (144A) (a) | 535000 | 517655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.593%, 3M LIBOR + 1.350%, 04/20/34 (144A) (a) | 510000 | 477582 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.086%, 3M LIBOR + 1.350%, 05/29/32 (144A) (a) | 250000 | 239524 |
|  Chase Funding Trust <br>6.333%, 04/25/32 (l) | 52776 | 52172 |
|  CIFC Funding, Ltd. <br>5.129%, 3M LIBOR + 1.050%, 07/15/33 (144A) (a) | 1100000 | 1082744 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.194%, 3M LIBOR + 1.000%, 04/18/31 (144A) (a) | 1289000 | 1269911 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.219%, 3M LIBOR + 1.140%, 07/15/34 (144A) (a) | 280000 | 271143 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.229%, 3M LIBOR + 1.150%, 07/15/36 (144A) (a) | 250000 | 244297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.288%, 3M LIBOR + 1.010%, 04/23/29 (144A) (a) | 1096754 | 1085847 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.373%, 3M LIBOR + 1.130%, 10/20/34 (144A) (a) | 1190000 | 1161083 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.829%, 3M LIBOR + 1.750%, 07/16/30 (144A) (a) | 250000 | 243735 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.958%, 3M LIBOR + 1.600%, 04/27/31 (144A) (a) | 250000 | 243763 |
|  Citigroup Mortgage Loan Trust <br>4.559%, 1M LIBOR + 0.170%, 07/25/45 (a) | 604457 | 429667 |
|  Clear Creek CLO <br>5.443%, 3M LIBOR + 1.200%, 10/20/30 (144A) (a) | 250000 | 246493 |
|  Clontarf Park CLO DAC <br>4.782%, 3M EURIBOR + 3.050%, 08/05/30 (EUR) (a) | 310000 | 299545 |
|  Credit-Based Asset Servicing & Securitization LLC <br>3.024%, 12/25/36 (l) | 148314 | 116245 |
|  Crown Point CLO 10, Ltd. <br>5.413%, 3M LIBOR + 1.170%, 07/20/34 (144A) (a) | 620000 | 605108 |
|  CVC Cordatus Loan Fund DAC <br>3.121%, 3M EURIBOR + 1.300%, 02/22/34 (EUR) (a) | 250000 | 246914 |
|  CWABS Asset-Backed Certificates Trust <br>4.533%, 04/25/36 (a) | 787004 | 678278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.549%, 1M LIBOR + 0.160%, 09/25/46 (a) | 9291 | 9242 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.649%, 1M LIBOR + 0.260%, 12/25/36 (a) | 285750 | 260659 |
|  CWHEQ Revolving Home Equity Loan Resecuritization Trust <br>4.618%, 1M LIBOR + 0.300%, 12/15/33 (144A) (a) | 105820 | 105476 |
|  CWHEQ Revolving Home Equity Loan Trust <br>4.468%, 1M LIBOR + 0.150%, 11/15/36 (a) | 168196 | 162759 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.498%, 1M LIBOR + 0.180%, 05/15/35 (a) | 71779 | 70460 |
|  Diameter Capital CLO, Ltd. <br>5.319%, 3M LIBOR + 1.240%, 07/15/36 (144A) (a) | 250000 | 239813 |
|  Dryden 45 Senior Loan Fund <br>5.779%, 3M LIBOR + 1.700%, 10/15/30 (144A) (a) | 540000 | 527717 |
|  Dryden 87 CLO, Ltd. <br>5.775%, 3M LIBOR + 1.100%, 05/20/34 (144A) (a) | 400000 | 390372 |

---

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Dryden CLO, Ltd. <br>5.199%, 3M LIBOR + 1.120%, 01/15/31 (144A) (a) | 6020000 | $5951811 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.794%, 3M LIBOR + 1.600%, 07/18/30 (144A) (a) | 250000 | 242368 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.795%, 3M LIBOR + 1.120%, 05/20/34 (144A) (a) | 610000 | 593207 |
|  Dryden Senior Loan Fund <br>5.283%, 3M LIBOR + 1.040%, 04/20/34 (144A) (a) | 910000 | 882187 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.806%, 3M LIBOR + 1.200%, 08/15/30 (144A) (a) | 2195431 | 2168225 |
|  Eaton Vance CLO, Ltd. <br>6.279%, 3M LIBOR + 2.200%, 10/15/30 (144A) (a) | 710000 | 674921 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.579%, 3M LIBOR + 6.500%, 04/15/31 (144A) (a) | 500000 | 454602 |
|  Elmwood CLO II, Ltd. <br>5.393%, 3M LIBOR + 1.150%, 04/20/34 (144A) (a) | 750000 | 732258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.893%, 3M LIBOR + 1.650%, 04/20/34 (144A) (a) | 250000 | 240977 |
| &nbsp;&nbsp;&nbsp;&nbsp; 11.043%, 3M LIBOR + 6.800%, 04/20/34 (144A) (a) | 250000 | 221950 |
|  Elmwood CLO X, Ltd. <br>5.283%, 3M LIBOR + 1.040%, 10/20/34 (144A) (a) | 1220000 | 1197951 |
|  Elmwood CLO, Ltd. <br>5.393%, 3M LIBOR + 1.150%, 01/20/35 (144A) (a) | 250000 | 242773 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.193%, 3M LIBOR + 1.950%, 10/20/34 (144A) (a) | 250000 | 236980 |
|  Euro-Galaxy CLO <br>4.752%, 3M EURIBOR + 3.250%, 04/24/34 (144A) (EUR) (a) | 290000 | 270720 |
|  Fairstone Financial Issuance Trust <br>3.735%, 10/20/39 (144A) (CAD) | 323000 | 225523 |
|  Fidelity Grand Harbour CLO DAC <br>4.978%, 3M EURIBOR + 3.600%, 10/15/34 (144A) (EUR) (a) | 250000 | 226356 |
|  First Franklin Mortgage Loan Trust <br>4.539%, 1M LIBOR + 0.150%, 12/25/36 (a) | 1611424 | 1458339 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.669%, 1M LIBOR + 0.280%, 12/25/36 (a) | 3922642 | 1673321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.809%, 1M LIBOR + 0.420%, 12/25/36 (a) | 7215945 | 3098195 |
|  Flatiron CLO, Ltd. <br>5.075%, 3M TSFR + 1.212%, 04/17/31 (144A) (a) | 270000 | 265632 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.337%, 3M LIBOR + 1.110%, 07/19/34 (144A) (a) | 2390000 | 2331557 |
|  Foundation Finance Trust <br>2.190%, 01/15/42 (144A) | 817930 | 747596 |
|  Fremont Home Loan Trust <br>4.669%, 1M LIBOR + 0.280%, 02/25/37 (a) | 713143 | 547632 |
|  FS Rialto <br>5.576%, 1M LIBOR + 1.250%, 11/16/36 (144A) (a) | 566000 | 539701 |
|  Galaxy CLO, Ltd. <br>5.179%, 3M LIBOR + 1.100%, 07/15/31 (144A) (a) | 250000 | 245542 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.279%, 3M LIBOR + 1.200%, 04/16/34 (144A) (a) | 660000 | 642854 |
|  Generate CLO, Ltd. <br>5.493%, 3M LIBOR + 1.250%, 10/20/29 (144A) (a) | 598506 | 592150 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.993%, 3M LIBOR + 1.750%, 10/20/29 (144A) (a) | 850000 | 833536 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.775%, 3M LIBOR + 2.450%, 01/22/35 (144A) (a) | 250000 | 235360 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.825%, 3M LIBOR + 3.500%, 01/22/35 (144A) (a) | 250000 | 233164 |
|  Gilbert Park CLO, Ltd. <br>7.029%, 3M LIBOR + 2.950%, 10/15/30 (144A) (a) | 861000 | 808451 |
|  GoldentTree Loan Management U.S. CLO, Ltd. <br>5.373%, 3M LIBOR + 1.130%, 10/20/34 (144A) (a) | 910000 | 886308 |
|  Goldman Home Improvement Trust Issuer Trust <br>1.970%, 06/25/51 (144A) | 403000 | 351758 |
|  Golub Capital BDC CLO LLC <br>6.879%, 3M LIBOR + 2.800%, 04/15/33 (144A) (a) | 250000 | 220999 |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Golub Capital Partners CLO 58B, Ltd. <br>5.538%, 3M LIBOR + 1.180%, 01/25/35 (144A) (a) | 270000 | 260746 |
|  Gracie Point International Funding <br>5.520%, 1M LIBOR + 1.400%, 11/01/23 (144A) (a) | 120000 | 119590 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.520%, 1M LIBOR + 2.400%, 11/01/23 (144A) (a) | 160000 | 159181 |
|  Great Lakes CLO, Ltd. <br>5.639%, 3M LIBOR + 1.560%, 07/15/31 (144A) (a) | 730000 | 717515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.779%, 3M LIBOR + 1.700%, 04/15/33 (144A) (a) | 420000 | 402825 |
|  Grippen Park CLO, Ltd. <br>7.543%, 3M LIBOR + 3.300%, 01/20/30 (144A) (a) | 250000 | 232787 |
|  Gulf Stream Meridian, Ltd. <br>5.279%, 3M LIBOR + 1.200%, 07/15/34 (144A) (a) | 1860000 | 1816500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.879%, 3M LIBOR + 1.800%, 07/15/34 (144A) (a) | 250000 | 241125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.429%, 3M LIBOR + 6.350%, 07/15/34 (144A) (a) | 250000 | 217719 |
|  Henley CLO DAC <br>2.893%, 3M EURIBOR + 1.350%, 04/25/34 (EUR) (a) | 100000 | 96682 |
|  Highbridge Loan Management, Ltd. <br>5.374%, 3M LIBOR + 1.180%, 07/18/29 (144A) (a) | 493892 | 489013 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.383%, 3M LIBOR + 1.140%, 04/20/34 (144A) (a) | 1160000 | 1130591 |
|  Home Partners of America Trust <br>3.799%, 12/17/26 (144A) | 1376677 | 1125434 |
|  HPS Loan Management, Ltd. <br>5.532%, 3M LIBOR + 1.000%, 02/05/31 (144A) (a) | 1380565 | 1358839 |
|  ICG U.S. CLO, Ltd. <br>5.367%, 3M LIBOR + 1.140%, 10/19/28 (144A) (a) | 889222 | 877798 |
|  Invesco Euro CLO V DAC <br>5.178%, 3M EURIBOR + 3.800%, 01/15/34 (EUR) (a) | 100000 | 95723 |
|  Knollwood CDO, Ltd. <br>7.109%, 3M LIBOR + 3.200%, 01/10/39 (144A)† (a) | 1077056 | 108 |
|  LCM, Ltd. <br>5.149%, 3M LIBOR + 1.070%, 04/15/31 (144A) (a) | 250000 | 243771 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.283%, 3M LIBOR + 1.040%, 10/20/27 (144A) (a) | 286725 | 285007 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.313%, 3M LIBOR + 1.070%, 01/20/31 (144A) (a) | 2590000 | 2542694 |
|  Legacy Mortgage Asset Trust <br>3.375%, 02/25/59 (144A) (a) | 999749 | 931378 |
|  Lehman ABS Mortgage Loan Trust <br>4.479%, 1M LIBOR + 0.090%, 06/25/37 (144A) (a) | 132408 | 92776 |
|  Lendmark Funding Trust <br>3.090%, 04/20/32 (144A) | 170000 | 128878 |
|  Loanpal Solar Loan, Ltd. <br>2.290%, 01/20/48 (144A) | 887139 | 674684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 07/20/47 (144A) | 933403 | 773483 |
|  Logan CLO, Ltd. <br>5.403%, 3M LIBOR + 1.160%, 07/20/34 (144A) (a) | 730000 | 711922 |
|  Long Beach Mortgage Loan Trust <br>4.689%, 1M LIBOR + 0.300%, 06/25/36 (a) | 471918 | 230920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.709%, 1M LIBOR + 0.320%, 08/25/36 (a) | 531746 | 222991 |
|  Longfellow Place CLO, Ltd. <br>5.829%, 3M LIBOR + 1.750%, 04/15/29 (144A) (a) | 250000 | 244891 |
|  Madison Park Euro Funding DAC <br>4.578%, 3M EURIBOR + 3.200%, 05/25/34 (144A) (EUR) (a) | 250000 | 222622 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.978%, 3M EURIBOR + 3.600%, 07/15/32 (144A) (EUR) (a) | 250000 | 232622 |

---

*See accompanying notes to financial statements.* 

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Madison Park Funding, Ltd. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.149%, 3M LIBOR + 1.070%, 07/15/33 (144A) (a) | 350000 | $342670 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.177%, 3M LIBOR + 0.950%, 04/19/30 (144A) (a) | 1255178 | 1239913 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.199%, 3M LIBOR + 1.120%, 07/15/34 (144A) (a) | 790000 | 770161 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.199%, 3M LIBOR + 1.120%, 07/17/34 (144A) (a) | 860000 | 838356 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.218%, 3M LIBOR + 0.940%, 10/21/30 (144A) (a) | 5000000 | 4916440 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.233%, 3M LIBOR + 0.990%, 04/20/32 (144A) (a) | 550000 | 537979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.245%, 3M LIBOR + 0.920%, 01/22/28 (144A) (a) | 1004110 | 993526 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.615%, 3M LIBOR + 1.200%, 07/29/30 (144A) (a) | 2030000 | 2010691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.975%, 3M LIBOR + 1.650%, 04/22/27 (144A) (a) | 1119000 | 1081417 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.008%, 3M LIBOR + 1.650%, 04/25/29 (144A) (a) | 250000 | 243799 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.358%, 3M LIBOR + 2.000%, 07/27/31 (144A) (a) | 250000 | 239017 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.477%, 3M LIBOR + 6.250%, 10/19/34 (144A) (a) | 250000 | 216342 |
|  Marble Point CLO, Ltd. <br>5.374%, 3M LIBOR + 1.180%, 12/18/30 (144A) (a) | 580000 | 570702 |
|  Mariner CLO LLC <br>5.315%, 3M LIBOR + 0.990%, 07/23/29 (144A) (a) | 235903 | 233072 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.825%, 3M LIBOR + 1.500%, 07/23/29 (144A) (a) | 522000 | 506637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.375%, 3M LIBOR + 2.050%, 07/23/29 (144A) (a) | 1015000 | 978001 |
|  Mariner Finance Issuance Trust <br>3.420%, 11/20/36 (144A) | 100000 | 77633 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.510%, 07/20/32 (144A) | 560000 | 531447 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.010%, 07/20/32 (144A) | 490000 | 453682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.680%, 11/20/36 (144A) | 400000 | 300038 |
|  Merrill Lynch First Franklin Mortgage Loan Trust <br>4.869%, 1M LIBOR + 0.480%, 05/25/37 (a) | 7782311 | 5851434 |
|  Mill City Solar Loan, Ltd. <br>3.690%, 07/20/43 (144A) | 1077554 | 966696 |
|  Mosaic Solar Loan Trust <br>2.100%, 04/20/46 (144A) | 153700 | 133421 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.880%, 09/20/40 (144A) | 123296 | 105909 |
|  MP CLO, Ltd. <br>5.493%, 3M LIBOR + 1.250%, 10/20/30 (144A) (a) | 1010000 | 993012 |
|  Neuberger Berman Loan Advisers CLO, Ltd. <br>5.114%, 3M LIBOR + 0.920%, 10/18/30 (144A) (a) | 1770000 | 1744494 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.119%, 3M LIBOR + 1.040%, 04/15/34 (144A) (a) | 440000 | 425631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.179%, 3M LIBOR + 1.100%, 07/16/35 (144A) (a) | 680000 | 663486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.693%, 3M LIBOR + 1.450%, 07/20/31 (144A) (a) | 250000 | 242098 |
|  Nomura Asset Acceptance Corp. Alternative Loan Trust <br>4.789%, 1M LIBOR + 0.400%, 10/25/36 (144A) (a) | 76627 | 85847 |
|  OAK Hill European Credit Partners V DAC <br>3.362%, 3M EURIBOR + 1.900%, 01/21/35 (144A) (EUR) (a) | 250000 | 246542 |
|  OCP CLO, Ltd. <br>4.909%, 3M LIBOR + 1.000%, 04/10/33 (144A) (a) | 250000 | 243713 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.333%, 3M LIBOR + 1.090%, 07/20/32 (144A) (a) | 500000 | 487744 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.407%, 3M LIBOR + 1.080%, 04/26/31 (144A) (a) | 160000 | 157616 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.423%, 3M LIBOR + 1.180%, 12/02/34 (144A) (a) | 330000 | 318892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.727%, 3M LIBOR + 1.400%, 04/26/31 (144A) (a) | 180000 | 172614 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.225%, 3M LIBOR + 1.900%, 04/24/29 (144A) (a) | 911000 | 888251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 3M LIBOR + 1.950%, 11/20/30 (144A) (a) | 250000 | 235076 |
|  Octagon 54, Ltd. <br>7.129%, 3M LIBOR + 3.050%, 07/15/34 (144A) (a) | 250000 | 229562 |
| Octagon Investment Partners, Ltd. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.039%, 3M LIBOR + 0.960%, 04/16/31 (144A) (a) | 2210000 | 2175979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.099%, 3M LIBOR + 1.020%, 07/17/30 (144A) (a) | 3370000 | 3321014 |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
| Octagon Investment Partners, Ltd. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.358%, 3M LIBOR + 1.000%, 01/25/31 (144A) (a) | 3670000 | 3616337 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.393%, 3M LIBOR + 1.150%, 07/20/34 (144A) (a) | 1170000 | 1138823 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.433%, 3M LIBOR + 1.190%, 01/20/31 (144A) (a) | 250000 | 247637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.577%, 3M LIBOR + 1.350%, 07/19/30 (144A) (a) | 250000 | 241777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.938%, 3M LIBOR + 1.580%, 07/25/30 (144A) (a) | 250000 | 242658 |
|  OHA Credit Funding, Ltd. <br>5.383%, 3M LIBOR + 1.140%, 07/02/35 (144A) (a) | 550000 | 536544 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.428%, 3M LIBOR + 1.150%, 04/21/34 (144A) (a) | 2340000 | 2297236 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.475%, 3M LIBOR + 1.150%, 10/22/36 (144A) (a) | 250000 | 242366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.893%, 3M LIBOR + 1.650%, 07/02/35 (144A) (a) | 343000 | 331028 |
|  OHA Loan Funding, Ltd. <br>5.377%, 3M LIBOR + 1.150%, 01/19/37 (144A) (a) | 500000 | 486879 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.732%, 3M LIBOR + 1.040%, 05/23/31 (144A) (a) | 5670000 | 5598751 |
|  OneMain Financial Issuance Trust <br>3.140%, 10/14/36 (144A) | 3280000 | 2927016 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.840%, 05/14/32 (144A) | 1049609 | 1041954 |
|  Oportun Issuance Trust <br>1.960%, 05/08/31 (144A) | 170000 | 146841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.180%, 10/08/31 (144A) | 2500000 | 2187033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.670%, 10/08/31 (144A) | 1191000 | 1033792 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.610%, 10/08/31 (144A) | 383000 | 324528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 05/08/31 (144A) | 100000 | 83954 |
|  Owl Rock CLO VI, Ltd. <br>6.196%, 3M LIBOR + 1.450%, 06/21/32 (144A) (a) | 250000 | 241495 |
|  OZLM Funding, Ltd. <br>5.575%, 3M LIBOR + 1.250%, 10/22/30 (144A) (a) | 10503398 | 10385056 |
|  OZLM XXII, Ltd. <br>5.149%, 3M LIBOR + 1.070%, 01/17/31 (144A) (a) | 249683 | 246154 |
|  OZLM, Ltd. <br>5.099%, 3M LIBOR + 1.020%, 04/15/31 (144A) (a) | 520000 | 506704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.143%, 3M LIBOR + 1.900%, 01/20/31 (144A) (a) | 320000 | 293764 |
|  Palmer Square CLO, Ltd. <br>5.179%, 3M LIBOR + 1.100%, 07/16/31 (144A) (a) | 1240000 | 1222894 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.209%, 3M LIBOR + 1.130%, 01/17/31 (144A) (a) | 1312000 | 1298078 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.224%, 3M LIBOR + 1.030%, 04/18/31 (144A) (a) | 1040000 | 1024250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.227%, 3M LIBOR + 1.000%, 10/17/31 (144A) (a) | 560000 | 550036 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.229%, 3M LIBOR + 1.150%, 01/15/35 (144A) (a) | 250000 | 244684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.686%, 3M LIBOR + 1.080%, 11/15/31 (144A) (a) | 250000 | 245858 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.805%, 3M LIBOR + 1.130%, 05/21/34 (144A) (a) | 4195000 | 4103834 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.375%, 3M LIBOR + 1.700%, 05/21/34 (144A) (a) | 250000 | 239103 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.679%, 3M LIBOR + 5.600%, 07/16/31 (144A) (a) | 250000 | 222587 |
|  Palmer Square Loan Funding, Ltd. <br>6.025%, 3M LIBOR + 1.350%, 02/20/28 (144A) (a) | 980000 | 963224 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.079%, 3M LIBOR + 5.000%, 10/15/29 (144A) (a) | 270000 | 237873 |
|  Parallel, Ltd. <br>5.993%, 3M LIBOR + 1.750%, 07/20/27 (144A) (a) | 350000 | 341910 |
|  Park Avenue Institutional Advisers CLO, Ltd. <br>5.890%, 3M LIBOR + 1.240%, 02/14/34 (144A) (a) | 1050000 | 1020075 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.200%, 3M LIBOR + 1.550%, 02/14/34 (144A) (a) | 730000 | 692264 |
| &nbsp;&nbsp;&nbsp;&nbsp; 11.543%, 3M LIBOR + 7.300%, 01/20/34 (144A) (a) | 250000 | 213349 |
|  Pikes Peak CLO <br>5.413%, 3M LIBOR + 1.170%, 07/20/34 (144A) (a) | 1180000 | 1143202 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.505%, 3M LIBOR + 1.180%, 07/24/31 (144A) (a) | 250000 | 246581 |
|  Post CLO, Ltd. <br>7.029%, 3M LIBOR + 2.950%, 04/16/31 (144A) (a) | 250000 | 233815 |

---

*See accompanying notes to financial statements.* 

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Pretium Mortgage Credit Partners LLC <br>2.487%, 07/25/51 (144A) (l) | 1803375 | $1666071 |
|  Prima Capital CRE Securitization, Ltd. <br>4.000%, 08/24/40 (144A) | 1740000 | 1547693 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/24/49 (144A) | 241775 | 227383 |
|  Progress Residential Trust <br>2.757%, 04/17/38 (144A) | 500000 | 420406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.395%, 04/19/38 (144A) | 967000 | 816770 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.407%, 05/17/38 (144A) | 1340000 | 1138651 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.436%, 05/17/26 (144A) | 1070000 | 911106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.666%, 12/17/40 (144A) | 347919 | 275363 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.053%, 11/17/40 (144A) | 221000 | 175402 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.608%, 12/17/40 (144A) | 1405674 | 1148693 |
|  Race Point CLO, Ltd. <br>5.019%, 3M LIBOR + 0.940%, 10/15/30 (144A) (a) | 789000 | 777281 |
|  Rad CLO, Ltd. <br>5.159%, 3M LIBOR + 1.080%, 10/15/31 (144A) (a) | 540000 | 530892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.333%, 3M LIBOR + 1.090%, 01/20/34 (144A) (a) | 250000 | 244185 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.629%, 3M LIBOR + 1.550%, 04/15/32 (144A) (a) | 250000 | 241481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.829%, 3M LIBOR + 2.750%, 04/15/32 (144A) (a) | 250000 | 231982 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.158%, 3M LIBOR + 2.800%, 04/25/32 (144A) (a) | 250000 | 242474 |
|  Regatta VI Funding, Ltd. <br>5.403%, 3M LIBOR + 1.160%, 04/20/34 (144A) (a) | 760000 | 738677 |
|  Regatta VII Funding, Ltd. <br>5.896%, 3M LIBOR + 1.150%, 06/20/34 (144A) (a) | 280000 | 272215 |
|  Regatta XVI Funding, Ltd. <br>6.129%, 3M LIBOR + 2.050%, 01/15/33 (144A) (a) | 250000 | 244009 |
|  Regional Management Issuance Trust <br>1.900%, 08/15/33 (144A) | 173000 | 143780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 10/17/33 | 3710000 | 3166485 |
|  Republic Finance Issuance Trust <br>2.300%, 12/22/31 (144A) | 2250000 | 2015761 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.800%, 12/22/31 (144A) | 500000 | 436902 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.530%, 12/22/31 (144A) | 170000 | 147680 |
|  Riserva CLO, Ltd. <br>5.254%, 3M LIBOR + 1.060%, 01/18/34 (144A) (a) | 940000 | 909060 |
|  Rockford Tower CLO, Ltd. <br>5.343%, 3M LIBOR + 1.100%, 04/20/34 (144A) (a) | 1856000 | 1797298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.413%, 3M LIBOR + 1.170%, 07/20/34 (144A) (a) | 1260000 | 1227232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.433%, 3M LIBOR + 1.190%, 10/20/30 (144A) (a) | 3405000 | 3361515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.579%, 3M LIBOR + 1.500%, 10/15/29 (144A) (a) | 1781000 | 1716734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.893%, 3M LIBOR + 1.650%, 04/20/34 (144A) (a) | 1160000 | 1093174 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.325%, 3M LIBOR + 1.650%, 08/20/32 (144A) (a) | 250000 | 238504 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.929%, 3M LIBOR + 2.850%, 10/15/29 (144A) (a) | 939000 | 859885 |
|  Romark CLO, Ltd. <br>7.109%, 3M LIBOR + 3.200%, 07/10/34 (144A) (a) | 310000 | 286903 |
|  Romark WM-R, Ltd. <br>5.273%, 3M LIBOR + 1.030%, 04/20/31 (144A) (a) | 247404 | 243577 |
|  RR, Ltd. <br>5.169%, 3M LIBOR + 1.090%, 01/15/30 (144A) (a) | 860000 | 849990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.229%, 3M LIBOR + 1.150%, 07/15/35 (144A) (a) | 1620000 | 1583919 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.729%, 3M LIBOR + 1.650%, 10/15/31 (144A) (a) | 250000 | 242007 |
|  RRE 9 Loan Management DAC <br>3.078%, 3M EURIBOR + 1.700%, 10/15/36 (144A) (EUR) (a) | 560000 | 548333 |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Service Experts Issuer LLC <br>2.670%, 02/02/32 (144A) | 981607 | 891492 |
|  SG Mortgage Securities Trust <br>4.599%, 1M LIBOR + 0.210%, 10/25/36 (a) | 570000 | 385029 |
|  Signal Peak CLO, Ltd. <br>5.239%, 3M LIBOR + 1.160%, 04/17/34 (144A) (a) | 3750000 | 3640657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.743%, 3M LIBOR + 1.500%, 04/20/29 (144A) (a) | 1412000 | 1384261 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.879%, 3M LIBOR + 1.800%, 04/17/34 (144A) (a) | 490000 | 466758 |
|  Silver Creek CLO, Ltd. <br>5.483%, 3M LIBOR + 1.240%, 07/20/30 (144A) (a) | 1446115 | 1432640 |
|  Sixth Street CLO, Ltd <br>5.343%, 3M LIBOR + 1.100%, 07/20/34 (144A) (a) | 2890000 | 2823284 |
|  Sound Point CLO, Ltd. <br>5.225%, 3M LIBOR + 0.900%, 01/23/29 (144A) (a) | 186680 | 184290 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.249%, 3M LIBOR + 1.170%, 07/15/34 (144A) (a) | 4840000 | 4663480 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.397%, 3M LIBOR + 1.070%, 01/26/31 (144A) (a) | 500000 | 493059 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.638%, 3M LIBOR + 1.280%, 01/25/32 (144A) (a) | 350000 | 342915 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.293%, 3M LIBOR + 2.050%, 10/20/28 (144A) (a) | 780000 | 746805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.593%, 3M LIBOR + 3.350%, 07/20/34 (144A) (a) | 250000 | 221904 |
|  Soundview Home Loan Trust <br>5.184%, 1M LIBOR + 0.795%, 01/25/35 (a) | 14970 | 13437 |
|  Steele Creek CLO, Ltd. <br>5.329%, 3M LIBOR + 1.250%, 10/15/30 (144A) (a) | 670000 | 658618 |
|  Symphony CLO, Ltd. <br>5.323%, 3M LIBOR + 1.080%, 04/20/33 (144A) (a) | 398000 | 390700 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.679%, 3M LIBOR + 1.600%, 01/15/34 (144A) (a) | 250000 | 242090 |
|  TCI-Flatiron CLO, Ltd. <br>5.610%, 3M LIBOR + 0.960%, 11/18/30 (144A) (a) | 680000 | 665899 |
|  TCW CLO AMR, Ltd. <br>5.864%, 3M LIBOR + 1.220%, 08/16/34 (144A) (a) | 250000 | 239723 |
|  TIAA CLO, Ltd. <br>5.229%, 3M LIBOR + 1.150%, 01/16/31 (144A) (a) | 571000 | 563705 |
|  TICP CLO, Ltd. <br>5.199%, 3M LIBOR + 1.120%, 01/15/34 (144A) (a) | 820000 | 798251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.249%, 3M LIBOR + 1.170%, 07/15/34 (144A) (a) | 250000 | 244106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.579%, 3M LIBOR + 1.500%, 01/15/34 (144A) (a) | 1050000 | 1002082 |
|  Trestles CLO, Ltd. <br>5.413%, 3M LIBOR + 1.170%, 10/20/34 (144A) (a) | 1190000 | 1161707 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.448%, 3M LIBOR + 1.170%, 07/21/34 (144A) (a) | 1170000 | 1144419 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.573%, 3M LIBOR + 1.330%, 01/20/33 (144A) (a) | 1170000 | 1144316 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.093%, 3M LIBOR + 1.850%, 01/20/33 (144A) (a) | 520000 | 507066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.258%, 3M LIBOR + 2.900%, 04/25/32 (144A) (a) | 250000 | 232140 |
|  Tricon American Homes Trust <br>4.564%, 05/17/37 (144A) | 260000 | 243198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.960%, 05/17/37 (144A) | 180000 | 168059 |
|  Tricon Residential Trust <br>3.692%, 07/17/38 (144A) | 795000 | 672321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.133%, 07/17/38 (144A) | 639000 | 530057 |
|  Trinitas CLO, Ltd. <br>5.594%, 3M LIBOR + 1.400%, 10/18/31 (144A) (a) | 160000 | 153030 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.358%, 3M LIBOR + 2.000%, 01/25/34 (144A) (a) | 560000 | 532136 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.358%, 3M LIBOR + 3.000%, 01/25/34 (144A) (a) | 400000 | 386822 |
|  Venture CLO, Ltd. <br>5.264%, 3M LIBOR + 1.070%, 07/18/31 (144A) (a) | 420000 | 413242 |
|  VOLT CVI LLC <br>2.734%, 12/26/51 (144A) (l) | 1979457 | 1828761 |

---

*See accompanying notes to financial statements.* 

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Voya CLO, Ltd. <br>5.139%, 3M LIBOR + 1.060%, 04/15/31 (144A) (a) | 1989000 | $| 1961840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.209%, 3M LIBOR + 1.130%, 10/15/30 (144A) (a) | 1020000 |  | 1008880 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.283%, 3M LIBOR + 1.040%, 04/20/34 (144A) (a) | 357000 |  | 346883 |
|  Voya Euro CLO DAC <br>3.128%, 3M EURIBOR + 1.750%, 04/15/35 (144A) (EUR) (a) | 340000 |  | 333883 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.478%, 3M EURIBOR + 3.100%, 04/15/35 (144A) (EUR) (a) | 250000 |  | 223871 |
|  Washington Mutual Asset-Backed Certificates Trust <br>3.939%, 1M LIBOR + 0.155%, 10/25/36 (a) | 544652 |  | 405703 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.749%, 1M LIBOR + 0.360%, 09/25/36 (a) | 1717156 |  | 525535 |
|  Whitebox CLO, Ltd. <br>7.375%, 3M LIBOR + 3.050%, 07/24/32 (144A) (a) | 500000 |  | 468523 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.429%, 3M LIBOR + 3.350%, 10/15/34 (144A) (a) | 250000 |  | 235743 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.725%, 3M LIBOR + 6.400%, 07/24/32 (144A) (a) | 250000 |  | 218044 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.929%, 3M LIBOR + 6.850%, 10/15/34 (144A) (a) | 250000 |  | 228871 |
|  Woodmont Trust <br>5.913%, 3M LIBOR + 1.670%, 04/20/33 (144A) (a) | 1570000 |  | 1510373 |
|  |  |  | 280099876 |
| **Asset-Backed - Student Loan—0.8%** | **Asset-Backed - Student Loan—0.8%** | **Asset-Backed - Student Loan—0.8%** | **Asset-Backed - Student Loan—0.8%** |
|  College Avenue Student Loans LLC <br>2.420%, 06/25/52 (144A) | 190000 |  | 154677 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.720%, 06/25/52 (144A) | 100000 |  | 80113 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.110%, 07/26/55 (144A) | 100000 |  | 77875 |
|  Navient Private Education Loan Trust <br>5.218%, 1M LIBOR + 0.900%, 11/15/68 (144A) (a) | 366624 |  | 359826 |
|  Navient Private Education Refi Loan Trust <br>2.610%, 04/15/60 (144A) | 280000 |  | 250672 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.690%, 07/15/69 (144A) | 450000 |  | 360210 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.480%, 04/15/60 (144A) | 710000 |  | 594984 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/15/60 (144A) | 230000 |  | 194753 |
|  Nelnet Student Loan Trust <br>2.530%, 04/20/62 (144A) | 2102119 |  | 1636589 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.680%, 04/20/62 (144A) | 3120000 |  | 2478591 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.850%, 04/20/62 (144A) | 3661000 |  | 2909451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.900%, 04/20/62 (144A) | 1640000 |  | 1306715 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.360%, 04/20/62 (144A) | 110000 |  | 84984 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/20/62 (144A) | 170000 |  | 132549 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.570%, 04/20/62 (144A) | 142000 |  | 113321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 04/20/62 (144A) | 277000 |  | 221621 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.380%, 04/20/62 (144A) | 100000 |  | 74958 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.440%, 04/20/62 (144A) | 160000 |  | 125893 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 04/20/62 (144A) | 260000 |  | 203086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.930%, 04/20/62 (144A) | 374000 |  | 298547 |
|  Prodigy Finance DAC <br>5.639%, 1M LIBOR + 1.250%, 07/25/51 (144A) (a) | 665320 |  | 642867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.889%, 1M LIBOR + 2.500%, 07/25/51 (144A) (a) | 250000 |  | 244901 |
|  Scholar Funding Trust <br>5.039%, 1M LIBOR + 0.650%, 01/30/45 (144A) (a) | 2872764 |  | 2756545 |
|  SLM Private Credit Student Loan Trust <br>5.099%, 3M LIBOR + 0.330%, 03/15/24 (a) | 240600 |  | 239881 |
|  SLM Private Education Loan Trust <br>9.068%, 1M LIBOR + 4.750%, 10/15/41 (144A) (a) | 2879084 |  | 3087818 |
| **Asset-Backed - Student Loan—(Continued)** | **Asset-Backed - Student Loan—(Continued)** | **Asset-Backed - Student Loan—(Continued)** | **Asset-Backed - Student Loan—(Continued)** |
|  SMB Private Education Loan Trust <br>2.300%, 01/15/53 (144A) | 150000 |  | 128350 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.990%, 01/15/53 (144A) | 2040000 |  | 1703678 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/15/53 (144A) | 120000 |  | 109258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/17/40 (144A) | 1340000 |  | 1268240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.860%, 01/15/53 (144A) | 1352000 |  | 1208687 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.930%, 01/15/53 (144A) | 100000 |  | 88456 |
|  |  |  | 23138096 |
|  Total Asset-Backed Securities<br>(Cost $350,906,996) |  |  | 329720802 |
| **Mortgage-Backed Securities—6.2%** | **Mortgage-Backed Securities—6.2%** | **Mortgage-Backed Securities—6.2%** | **Mortgage-Backed Securities—6.2%** |
| **Collateralized Mortgage Obligations—3.0%** | **Collateralized Mortgage Obligations—3.0%** | **Collateralized Mortgage Obligations—3.0%** | **Collateralized Mortgage Obligations—3.0%** |
|  Agate Bay Mortgage Trust <br>3.523%, 06/25/45 (144A) (a) | 104000 |  | 62579 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.543%, 04/25/45 (144A) (a) | 150000 |  | 96512 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.666%, 01/25/45 (144A) (a) | 130000 |  | 83163 |
|  Ajax Mortgage Loan Trust |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 02/26/57 (144A) | 49861 |  | 38647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 12/25/57 (144A) (a) | 35904 |  | 22120 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 04/25/58 (144A) | 22230 |  | 21928 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 06/25/58 (144A) (a) | 1890 |  | 1833 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 08/25/58 (144A) (a) | 6454 |  | 4457 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 11/25/58 (144A) | 71230 |  | 46466 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 09/25/59 (144A) | 2275035 |  | 1705762 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 11/25/59 (144A) | 967110 |  | 907001 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 12/25/59 (144A) | 1719772 |  | 1070692 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.740%, 12/25/60 (144A) (a) | 4172776 |  | 3530417 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 06/25/61 (144A) (a) | 7388034 |  | 6501546 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 06/25/61 (144A) (l) | 7325110 |  | 6783704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/25/60 (144A) (l) | 5028995 |  | 4515338 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.115%, 01/25/61 (144A) (l) | 2071803 |  | 1919034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 06/25/60 (144A) (l) | 748567 |  | 697281 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 09/27/60 (144A) (l) | 182236 |  | 174336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 12/25/59 (144A) (l) | 3438384 |  | 3357279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.693%, 12/25/60 (144A) (a) | 744000 |  | 595416 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.940%, 12/25/60 (144A) (a) | 293000 |  | 226202 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/25/59 (144A) (l) | 3996196 |  | 3892106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/25/59 (144A) (l) | 971937 |  | 959138 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/25/59 (144A) (l) | 732499 |  | 713012 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.729%, 12/25/60 (144A) (a) | 449000 |  | 353959 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 09/25/59 (144A) (l) | 432000 |  | 404741 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 11/25/59 (144A) (l) | 400000 |  | 391843 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 09/25/59 (144A) (l) | 570000 |  | 562725 |
| Alternative Loan Trust |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.778%, 12M MTA + 1.730%, 11/25/46 (a) | 1696987 |  | 1291619 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.543%, 1M LIBOR + 0.190%, 03/20/47 (a) | 901316 |  | 711033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.553%, 1M LIBOR + 0.200%, 07/20/46 (a) | 1575175 |  | 1161766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.669%, 1M LIBOR + 0.280%, 04/25/47 (a) | 423656 |  | 366635 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.739%, 1M LIBOR + 0.350%, 06/25/35 (a) | 970915 |  | 824374 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.769%, 1M LIBOR + 0.380%, 10/25/46 (a) | 584526 |  | 509987 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.849%, 1M LIBOR + 0.460%, 11/25/36 (a) | 530611 |  | 446774 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/25/37 | 547575 |  | 299366 |

---

*See accompanying notes to financial statements.* 

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** |
| Alternative Loan Trust |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/25/37 | 91335 | $| 45568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/25/37 | 2052577 |  | 1054344 |
|  American Home Mortgage Assets Trust <br>2.988%, 12M MTA + 0.940%, 10/25/46 (a) | 332305 |  | 229831 |
|  APS Resecuritization Trust <br>7.239%, 1M LIBOR + 2.850%, 09/27/46 (144A) (a) | 518620 |  | 517514 |
|  Barclays Mortgage Trust <br>2.000%, 11/25/51 (144A) (l) | 3896796 |  | 3645250 |
|  Bear Stearns Asset-Backed Securities Trust <br>6.250%, 12/25/35 (l) | 1271413 |  | 826355 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 02/25/36 (l) | 1872985 |  | 1208427 |
|  Chase Mortgage Finance Trust <br>6.000%, 12/25/37 | 6312074 |  | 2825796 |
|  CHL Mortgage Pass-Through Trust <br>3.008%, 12M MTA + 0.960%, 04/25/46 (a) | 3102478 |  | 977021 |
|  Credit Suisse Mortgage Capital Certificates <br>2.436%, 02/25/61 (144A) (a) | 1862047 |  | 1707203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 10/27/37 (144A) | 2614685 |  | 1032825 |
|  CSFB Mortgage-Backed Pass-Through Certificates <br>5.739%, 1M LIBOR + 1.350%, 11/25/35 (a) | 409502 |  | 100693 |
|  Deutsche ALT-A Securities Mortgage Loan Trust <br>4.729%, 1M LIBOR + 0.340%, 08/25/47 (a) | 284854 |  | 241513 |
|  GreenPoint Mortgage Funding Trust <br>4.048%, 12M MTA + 2.000%, 03/25/36 (a) | 95475 |  | 90306 |
|  GS Mortgage-Backed Securities Corp. <br>4.336%, 11/25/49 (144A) (a) | 253882 |  | 199241 |
|  GSR Mortgage Loan Trust <br>6.000%, 07/25/37 | 377263 |  | 262570 |
|  HarborView Mortgage Loan Trust <br>4.749%, 1M LIBOR + 0.205%, 12/19/36 (a) | 1141928 |  | 935947 |
|  Impac Secured Assets Trust <br>4.729%, 1M LIBOR + 0.340%, 11/25/36 (a) | 168991 |  | 143632 |
|  IndyMac INDX Mortgage Loan Trust <br>3.371%, 09/25/37 (a) | 653095 |  | 422400 |
|  JPMorgan Alternative Loan Trust <br>3.854%, 05/25/37 (a) | 143684 |  | 119047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.809%, 1M LIBOR + 0.420%, 03/25/37 (a) | 724731 |  | 636765 |
|  JPMorgan Mortgage Trust <br>0.270%, 02/25/52 (144A) (a) (b) | 9384755 |  | 130595 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 02/25/52 (144A) (a) (b) | 9385567 |  | 265744 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/25/52 (144A) (a) | 7323989 |  | 5851102 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.206%, 02/25/52 (144A) (a) | 128435 |  | 43833 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.270%, 02/25/52 (144A) (a) | 983772 |  | 754770 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/25/36 | 185342 |  | 76411 |
|  Legacy Mortgage Asset Trust <br>1.750%, 04/25/61 (144A) (l) | 3153088 |  | 2850048 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.734%, 01/25/60 (144A) (l) | 185951 |  | 181541 |
|  MASTR Resecuritization Trust <br>3.780%, 08/25/37 (144A) (a) | 228107 |  | 109753 |
|  Merrill Lynch Mortgage Investors Trust <br>3.009%, 05/25/36 (a) | 487419 |  | 357468 |
|  MFA Trust <br>3.514%, 04/25/65 (144A) (a) | 540000 |  | 389054 |
|  Mortgage Loan Resecuritization Trust <br>4.460%, 1M LIBOR + 0.340%, 04/16/36 (144A) (a) | 904864 |  | 843486 |
| **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** |
|  New Residential Mortgage Loan Trust <br>4.250%, 12/25/57 (144A) (a) | 235053 |  | 222141 |
|  New York Mortgage Trust, Inc. <br>2.944%, 10/25/60 (144A) (a) | 2067566 |  | 1995301 |
|  Nomura Asset Acceptance Corp. Alternative Loan Trust <br>7.134%, 05/25/36 (l) | 221731 |  | 48827 |
|  Preston Ridge Partners Mortgage LLC <br>2.951%, 10/25/25 (144A) (l) | 1078616 |  | 1040617 |
|  RFMSI Trust <br>4.850%, 08/25/36 (a) | 838261 |  | 584662 |
|  RMF Buyout Issuance Trust <br>3.690%, 11/25/31 (144A) (a) | 509000 |  | 373629 |
|  Seasoned Credit Risk Transfer Trust |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 07/25/56 (144A) (m) | 788947 |  | 116832 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.697%, 07/25/56 (144A) (a) (b) | 997061 |  | 97517 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.729%, 05/25/57 (a) | 159762 |  | 74267 |
|  Seasoned Loans Structured Transaction Trust <br>4.750%, 09/25/60 (144A) (a) | 2550000 |  | 2411062 |
|  Sequoia Mortgage Trust <br>3.194%, 07/20/37 (a) | 166127 |  | 132692 |
|  Structured Adjustable Rate Mortgage Loan Trust <br>3.330%, 04/25/36 (a) | 183218 |  | 112066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.490%, 04/25/47 (a) | 560216 |  | 285556 |
|  Structured Asset Mortgage Investments Trust <br>4.769%, 1M LIBOR + 0.380%, 06/25/36 (a) | 801909 |  | 657030 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.809%, 1M LIBOR + 0.420%, 05/25/46 (a) | 138682 |  | 87907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.849%, 1M LIBOR + 0.460%, 02/25/36 (a) | 623870 |  | 538176 |
|  TVC Mortgage Trust <br>3.474%, 09/25/24 (144A) | 114185 |  | 113799 |
|  Verus Securitization Trust <br>2.601%, 05/25/65 (144A) (a) | 391000 |  | 310684 |
|  VISIO Trust <br>3.910%, 11/25/54 (144A) (a) | 169000 |  | 118161 |
|  Vista Point Securitization Trust <br>4.900%, 04/25/65 (144A) (a) | 100000 |  | 82452 |
|  Voyager OPTONE Delaware Trust <br>4.294%, 02/25/38 (144A) (a) (b) | 3016967 |  | 835952 |
|  WaMu Mortgage Pass-Through Certificates Trust <br>2.798%, 12M MTA + 0.750%, 06/25/47 (a) | 428453 |  | 329637 |
|  |  |  | 84895811 |
| **Commercial Mortgage-Backed Securities—3.2%** | **Commercial Mortgage-Backed Securities—3.2%** | **Commercial Mortgage-Backed Securities—3.2%** | **Commercial Mortgage-Backed Securities—3.2%** |
|  1211 Avenue of the Americas Trust <br>4.142%, 08/10/35 (144A) (a) | 230000 |  | 189046 |
|  ACEN Mortgage Trust <br>7.418%, 1M LIBOR + 3.100%, 04/15/34 (144A) (a) | 453000 |  | 361848 |
|  Arbor Multifamily Mortgage Securities Trust <br>1.750%, 05/15/53 (144A) | 126000 |  | 72534 |
|  Ashford Hospitality Trust, Inc. <br>6.418%, 1M LIBOR + 2.100%, 04/15/35 (144A) (a) | 138000 |  | 126898 |
|  Atrium Hotel Portfolio Trust <br>6.518%, 1M LIBOR + 1.950%, 12/15/36 (144A) (a) | 1540000 |  | 1404402 |
|  BAMLL Commercial Mortgage Securities Trust <br>3.596%, 04/14/33 (144A) (a) | 250000 |  | 203163 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.718%, 1M LIBOR + 1.400%, 11/15/33 (144A) (a) | 510000 |  | 456957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.818%, 1M LIBOR + 1.500%, 11/15/32 (144A) (a) | 300000 |  | 267321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.318%, 1M LIBOR + 2.000%, 11/15/32 (144A) (a) | 630000 |  | 534591 |

---

*See accompanying notes to financial statements.* 

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** |
|  Banc of America Commercial Mortgage Trust <br>0.586%, 02/15/50 (a) (b) | 4070000 | $88007 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.243%, 02/15/50 (144A) (a) (b) | 2000000 | 87429 |
|  BANK <br>0.368%, 09/15/62 (a) (b) | 8619000 | 178290 |
|  Barclays Commercial Mortgage Trust <br>5.040%, 1M LIBOR + 0.722%, 03/15/37 (144A) (a) | 280000 | 258641 |
|  Bayview Commercial Asset Trust <br>4.764%, 1M LIBOR + 0.375%, 10/25/36 (144A) (a) | 97437 | 90831 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.794%, 1M LIBOR + 0.405%, 03/25/37 (144A) (a) | 147082 | 133241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.839%, 1M LIBOR + 0.450%, 01/25/36 (144A) (a) | 68458 | 62310 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.839%, 1M LIBOR + 0.450%, 10/25/36 (144A) (a) | 99147 | 92614 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.929%, 1M LIBOR + 0.540%, 04/25/36 (144A) (a) | 73136 | 65748 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.064%, 1M LIBOR + 0.675%, 01/25/36 (144A) (a) | 50963 | 46146 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.889%, 1M LIBOR + 1.500%, 12/25/37 (144A) (a) | 1113767 | 974317 |
|  BB-UBS Trust <br>0.596%, 11/05/36 (144A) (a) (b) | 85480000 | 857048 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.026%, 11/05/36 (144A) (a) | 330000 | 289095 |
|  BBCMS Mortgage Trust <br>7.943%, 1M LIBOR + 3.625%, 08/15/36 (144A) (a) | 297000 | 285259 |
|  Beast Mortgage Trust <br>5.418%, 1M LIBOR + 1.100%, 04/15/36 (144A) (a) | 604000 | 564810 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.668%, 1M LIBOR + 1.350%, 04/15/36 (144A) (a) | 751000 | 693836 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.918%, 1M LIBOR + 1.600%, 04/15/36 (144A) (a) | 697000 | 636241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.418%, 1M LIBOR + 2.100%, 04/15/36 (144A) (a) | 589000 | 534124 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.218%, 1M LIBOR + 2.900%, 04/15/36 (144A) (a) | 576000 | 528355 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.118%, 1M LIBOR + 3.800%, 04/15/36 (144A) (a) | 641000 | 587891 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.220%, 1M LIBOR + 4.902%, 04/15/36 (144A) (a) | 454000 | 417133 |
|  Benchmark Mortgage Trust <br>1.031%, 03/15/52 (a) (b) | 3556161 | 168111 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.272%, 02/15/54 (a) (b) | 5105295 | 344261 |
|  BFLD Trust <br>8.018%, 1M LIBOR + 3.700%, 10/15/35 (144A) (a) | 663000 | 539726 |
|  BHMS Mortgage Trust <br>5.568%, 1M LIBOR + 1.250%, 07/15/35 (144A) (a) | 260000 | 249618 |
|  BPR Trust <br>7.918%, 1M LIBOR + 3.600%, 09/15/38 (144A) (a) | 492000 | 444653 |
|  BWAY Mortgage Trust <br>3.446%, 03/10/33 (144A) | 1495000 | 1333650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.454%, 03/10/33 (144A) | 1847304 | 1725048 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.633%, 03/10/33 (144A) | 600000 | 525155 |
|  BX Commercial Mortgage Trust <br>2.843%, 03/09/44 (144A) (a) | 1167000 | 938338 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.228%, 1M LIBOR + 0.910%, 02/15/33 (144A) (a) | 2391915 | 2305546 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.468%, 1M LIBOR + 2.150%, 02/15/33 (144A) (a) | 1466417 | 1414475 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.489%, 1M LIBOR + 2.171%, 10/15/36 (144A) (a) | 399326 | 366030 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.568%, 1M LIBOR + 2.250%, 01/15/34 (144A) (a) | 280000 | 260323 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.750%, 1M TSFR + 2.414%, 10/15/36 (144A) (a) | 3944000 | 3775190 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.100%, 1M TSFR + 2.764%, 10/15/36 (144A) (a) | 3680342 | 3506167 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.118%, 1M LIBOR + 2.800%, 06/15/38 (144A) (a) | 1885074 | 1740161 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.138%, 1M LIBOR + 2.820%, 12/15/38 (144A) (a) | 1223000 | 1124875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.318%, 1M LIBOR + 3.000%, 01/15/34 (144A) (a) | 430000 | 395522 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.568%, 1M LIBOR + 4.250%, 02/15/33 (144A) (a) | 979005 | 944907 |
| BX Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.202%, 12/09/41 (144A) | 168000 | 140545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.944%, 12/09/41 (144A) (a) | 3534000 | 2774599 |
| **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** |
| BX Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.213%, 1M LIBOR + 1.895%, 10/15/36 (144A) (a) | 344000 | 318120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.718%, 1M LIBOR + 2.400%, 02/15/36 (144A) (a) | 1920000 | 1706476 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.318%, 1M LIBOR + 3.000%, 02/15/36 (144A) (a) | 1845000 | 1612654 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.460%, 1M LIBOR + 3.142%, 10/15/36 (144A) (a) | 1087000 | 971167 |
|  BXP Trust <br>2.776%, 01/15/44 (144A) (a) | 327000 | 203630 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.552%, 08/13/37 (144A) (a) | 760000 | 580536 |
|  Cassia SRL <br>4.321%, 3M EURIBOR + 2.500%, 05/22/34 (144A) (EUR) (a) | 1267640 | 1292940 |
|  CD Commercial Mortgage Trust <br>3.631%, 02/10/50 | 350000 | 325470 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.956%, 08/15/50 (a) | 363000 | 316213 |
|  CFCRE Commercial Mortgage Trust <br>0.692%, 05/10/58 (a) (b) | 2370000 | 48558 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.690%, 02/15/33 (144A) | 220000 | 216588 |
|  CFK Trust <br>4.637%, 01/15/39 (144A) (a) | 728000 | 614089 |
|  CHC Commercial Mortgage Trust <br>5.818%, 1M LIBOR + 1.500%, 06/15/34 (144A) (a) | 1380928 | 1313830 |
|  Citigroup Commercial Mortgage Trust <br>0.801%, 11/10/42 (144A) (a) (b) | 7730000 | 386122 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.731%, 05/10/36 (144A) (a) | 1107000 | 1099443 |
|  Cold Storage Trust <br>7.084%, 1M LIBOR + 2.766%, 11/15/37 (144A) (a) | 1582615 | 1517055 |
|  Commercial Mortgage Pass-Through Certificates Mortgage Trust <br>0.060%, 02/10/35 (144A) (a) (b) | 60958000 | 110920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.960%, 03/10/46 (a) (b) | 11223124 | 312 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.179%, 10/10/36 (144A) (a) | 270000 | 204871 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.550%, 07/15/47 | 456647 | 442154 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.673%, 02/10/47 (a) | 143000 | 137165 |
|  Credit Suisse Mortgage Capital Certificates Trust <br>3.778%, 11/10/32 (144A) (a) | 301000 | 257213 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.268%, 1M LIBOR + 0.950%, 12/15/30 (144A) (a) | 280000 | 268613 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.180%, 1M LIBOR + 4.862%, 10/15/37 (144A) (a) | 750000 | 661086 |
|  Credit Suisse Mortgage Trust <br>7.818%, 1M LIBOR + 3.500%, 11/15/38 (144A) (a) | 191000 | 179130 |
|  CSAIL Commercial Mortgage Trust <br>0.174%, 11/15/50 (a) (b) | 3940000 | 42232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.556%, 09/15/52 (a) (b) | 4150000 | 127222 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.353%, 09/15/52 (a) (b) | 3100443 | 187783 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.551%, 06/15/52 (a) (b) | 7078972 | 507122 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.504%, 06/15/57 | 320000 | 303651 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.237%, 06/15/52 (a) | 130000 | 102435 |
|  DBJPM Mortgage Trust <br>1.000%, 06/10/50 (a) (b) | 2060000 | 73408 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.276%, 05/10/49 | 240000 | 223990 |
|  DBUBS Mortgage Trust <br>3.452%, 10/10/34 (144A) | 418000 | 392931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.530%, 10/10/34 (144A) (a) | 1257563 | 1104663 |
|  ELP Commercial Mortgage Trust <br>7.434%, 1M LIBOR + 3.116%, 11/15/38 (144A) (a) | 994000 | 905806 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.933%, 1M LIBOR + 3.615%, 11/15/38 (144A) (a) | 192000 | 174934 |
| Extended Stay America Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.568%, 1M LIBOR + 2.250%, 07/15/38 (144A) (a) | 732144 | 700922 |

---

*See accompanying notes to financial statements.* 

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** |
| Extended Stay America Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.168%, 1M LIBOR + 2.850%, 07/15/38 (144A) (a) | 1317860 | $1255051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.018%, 1M LIBOR + 3.700%, 07/15/38 (144A) (a) | 1067954 | 1001329 |
|  GCT Commercial Mortgage Trust <br>6.668%, 1M LIBOR + 2.350%, 02/15/38 (144A) (a) | 100000 | 75917 |
|  GS Mortgage Securities Corp. II <br>5.366%, 05/03/32 (144A) | 840000 | 808592 |
|  GS Mortgage Securities Corp. Trust <br>1.726%, 12/12/53 (144A) (a) (b) | 3116686 | 288394 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.856%, 05/10/34 (144A) | 710000 | 660300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.753%, 1M LIBOR + 3.435%, 11/15/36 (144A) (a) | 121000 | 110844 |
|  GS Mortgage Securities Trust <br>3.805%, 10/10/35 (144A) (a) | 200000 | 161231 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.808%, 11/10/52 (a) | 110000 | 84763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.411%, 07/10/48 (a) | 110000 | 98303 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.529%, 04/10/47 (a) | 50000 | 47204 |
|  HMH Trust <br>3.062%, 07/05/31 (144A) | 1210000 | 1137400 |
|  HONO Mortgage Trust <br>7.668%, 1M LIBOR + 3.350%, 10/15/36 (144A) (a) | 387000 | 350216 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.718%, 1M LIBOR + 4.400%, 10/15/36 (144A) (a) | 263000 | 237064 |
|  Hudson Yards Mortgage Trust <br>2.943%, 12/10/41 (144A) (a) | 662050 | 445011 |
|  IMT Trust <br>3.478%, 06/15/34 (144A) | 540000 | 514792 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.497%, 06/15/34 (144A) (a) | 570000 | 530983 |
|  JPMBB Commercial Mortgage Securities Trust <br>0.574%, 05/15/48 (a) (b) | 578986 | 6224 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.799%, 09/15/47 (a) (b) | 1215252 | 11401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.120%, 12/15/48 (144A) (a) | 300000 | 254185 |
|  JPMCC Commercial Mortgage Securities Trust <br>3.490%, 07/15/50 | 320000 | 295999 |
|  JPMDB Commercial Mortgage Securities Trust <br>0.750%, 12/15/49 (144A) (a) (b) | 2067000 | 47481 |
|  JPMorgan Chase Commercial Mortgage Securities Corp. <br>6.768%, 1M LIBOR + 2.450%, 04/15/38 (144A) (a) | 1030000 | 975708 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.268%, 1M LIBOR + 2.950%, 04/15/38 (144A) (a) | 450000 | 422894 |
|  JPMorgan Chase Commercial Mortgage Securities Trust <br>0.576%, 04/15/46 (a) (b) | 4900000 | 7754 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.750%, 08/15/49 (144A) (a) (b) | 5300000 | 117863 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 09/15/50 | 110000 | 94548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.528%, 1M LIBOR + 1.210%, 06/15/35 (144A) (a) | 310107 | 282834 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.018%, 1M LIBOR + 1.700%, 04/15/38 (144A) (a) | 787000 | 747489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.478%, 1M LIBOR + 2.160%, 07/15/36 (144A) (a) | 570000 | 529447 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.088%, 1M LIBOR + 2.770%, 10/15/33 (144A) (a) | 180000 | 153206 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.875%, 1M TSFR + 3.540%, 04/15/37 (144A) (a) | 916733 | 738941 |
|  KKR Industrial Portfolio Trust <br>6.368%, 1M LIBOR + 2.050%, 12/15/37 (144A) (a) | 420000 | 387242 |
|  KNDL Mortgage Trust <br>6.118%, 1M LIBOR + 1.800%, 05/15/36 (144A) (a) | 2038000 | 1982677 |
|  LB-UBS Commercial Mortgage Trust <br>1.021%, 12/15/52 (a) (b) | 7176753 | 329549 |
|  Lehman Brothers Small Balance Commercial Mortgage Trust <br>4.639%, 1M LIBOR + 0.250%, 03/25/37 (144A) (a) | 64489 | 64298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.839%, 1M LIBOR + 0.450%, 09/25/36 (144A) (a) | 238095 | 225032 |
| **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** |
|  Life Mortgage Trust <br>6.668%, 1M LIBOR + 2.350%, 03/15/38 (144A) (a) | 673335 | 635318 |
|  LSTAR Commercial Mortgage Trust <br>0.792%, 03/10/50 (144A) (a) (b) | 645896 | 13235 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.142%, 04/20/48 (144A) (a) | 56756 | 54223 |
|  LUXE Trust <br>7.068%, 1M LIBOR + 2.750%, 10/15/38 (144A) (a) | 100000 | 91526 |
|  Med Trust <br>9.568%, 1M LIBOR + 5.250%, 11/15/38 (144A) (a) | 4971839 | 4487352 |
|  MF1 <br>8.556%, 1M TSFR + 4.220%, 12/15/34 (144A) (a) | 163000 | 145980 |
|  MFT Trust <br>3.477%, 02/10/42 (144A) (a) | 350781 | 251650 |
|  MHC Commercial Mortgage Trust <br>6.419%, 1M LIBOR + 2.101%, 04/15/38 (144A) (a) | 2191000 | 2073592 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.919%, 1M LIBOR + 2.601%, 04/15/38 (144A) (a) | 193000 | 180904 |
|  Morgan Stanley Bank of America Merrill Lynch Trust <br>1.179%, 12/15/47 (144A) (a) (b) | 1810000 | 39324 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.526%, 10/15/48 (a) | 170000 | 154217 |
|  Morgan Stanley Capital Trust <br>1.003%, 03/15/52 (a) (b) | 2337566 | 111365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.152%, 06/15/50 (144A) (a) (b) | 1190000 | 90091 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.071%, 03/15/52 | 403000 | 371918 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.177%, 07/15/51 | 38000 | 35800 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.868%, 1M LIBOR + 2.550%, 07/15/35 (144A) (a) | 10000 | 9548 |
|  MSCG Trust <br>6.468%, 1M LIBOR + 2.150%, 10/15/37 (144A) (a) | 111492 | 103871 |
|  Natixis Commercial Mortgage Securities Trust <br>4.404%, 06/17/38 (144A) | 265000 | 240175 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.268%, 1M LIBOR + 0.950%, 06/15/35 (144A) (a) | 118660 | 114532 |
|  Olympic Tower Mortgage Trust <br>0.379%, 05/10/39 (144A) (a) (b) | 13300000 | 199846 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.945%, 05/10/39 (144A) (a) | 1049000 | 754490 |
|  One Market Plaza Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 02/10/32 (144A) (a) (b) | 21110000 | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.090%, 02/10/32 (144A) (a) (b) | 4222000 | 2711 |
|  One New York Plaza Trust <br>7.068%, 1M LIBOR + 2.750%, 01/15/36 (144A) (a) | 160000 | 140036 |
|  Park Avenue Mortgage Trust <br>5.774%, 1M LIBOR + 1.536%, 09/15/34 (144A) (a) | 500000 | 458584 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.356%, 1M LIBOR + 2.119%, 09/15/34 (144A) (a) | 1610000 | 1453839 |
|  Park Avenue Trust <br>0.149%, 06/05/37 (144A) (a) (b) | 5000000 | 35952 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.657%, 06/05/37 (144A) (a) | 207000 | 148815 |
|  SREIT Trust <br>6.936%, 1M LIBOR + 2.618%, 11/15/36 (144A) (a) | 672700 | 628842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.943%, 1M LIBOR + 2.625%, 11/15/38 (144A) (a) | 890000 | 829744 |
|  UBS Commercial Mortgage Trust <br>1.469%, 10/15/52 (a) (b) | 6848774 | 480976 |
|  Velocity Commercial Capital Loan Trust <br>2.520%, 12/26/51 (144A) (a) | 2871506 | 2441877 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.980%, 02/25/50 (144A) (a) | 148704 | 124808 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.240%, 11/25/47 (144A) (a) | 82345 | 67399 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.480%, 12/26/51 (144A) (a) | 284946 | 217314 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/25/47 (144A) (a) | 48491 | 38084 |

---

*See accompanying notes to financial statements.* 

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** | **Commercial Mortgage-Backed Securities—(Continued)** |
|  Wells Fargo Commercial Mortgage Trust <br>1.017%, 12/15/48 (a) (b) | 912407 | 21372 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 08/15/49 (144A) (a) (b) | 1430000 | 52420 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.412%, 05/15/52 (a) (b) | 4848511 | 301564 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.749%, 06/15/36 (144A) (a) | 170000 | 145230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.904%, 01/15/52 (a) | 622000 | 552256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.370%, 1M LIBOR + 0.850%, 12/13/31 (144A) (a) | 490000 | 483297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.408%, 1M LIBOR + 2.090%, 02/15/37 (144A) (a) | 300000 | 281329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.058%, 1M LIBOR + 2.740%, 02/15/37 (144A) (a) | 260000 | 241178 |
|  WF-RBS Commercial Mortgage Trust <br>3.766%, 09/15/57 (a) | 1540000 | 1404072 |
|  |  | 91929513 |
|  Total Mortgage-Backed Securities<br>(Cost $207,891,975) |  | 176825324 |
| **Floating Rate Loans (n)—1.5%** | **Floating Rate Loans (n)—1.5%** | **Floating Rate Loans (n)—1.5%** |
| **Airlines—0.0%** | **Airlines—0.0%** | **Airlines—0.0%** |
|  Kestrel Bidco, Inc. <br>Term Loan B, 7.354%, 1M LIBOR + 3.000%, 12/11/26 | 590 | 541 |
| **Apparel—0.0%** | **Apparel—0.0%** | **Apparel—0.0%** |
|  Fanatics Commerce Intermediate Holdco LLC <br>Term Loan B, 7.634%, 1M LIBOR + 3.250%, 11/24/28 | 871200 | 857043 |
| **Auto Parts & Equipment—0.0%** | **Auto Parts & Equipment—0.0%** | **Auto Parts & Equipment—0.0%** |
|  Emerald Technologies (U.S.) Acquisitionco, Inc. <br>Term Loan, 10.673%, 1M TSFR + 6.250%, 12/29/27 | 601506 | 570929 |
| **Beverages—0.0%** | **Beverages—0.0%** | **Beverages—0.0%** |
|  City Brewing Co. LLC <br>Term Loan, 7.792%, 1M LIBOR + 3.500%, 04/05/28 | 346613 | 155976 |
|  Naked Juice LLC |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2nd Lien Term Loan, 10.680%, 3M TSFR + 6.000%, 01/24/30 | 75000 | 60621 |
|  Triton Water Holdings, Inc. <br>Term Loan, 8.230%, 3M LIBOR + 3.500%, 03/31/28 | 371346 | 346558 |
|  |  | 563155 |
| **Building Materials—0.0%** | **Building Materials—0.0%** | **Building Materials—0.0%** |
|  IPS Corp. <br>Term Loan, 7.884%, 1M LIBOR + 3.500%, 10/02/28 | 145263 | 130519 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2021 2nd Lien Term Loan B, 11.384%, 1M LIBOR + 3.500%, 10/01/29 | 5569 | 4789 |
|  |  | 135308 |
| **Chemicals—0.2%** | **Chemicals—0.2%** | **Chemicals—0.2%** |
|  Aruba Investments, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; USD Term Loan, 8.139%, 1M LIBOR + 3.750%, 11/24/27 | 409813 | 399226 |
|  Bakelite US Holdco, Inc. <br>Term Loan, 8.300%, 3M TSFR + 4.000%, 05/29/29 | 1194995 | 1116573 |
|  Eastman Chemical Co. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2021 Term Loan B, 9.634%, 1M LIBOR + 5.250%, 11/01/28 | 398985 | 330160 |
| **Chemicals—(Continued)** | **Chemicals—(Continued)** | **Chemicals—(Continued)** |
|  LSF11 A5 Holdco LLC <br>Term Loan, 8.052%, 1M TSFR + 3.500%, 10/15/28 | 1606858 | 1554635 |
|  SCIH Salt Holdings, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Incremental Term Loan B, 8.415%, 3M LIBOR + 4.000%, 03/16/27 | 821548 | 801522 |
|  |  | 4202116 |
| **Commercial Services—0.4%** | **Commercial Services—0.4%** | **Commercial Services—0.4%** |
|  AEA International Holdings (Lux) Sarl. <br>Term Loan B, 8.500%, 3M LIBOR + 3.750%, 09/07/28 | 654885 | 646699 |
|  Allied Universal Holdco LLC |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; USD Incremental Term Loan B, 8.173%, 1M LIBOR + 3.750%, 05/12/28 | 611262 | 581387 |
|  American Auto Auction Group LLC |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2nd Lien Term Loan, 13.330%, 3M TSFR+ 8.750%,<br>01/02/29 | 859000 | 665725 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B, 9.730%, 3M TSFR + 5.000%, 12/30/27 | 1598850 | 1263092 |
|  Caliber Home Loans, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Revolver, 7.425%, 3M LIBOR + 3.250%, 07/24/25 | 5350000 | 5323250 |
|  Digital Room Holdings, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2021 Term Loan, 9.634%, 1M LIBOR + 5.250%, 12/21/28 | 513123 | 445775 |
|  DS Parent, Inc. <br>Term Loan, 10.480%, 3M LIBOR + 5.750%, 12/10/28 | 793250 | 756562 |
|  Interface Security Systems LLC <br>Term Loan, 8.750%, 3M LIBOR + 7.000%, 08/07/23 (i) (j) | 1250445 | 1214558 |
|  Signal Parent, Inc. <br>Term Loan B, 7.887%, 1M LIBOR + 3.500%, 04/03/28 | 551600 | 335924 |
|  Vaco Holdings LLC <br>Term Loan, 9.730%, 3M TSFR + 5.000%, 01/21/29 | 611820 | 591553 |
|  |  | 11824525 |
| **Cosmetics/Personal Care—0.0%** | **Cosmetics/Personal Care—0.0%** | **Cosmetics/Personal Care—0.0%** |
|  Conair Holdings LLC <br>Term Loan B, 8.480%, 3M LIBOR + 3.750%, 05/17/28 | 211325 | 178570 |
| **Entertainment—0.2%** | **Entertainment—0.2%** | **Entertainment—0.2%** |
|  ECL Entertainment LLC <br>Term Loan, 11.884%, 1M LIBOR + 7.500%, 05/01/28 | 847100 | 846394 |
|  Great Canadian Gaming Corp. <br>Term Loan, 8.753%, 3M LIBOR + 4.000%, 11/01/26 | 138305 | 136173 |
|  GVC Holdings (Gibraltar), Ltd. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; USD Term Loan B4, 7.230%, 3M LIBOR + 2.500%, 03/29/27 | 280 | 278 |
|  Herschend Entertainment Company LLC <br>Term Loan, 8.190%, 1M LIBOR + 3.750%, 08/27/28 | 329825 | 327351 |
|  J&J Ventures Gaming LLC <br>Term Loan, 8.730%, 3M LIBOR + 4.000%, 04/26/28 | 707050 | 678326 |
|  Maverick Gaming LLC <br>Term Loan B, 12.235%, 3M LIBOR + 7.500%, 09/03/26 | 483875 | 399197 |
|  Twin River Worldwide Holdings, Inc. <br>Term Loan B, 7.542%, 3M LIBOR + 3.250%, 10/02/28 | 2700720 | 2516172 |
|  |  | 4903891 |

---

*See accompanying notes to financial statements.* 

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Floating Rate Loans (n)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Environmental Control—0.0%** | **Environmental Control—0.0%** | **Environmental Control—0.0%** |
|  MIP V Waste Holdings LLC <br>Term Loan B, 7.634%, 1M LIBOR + 3.250%, 12/08/28 | 441663 | $436970 |
| **Food—0.0%** | **Food—0.0%** | **Food—0.0%** |
|  BCPE North Star U.S. HoldCo 2, Inc. <br>Term Loan, 8.730%, 3M LIBOR + 4.000%, 06/09/28 | 794977 | 723430 |
|  Shearer's Foods, Inc. <br>Term Loan, 7.884%, 1M LIBOR + 3.500%, 09/23/27 | 163251 | 156070 |
|  Sovos Brands Intermediate, Inc. <br>Term Loan, 7.915%, 3M LIBOR + 3.500%, 06/08/28 | 139317 | 136298 |
|  |  | 1015798 |
| **Hand/Machine Tools—0.0%** | **Hand/Machine Tools—0.0%** | **Hand/Machine Tools—0.0%** |
|  Apex Tool Group LLC <br>Term Loan, 9.667%, 1M TSFR + 5.250%, 02/08/29 | 1069236 | 928565 |
| **Healthcare-Services—0.0%** | **Healthcare-Services—0.0%** | **Healthcare-Services—0.0%** |
|  Medical Solutions Holdings, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2nd Lien Term Loan, 11.384%, 1M LIBOR + 7.000%, 11/01/29 | 274000 | 254135 |
|  Select Medical Corp. <br>Term Loan B, 6.890%, 1M LIBOR + 2.500%, 03/06/25 | 242054 | 238158 |
|  |  | 492293 |
| **Household Products/Wares—0.0%** | **Household Products/Wares—0.0%** | **Household Products/Wares—0.0%** |
|  Kronos Acquisition Holdings, Inc.<br>1st Lien Term Loan, 10.509%, 3M TSFR + 6.000%, 12/22/26 | 272250 | 264763 |
| **Housewares—0.0%** | **Housewares—0.0%** | **Housewares—0.0%** |
|  Springs Windows Fashions LLC <br>Term Loan B, 8.753%, 3M LIBOR + 4.000%, 10/06/28 | 340428 | 279831 |
| **Internet—0.0%** | **Internet—0.0%** | **Internet—0.0%** |
|  Cablevision Lightpath LLC <br>Term Loan B, 7.568%, 1M LIBOR + 3.250%, 11/30/27 | 201880 | 193300 |
| **Lodging—0.2%** | **Lodging—0.2%** | **Lodging—0.2%** |
|  Aimbridge Acquisition Co., Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Incremental Term Loan B, 9.104%, 1M LIBOR + 4.750%, 02/02/26 | 334317 | 307572 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B, 8.134%, 1M LIBOR + 3.750%, 02/02/26 | 823167 | 750625 |
|  Caesars Resort Collection LLC <br>Term Loan B1, 7.884%, 1M LIBOR + 3.500%, 07/21/25 | 218200 | 217893 |
|  Fertitta Entertainment LLC <br>Term Loan B, 8.323%, 1M TSFR + 4.000%, 01/27/29 | 1545973 | 1471573 |
|  Spectacle Gary Holdings LLC <br>Term Loan B, 8.636%, 1M LIBOR + 4.250%, 11/19/28 | 3057300 | 2950294 |
|  |  | 5697957 |
| **Machinery-Diversified—0.0%** | **Machinery-Diversified—0.0%** | **Machinery-Diversified—0.0%** |
|  Hydrofarm Holdings LLC <br>Term Loan, 9.890%, 3M LIBOR + 5.500%, 09/27/28 | 375210 | 324557 |
| **Media—0.1%** | **Media—0.1%** | **Media—0.1%** |
|  DirecTV Financing LLC <br>Term Loan, 9.384%, 1M LIBOR + 5.000%, 08/02/27 | 781888 | 761790 |
|  Gray Television, Inc. <br>Term Loan D, 7.120%, 1M LIBOR + 3.000%, 12/01/28 | 995940 | 968730 |
|  |  | 1730520 |
| **Mining—0.0%** | **Mining—0.0%** | **Mining—0.0%** |
|  American Rock Salt Co. LLC <br>Term Loan, 8.380%, 1M LIBOR + 4.000%, 06/09/28 | 214730 | 202517 |
| **Packaging & Containers—0.0%** | **Packaging & Containers—0.0%** | **Packaging & Containers—0.0%** |
|  Valcour Packaging LLC | Valcour Packaging LLC | Valcour Packaging LLC |
| &nbsp;&nbsp;&nbsp;&nbsp; 1st Lien Term Loan, 7.982%, 6M LIBOR + 3.750%, 10/04/28 | 349360 | 292589 |
| **Pipelines—0.0%** | **Pipelines—0.0%** | **Pipelines—0.0%** |
|  DT Midstream, Inc. <br>Term Loan B, 6.384%, 1M LIBOR + 2.000%, 06/26/28 | 286318 | 287114 |
| **Real Estate Investment Trusts—0.0%** | **Real Estate Investment Trusts—0.0%** | **Real Estate Investment Trusts—0.0%** |
|  OVG Business Services LLC |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Initial Term Loan, 10.640%, 1M LIBOR + 6.250%, 11/20/28 | 504190 | 473939 |
| **Retail—0.2%** | **Retail—0.2%** | **Retail—0.2%** |
|  LBM Acquisition LLC <br>Term Loan B, 7.121%, 6M LIBOR + 3.750%, 12/17/27 | 1304403 | 1135736 |
|  Park River Holdings, Inc. <br>Term Loan, 6.993%, 3M LIBOR + 3.250%, 12/28/27 | 198968 | 174906 |
|  SRS Distribution, Inc. <br>Term Loan B, 7.884%, 1M LIBOR + 3.500%, 06/02/28 | 938125 | 896613 |
|  Tory Burch LLC <br>Term Loan B, 7.884%, 1M LIBOR + 3.250%, 04/16/28 | 598880 | 554526 |
|  White Cap Buyer LLC <br>Term Loan B, 8.073%, 1M TSFR + 3.750%, 10/19/27 | 1362330 | 1319851 |
|  WOOF Holdings, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1st Lien Term Loan, 8.104%, 1M LIBOR + 3.750%, 12/21/27 | 313418 | 294612 |
|  |  | 4376244 |
| **Software—0.1%** | **Software—0.1%** | **Software—0.1%** |
|  ConnectWise LLC <br>Term Loan B, 8.224%, 1M LIBOR + 3.500%, 09/29/28 | 1089000 | 1038180 |
| **Telecommunications—0.1%** | **Telecommunications—0.1%** | **Telecommunications—0.1%** |
|  Connect Finco Sarl <br>Term Loan B, 7.890%, 1M LIBOR + 3.500%, 12/11/26 | 1436438 | 1421850 |
|  Intelsat Jackson Holdings S.A. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exit Term Loan B, 7.445%, 6M TSFR + 4.250%,<br>02/01/29 | 1178 | 1140 |
|  |  | 1422990 |
|  Total Floating Rate Loans <br>(Cost $45,472,834) |  | 42694205 |

---

*See accompanying notes to financial statements.* 

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Foreign Government—0.9%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **<br>Principal<br>Amount\*** | **Value** |
| **Sovereign—0.9%** | **Sovereign—0.9%** | **Sovereign—0.9%** |
|  Colombia Government International Bonds <br>4.125%, 05/15/51 (f) | 400000 | $239236 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/15/29 | 283000 | 244526 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 04/20/33 | 361000 | 361902 |
|  Colombian TES <br>7.000%, 03/26/31 (COP) | 758500000 | 110364 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.250%, 10/18/34 (COP) | 1321000000 | 179219 |
|  Egypt Government International Bonds <br>7.500%, 02/16/61 | 400000 | 246336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.625%, 05/29/32 | 200000 | 147700 |
|  Hungary Government International Bond <br>5.000%, 02/22/27 (EUR) | 400000 | 424722 |
|  Indonesia Government International Bonds <br>2.850%, 02/14/30 | 662000 | 587605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.050%, 03/12/51 (f) | 1965000 | 1410082 |
|  Mexican Bonos <br>5.750%, 03/05/26 (MXN) | 13700000 | 635910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 06/03/27 (MXN) | 13600000 | 657817 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.500%, 11/18/38 (MXN) | 19900000 | 966207 |
|  Mexico Government International Bonds <br>2.659%, 05/24/31 (f) | 2105000 | 1697743 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/31/50 (f) | 4504000 | 3419334 |
|  Oman Government International Bond <br>4.750%, 06/15/26 | 299000 | 288592 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.750%, 10/28/27 | 300000 | 310482 |
|  Panama Government International Bonds <br>3.875%, 03/17/28 | 1279000 | 1201816 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/56 | 1811000 | 1319395 |
|  Peruvian Government International Bonds <br>3.550%, 03/10/51 | 1587000 | 1128084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 08/25/27 | 1009000 | 965383 |
|  Philippine Government International Bonds <br>3.000%, 02/01/28 | 1834000 | 1706051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 07/06/46 | 2044000 | 1489724 |
|  Republic of South Africa Government Bond <br>8.000%, 01/31/30 (ZAR) | 17643000 | 924866 |
|  Romania Government International Bonds <br>2.125%, 03/07/28 (EUR) | 209000 | 186061 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/26/28 (EUR) | 120000 | 111047 |
|  Russian Federal Bond-OFZ <br>6.100%, 07/18/35 (RUB) | 59043000 | 216157 |
|  Saudi Government International Bond <br>3.450%, 02/02/61 | 309000 | 220935 |
|  Turkey Government International Bond <br>4.875%, 04/16/43 | 458000 | 297039 |
|  Ukraine Government International Bond <br>7.375%, 09/25/34 (144A) | 274000 | 49676 |
|  Uruguay Government International Bonds <br>4.375%, 10/27/27 | 1266587 | 1275406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.100%, 06/18/50 | 1118733 | 1096177 |
|  Total Foreign Government <br>(Cost $30,328,653) |  | 24115594 |
| **Municipals—0.7%** | **Municipals—0.7%** | **Municipals—0.7%** |
|  American Municipal Power, Inc., Build America Bond <br>8.084%, 02/15/50 | 510000 | 656070 |
|  Bay Area Toll Bridge Authority, Build America Bond <br>7.043%, 04/01/50 | 1215000 | 1493583 |
|  Los Angeles, CA Community College District, Build America Bond <br>6.600%, 08/01/42 | 785000 | 941818 |
|  Los Angeles, CA Unified School District, Build America Bond <br>6.758%, 07/01/34 | 2020000 | 2259791 |
|  Massachusetts Housing Finance Agency <br>4.500%, 12/01/48 | 275000 | 255429 |
|  Metropolitan Transportation Authority, Build America Bonds <br>6.668%, 11/15/39 | 170000 | 175590 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.814%, 11/15/40 | 330000 | 344815 |
|  Municipal Electric Authority of Georgia, Build America Bond <br>6.637%, 04/01/57 | 461000 | 493151 |
|  New Jersey Turnpike Authority <br>7.414%, 01/01/40 | 492000 | 609900 |
|  New York City Municipal Water Finance Authority <br>5.882%, 06/15/44 | 270000 | 295504 |
|  New York State Dormitory Authority, Build America Bond <br>5.389%, 03/15/40 | 355000 | 360007 |
|  Port Authority of New York & New Jersey <br>4.960%, 08/01/46 | 1350000 | 1310130 |
|  San Antonio, TX Electric & Gas Systems Revenue, Build America Bond <br>5.808%, 02/01/41 | 875000 | 932276 |
|  State of California <br>4.600%, 04/01/38 | 3765000 | 3544251 |
|  State of California General Obligation Unlimited, Build America Bond <br>7.550%, 04/01/39 | 780000 | 976273 |
|  State of Illinois, General Obligation Unlimited <br>5.100%, 06/01/33 | 3010000 | 2888814 |
|  State of Texas <br>5.517%, 04/01/39 | 820000 | 866077 |
|  University of California <br>4.858%, 05/15/2112 | 239000 | 201470 |
|  Total Municipals <br>(Cost $21,733,786) |  | 18604949 |
| **Common Stocks—0.3%** | **Common Stocks—0.3%** | **Common Stocks—0.3%** |
| **Chemicals—0.0%** | **Chemicals—0.0%** | **Chemicals—0.0%** |
|  Element Solutions, Inc. | 25267 | 459607 |
| **Energy Equipment & Services—0.0%** | **Energy Equipment & Services—0.0%** | **Energy Equipment & Services—0.0%** |
|  Halliburton Co. | 23602 | 928739 |
| **Equity Real Estate Investment Trusts—0.1%** | **Equity Real Estate Investment Trusts—0.1%** | **Equity Real Estate Investment Trusts—0.1%** |
|  DiamondRock Hospitality Co. | 50907 | 416928 |
|  Park Hotels & Resorts, Inc. (d) | 24018 | 283172 |
|  Service Properties Trust | 51813 | 377717 |
|  Sunstone Hotel Investors, Inc. (d) (f) | 21914 | 211689 |
|  Xenia Hotels & Resorts, Inc. | 28065 | 369897 |
|  |  | 1659403 |

---

*See accompanying notes to financial statements.* 

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal<br>Amount\*** | **Value** |
| **Hotels, Restaurants & Leisure—0.0%** | **Hotels, Restaurants & Leisure—0.0%** | **Hotels, Restaurants & Leisure—0.0%** |
|  Caesars Entertainment, Inc. (o) | 4625 | $192400 |
| **Interactive Media & Services—0.0%** | **Interactive Media & Services—0.0%** | **Interactive Media & Services—0.0%** |
|  Genius Sports, Ltd.† (f) (o) | 101806 | 363447 |
| **Machinery—0.0%** | **Machinery—0.0%** | **Machinery—0.0%** |
|  Sarcos Technology and Robotics Corp. (f) (o) | 6978 | 3917 |
| **Oil, Gas & Consumable Fuels—0.2%** | **Oil, Gas & Consumable Fuels—0.2%** | **Oil, Gas & Consumable Fuels—0.2%** |
|  California Resources Corp. (d) | 23011 | 1001208 |
|  Chesapeake Energy Corp. | 6878 | 649077 |
|  Green Plains, Inc. (d) (o) | 18989 | 579164 |
|  Marathon Petroleum Corp. | 7458 | 868037 |
|  OPAL Fuels, Inc. (f) (o) | 1088 | 7921 |
|  Phillips 66 | 8158 | 849085 |
|  |  | 3954492 |
| **Real Estate Management & Development—0.0%** | **Real Estate Management & Development—0.0%** | **Real Estate Management & Development—0.0%** |
|  Forestar Group, Inc. (o) | 12122 | 186800 |
| **Special Purpose Acquisition Companies—0.0%** | **Special Purpose Acquisition Companies—0.0%** | **Special Purpose Acquisition Companies—0.0%** |
|  Pivotal Investment Corp. III - Class A (o) | 26099 | 264148 |
| **Thrifts & Mortgage Finance—0.0%** | **Thrifts & Mortgage Finance—0.0%** | **Thrifts & Mortgage Finance—0.0%** |
|  Mr Cooper Group, Inc. (o) | 8189 | 328624 |
|  Total Common Stocks <br>(Cost $9,569,390) |  | 8341577 |
| **Preferred Stocks—0.1%** | **Preferred Stocks—0.1%** | **Preferred Stocks—0.1%** |
| **Home Builders—0.1%** | **Home Builders—0.1%** | **Home Builders—0.1%** |
|  Dream Finders Homes, Inc.,<br>9.000%, 09/08/26† (i) (j) | 2628 | 2394765 |
| **IT Services—0.0%** | **IT Services—0.0%** | **IT Services—0.0%** |
|  Versa Networks, Inc. - Series E† (i) (j) | 678151 | 1810663 |
|  Total Preferred Stocks <br>(Cost $4,580,704) |  | 4205428 |
| **Convertible Bonds—0.0%** | **Convertible Bonds—0.0%** | **Convertible Bonds—0.0%** |
| **Airlines—0.0%** | **Airlines—0.0%** | **Airlines—0.0%** |
|  GOL Equity Finance S.A. <br>3.750%, 07/15/24† | 100000 | 47650 |
| **Automobiles—0.0%** | **Automobiles—0.0%** | **Automobiles—0.0%** |
|  Freewire Technologies <br>9.000%, 03/31/25† (i) (j) | 1225000 | 1123937 |
| **Energy-Alternate Sources—0.0%** | **Energy-Alternate Sources—0.0%** | **Energy-Alternate Sources—0.0%** |
|  Stem, Inc. <br>0.500%, 12/01/28 | 102000 | 64138 |
|  Total Convertible Bonds <br>(Cost $1,390,435) |  | 1235725 |
| **Warrants—0.0%** | **Warrants—0.0%** | **Warrants—0.0%** |
| **Automobiles—0.0%** |  |  |
|  Freewire Technologies Tranche A, Expires<br>04/26/27† (i) (j) (o) | 136947 | 106819 |
| **Commercial Services & Supplies—0.0%** | **Commercial Services & Supplies—0.0%** | **Commercial Services & Supplies—0.0%** |
|  Aurora Innovation, Inc. (o) | 4108 | 534 |
| **Health Care Providers & Services—0.0%** | **Health Care Providers & Services—0.0%** | **Health Care Providers & Services—0.0%** |
|  Cano Health, Inc. (o) | 36440 | 8017 |
| **Health Care Technology—0.0%** | **Health Care Technology—0.0%** | **Health Care Technology—0.0%** |
|  Pear Therapeutics, Inc., Expires 02/04/26† (o) | 10748 | 1600 |
| **Hotels, Restaurants & Leisure—0.0%** | **Hotels, Restaurants & Leisure—0.0%** | **Hotels, Restaurants & Leisure—0.0%** |
|  Sonder Holdings, Inc. (i) (j) (o) | 20820 | 208 |
| **Interactive Media & Services—0.0%** | **Interactive Media & Services—0.0%** | **Interactive Media & Services—0.0%** |
|  Genius Sports, Ltd., Expires 12/31/28† (o) | 76133 | 68520 |
| **IT Services—0.0%** | **IT Services—0.0%** | **IT Services—0.0%** |
|  Versa Networks, Inc† (i) (j) (o) | 83584 | 215647 |
| **Machinery—0.0%** | **Machinery—0.0%** | **Machinery—0.0%** |
|  Sarcos Technology and Robotics Corp. (o) | 102425 | 3851 |
| **Real Estate Management & Development—0.0%** | **Real Estate Management & Development—0.0%** | **Real Estate Management & Development—0.0%** |
|  Offerpad Solutions, Inc. (o) | 31569 | 710 |
| **Software—0.0%** | **Software—0.0%** | **Software—0.0%** |
|  Embark Technology, Inc. (o) | 3005 | 60 |
|  Latch, Inc. (o) | 43584 | 1856 |
|  |  | 1916 |
| **Special Purpose Acquisition Companies—0.0%** | **Special Purpose Acquisition Companies—0.0%** | **Special Purpose Acquisition Companies—0.0%** |
|  Pivotal Investment Corp. III (o) | 5219 | 26 |
| **Specialty Retail—0.0%** | **Specialty Retail—0.0%** | **Specialty Retail—0.0%** |
|  EVgo, Inc. (o) | 19550 | 13056 |
|  Volta, Inc. (o) | 20140 | 1315 |
|  |  | 14371 |
|  Total Warrants <br>(Cost $876,157) |  | 422219 |

---

*See accompanying notes to financial statements.* 

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Escrow Shares—0.0%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal<br>Amount\*** | **Value** |
| **Oil & Gas—0.0%** | **Oil & Gas—0.0%** | **Oil & Gas—0.0%** |
|  Chesapeake Energy Corp. (g) (i) (j) | 100000 | $0 |
| **Savings & Loans—0.0%** | **Savings & Loans—0.0%** | **Savings & Loans—0.0%** |
|  Washington Mutual Bank (g) (i) (j) | 5027000 | 1 |
|  Washington Mutual Bank (g) (i) (j) | 1310000 | 0 |
|  Washington Mutual Bank (g) (i) (j) | 2440000 | 0 |
|  |  | 1 |
|  Total Escrow Shares <br>(Cost $0) |  | 1 |
| **Short-Term Investments—12.4%** | **Short-Term Investments—12.4%** | **Short-Term Investments—12.4%** |
| **Repurchase Agreement—12.3%** |  |  |
|  Fixed Income Clearing Corp.<br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $348,635,073; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $355,536,671. | 348565360 | 348565360 |
| **Commercial Paper—0.1%** | **Commercial Paper—0.1%** | **Commercial Paper—0.1%** |
|  Citibank N.A. <br>4.060%, 08/01/23 | 1842000 | 1828809 |
|  Total Short-Term Investments<br>(Cost $350,407,360) |  | 350394169 |
| **Securities Lending Reinvestments (p)—0.3%** | **Securities Lending Reinvestments (p)—0.3%** | **Securities Lending Reinvestments (p)—0.3%** |
| **Repurchase Agreements—0.2%** | **Repurchase Agreements—0.2%** | **Repurchase Agreements—0.2%** |
|  BofA Securities, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $1,055,461; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $1,076,068. | 1054969 | 1054969 |
|  Cantor Fitzgerald & Co.<br>Repurchase Agreement dated 12/30/22 at 4.300%, due on 01/03/23 with a maturity value of $1,000,478; collateralized by U.S. Government Agency Obligations with rates ranging from 1.500% - 7.500%, maturity dates ranging from 01/01/23 - 07/20/71, and an aggregate market value of $1,020,000. | 1000000 | 1000000 |
|  National Bank Financial Inc.<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $777,674; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $795,855. | 777301 | 777301 |
| Societe Generale |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $100,047; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $102,181. | 100000 | 100000 |
| **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** |
| Societe Generale |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $500,244; collateralized by various Common Stock with an aggregate market value of $556,424. | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $1,000,490; collateralized by various Common Stock with an aggregate market value of $1,112,951. | 1000000 | 1000000 |
|  TD Prime Services LLC<br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $1,500,733; collateralized by various Common Stock with an aggregate market value of $1,679,529. | 1500000 | 1500000 |
|  |  | 5932270 |
| **Mutual Funds—0.1%** | **Mutual Funds—0.1%** | **Mutual Funds—0.1%** |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (q) | 1000000 | 1000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (q) | 1000000 | 1000000 |
|  HSBC U.S. Government Money Market<br>Fund, Class I 4.130% (q) | 1000000 | 1000000 |
|  STIT-Government & Agency Portfolio,<br>Institutional Class 4.220% (q) | 1000000 | 1000000 |
|  |  | 4000000 |
|  Total Securities Lending Reinvestments <br>(Cost $9,932,270) |  | 9932270 |
|  Total Purchased Options—0.3% (r)<br>(Cost $4,164,297) |  | 7341371 |
|  Total Investments—106.3%<br>(Cost $3,297,799,746) |  | 3019653229 |
|  Other assets and liabilities (net)—(6.3)% |  | (178310071) |
| **Net Assets—100.0%** |  | $2841343158 |

---

---

| | |
|:---|:---|
| \* | Principal and notional amounts stated in U.S. dollars unless otherwise noted. |
| † | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2022, the market value of restricted securities was $7,849,547, which is 0.3% of net assets. See details shown in the Restricted Securities table that follows. |
| (a) | Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above. |
| (b) | Interest only security. |

---

*See accompanying notes to financial statements.* 

**BHFTII-34** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

(c) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement
date.

(d) All or a portion of the security was pledged as collateral against open OTC swap contracts, open OTC option contracts and forward foreign currency exchange contracts. As of December 31, 2022, the market value of
securities pledged was $9,549,173.

(e) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $19,634,983.

(f) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $24,574,617 and the collateral received consisted of cash in the amount of $9,932,270 and
non-cash collateral with a value of $15,631,618. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government
securities that are held in safe-keeping by the lending agent, or a third- party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(g) Non-income producing; security is in default and/or issuer is in bankruptcy.

(h) Payment-in-kind security for which part of the income earned may be paid as additional principal.

(i) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent 0.4% of net assets.

(j) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(k) Perpetual bond with no specified maturity date.

(l) Security is a "step-up" bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.

(m) Principal only security.

(n) Floating rate loans ("Senior Loans") often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual
requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will generally have an expected average life of
approximately two to four years. Senior Loans typically have rates of interest which are determined periodically by reference to a base lending rate, plus a spread. These base rates are primarily the London Interbank Offered Rate and secondarily,
the prime rate offered by one or more major United States banks. Base lending rates may be subject to a floor, or a minimum rate.

(o) Non-income producing security.

(p) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(q) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(r) For a breakout of open positions, see details shown in the Purchased Options table that follows.

(144A) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of
December 31, 2022, the market value of 144A securities was $547,367,279, which is 19.3% of net assets.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Restricted Securities** | **Acquisition<br>Date** | **Shares/<br>Principal<br>Amount** | **Cost** | **Value** |
|  Avianca Midco 2 plc, 9.000%, 12/01/28 | 08/26/21-07/13/22 | 574316 | $525412 | $424994 |
|  Dream Finders Homes, Inc., 9.000%, 09/08/26 | 09/29/21 | 2628 | 2601720 | 2394765 |
|  Freed Hotels & Resorts, 10.000%, 12/02/23 | 12/06/21 | 1158680 | 1144532 | 1115229 |
|  Freewire Technologies, 9.000%, 03/31/25 | 04/27/22 | 1225000 | 1206625 | 1123937 |
|  Freewire Technologies Tranche A Expires 04/26/27 | 04/27/22 | 136947 |  | 106819 |
|  GOL Equity Finance S.A., 3.750%, 07/15/24 | 09/25/20 | 100000 | 81810 | 47650 |
|  Genius Sports, Ltd. | 06/10/21-11/30/21 | 101806 | 1237360 | 363447 |
|  Genius Sports, Ltd. Expires 12/31/28 | 12/07/20-12/17/21 | 76133 | 253226 | 68520 |
|  Gol Finance S.A., 7.000%, 01/31/25 | 03/05/20-10/13/20 | 400000 | 354540 | 176168 |
|  Knollwood CDO, Ltd., 7.109%, 01/10/39 | 02/10/04 | 1077056 | 1077056 | 108 |
|  Pear Therapeutics, Inc. Expires 02/04/26 | 02/02/21 | 10748 | 12027 | 1600 |
|  Versa Networks, Inc | 10/14/22 | 83584 |  | 215647 |
|  Versa Networks, Inc. - Series E | 10/14/22 | 678151 | 1978984 | 1810663 |
|  |  |  |  | $7849547 |

---

**TBA Forward Sale Commitments** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Interest Rate** | **Maturity** | **Face<br>Amount** | **Cost** | **Value** |
|  Uniform Mortgage-Backed Securities 15 Yr. Pool | 3.000% | TBA | $(419000) | $(395940) | $(392412) |
|  Uniform Mortgage-Backed Securities 15 Yr. Pool | 3.500% | TBA | (3808000) | (3678885) | (3642680) |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | 1.500% | TBA | (156100) | (120225) | (120153) |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | 2.500% | TBA | (6390965) | (5486557) | (5413973) |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | 4.000% | TBA | (5340300) | (5061810) | (5007534) |
|  Totals | Totals | Totals | Totals | $(14743417) | $(14576752) |

---

*See accompanying notes to financial statements.* 

**BHFTII-35** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Forward Foreign Currency Exchange Contracts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contracts to Buy** | **Contracts to Buy** | **Counterparty** | **Settlement<br>Date** | **In Exchange<br>for** | **In Exchange<br>for** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
| AUD | 320000 | JPMC | 01/12/23 | USD | 215758 | $2186 |
| AUD | 320000 | JPMC | 01/12/23 | USD | 215758 | 2186 |
| AUD | 322000 | MSIP | 01/12/23 | USD | 216549 | 2757 |
| AUD | 548000 | MSIP | 01/12/23 | USD | 368542 | 4686 |
| CAD | 335475 | CBNA | 01/12/23 | USD | 247000 | 777 |
| CAD | 196967 | JPMC | 01/12/23 | USD | 144000 | 1477 |
| CAD | 196967 | JPMC | 01/12/23 | USD | 144000 | 1477 |
| CAD | 295720 | JPMC | 01/12/23 | USD | 218000 | 414 |
| CAD | 295720 | JPMC | 01/12/23 | USD | 218000 | 414 |
| CLP | 317564500 | CBNA | 01/12/23 | USD | 362000 | 12085 |
| EUR | 343000 | HSBC | 01/12/23 | USD | 364788 | 2582 |
| EUR | 343000 | HSBC | 01/12/23 | USD | 364788 | 2582 |
| EUR | 815000 | HSBC | 01/12/23 | USD | 847757 | 25150 |
| EUR | 815000 | HSBC | 01/12/23 | USD | 847757 | 25150 |
| HUF | 112541660 | BBP | 01/12/23 | USD | 282000 | 18914 |
| HUF | 112541660 | BBP | 01/12/23 | USD | 282000 | 18914 |
| IDR | 29498747434 | CBNA | 03/15/23 | USD | 1894418 | (1253) |
| JPY | 275527 | BOA | 01/12/23 | USD | 2000 | 101 |
| JPY | 62266864 | BOA | 01/12/23 | USD | 452000 | 22902 |
| JPY | 19677050 | CBNA | 01/12/23 | USD | 143000 | 7075 |
| JPY | 19677050 | CBNA | 01/12/23 | USD | 143000 | 7075 |
| JPY | 19851766 | DBAG | 01/12/23 | USD | 146000 | 5407 |
| JPY | 19851766 | DBAG | 01/12/23 | USD | 146000 | 5407 |
| JPY | 19397308 | JPMC | 01/12/23 | USD | 144000 | 3941 |
| JPY | 19397308 | JPMC | 01/12/23 | USD | 144000 | 3941 |
| JPY | 753801000 | UBSA | 03/15/23 | USD | 5778874 | 18658 |
| KRW | 278801600 | BOA | 01/12/23 | USD | 217000 | 3506 |
| KRW | 278801600 | BOA | 01/12/23 | USD | 217000 | 3506 |
| MXN | 2901183 | CBNA | 01/12/23 | USD | 146000 | 2670 |
| MXN | 2901183 | CBNA | 01/12/23 | USD | 146000 | 2670 |
| MXN | 4285819 | HSBC | 01/12/23 | USD | 217000 | 2625 |
| MXN | 4285819 | HSBC | 01/12/23 | USD | 217000 | 2626 |
| MXN | 8162217 | HSBC | 01/12/23 | USD | 414000 | 4270 |
| NOK | 2868204 | DBAG | 01/12/23 | USD | 287000 | 5870 |
| PLN | 649342 | JPMC | 01/12/23 | USD | 145000 | 3126 |
| PLN | 649342 | JPMC | 01/12/23 | USD | 145000 | 3126 |
| THB | 4901343 | CBNA | 01/12/23 | USD | 140500 | 1119 |
| THB | 4901343 | CBNA | 01/12/23 | USD | 140500 | 1119 |
| THB | 5006493 | JPMC | 01/12/23 | USD | 143000 | 1657 |
| THB | 5006493 | JPMC | 01/12/23 | USD | 143000 | 1657 |
| ZAR | 3816868 | CBNA | 01/12/23 | USD | 217000 | 7488 |
| ZAR | 2507954 | GSI | 01/12/23 | USD | 141000 | 6505 |
| ZAR | 8289452 | GSI | 01/12/23 | USD | 486000 | 1542 |
| ZAR | 8630582 | GSI | 01/12/23 | USD | 506000 | 1605 |
| ZAR | 2572870 | JPMC | 01/12/23 | USD | 146000 | 5323 |
| ZAR | 2572870 | JPMC | 01/12/23 | USD | 146000 | 5323 |
| **Contracts to Deliver** | **Contracts to Deliver** |  |  |  |  |  |
| AUD | 217000 | BOA | 01/12/23 | USD | 149264 | 1471 |
| AUD | 217000 | BOA | 01/12/23 | USD | 149264 | 1471 |
| AUD | 216000 | MSIP | 01/12/23 | USD | 146072 | (1040) |
| AUD | 216000 | MSIP | 01/12/23 | USD | 146072 | (1040) |
| AUD | 1584000 | DBAG | 03/15/23 | USD | 1065765 | (15747) |
| BRL | 759070 | BNP | 02/02/23 | USD | 145000 | 2013 |
| CAD | 199206 | HSBC | 01/12/23 | USD | 146000 | (1130) |
| CAD | 199206 | HSBC | 01/12/23 | USD | 146000 | (1130) |
| CAD | 289850 | JPMC | 01/12/23 | USD | 215000 | 921 |
| CAD | 289850 | JPMC | 01/12/23 | USD | 215000 | 921 |

---

*See accompanying notes to financial statements.* 

**BHFTII-36** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Forward Foreign Currency Exchange Contracts—(Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contracts to Deliver** | **Contracts to Deliver** | **Counterparty** | **Settlement<br>Date** | **In Exchange<br>for** | **In Exchange<br>for** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
| CAD | 1581000 | BOA | 03/15/23 | USD | 1159403 | $(8902) |
| CHF | 202629 | BNP | 01/12/23 | USD | 216000 | (3330) |
| CHF | 202629 | BNP | 01/12/23 | USD | 216000 | (3330) |
| CLP | 187310060 | BOA | 01/12/23 | USD | 217000 | (3648) |
| CLP | 130027600 | BOA | 01/12/23 | USD | 146000 | (7170) |
| CLP | 130027600 | BOA | 01/12/23 | USD | 146000 | (7170) |
| CLP | 124668000 | CBNA | 01/12/23 | USD | 144000 | (2857) |
| CLP | 93960000 | CBNA | 01/12/23 | USD | 108000 | (2683) |
| CLP | 194212840 | DBAG | 01/12/23 | USD | 211000 | (17779) |
| CLP | 194212840 | DBAG | 01/12/23 | USD | 211000 | (17779) |
| CLP | 32029583 | GSI | 01/12/23 | USD | 37000 | (730) |
| COP | 1832059973 | BNP | 02/16/23 | USD | 366632 | (8246) |
| EUR | 206000 | DBAG | 01/12/23 | USD | 218140 | (2496) |
| EUR | 206000 | DBAG | 01/12/23 | USD | 218140 | (2496) |
| EUR | 136000 | DBAG | 01/12/23 | USD | 146000 | 337 |
| EUR | 136000 | DBAG | 01/12/23 | USD | 146000 | 337 |
| EUR | 136000 | JPMC | 01/12/23 | USD | 145284 | (379) |
| EUR | 136000 | JPMC | 01/12/23 | USD | 145284 | (379) |
| EUR | 345000 | SSBT | 01/12/23 | USD | 366456 | (3056) |
| EUR | 345000 | SSBT | 01/12/23 | USD | 366456 | (3056) |
| EUR | 267173 | DBAG | 02/21/23 | USD | 286799 | (120) |
| EUR | 70418 | DBAG | 02/21/23 | USD | 73742 | (1880) |
| EUR | 24966 | RBC | 02/21/23 | USD | 26583 | (228) |
| EUR | 395096 | BOA | 03/14/23 | USD | 420548 | (4380) |
| EUR | 8410000 | UBSA | 03/15/23 | USD | 8977170 | (68489) |
| GBP | 119000 | JPMC | 01/12/23 | USD | 146926 | 3031 |
| GBP | 151000 | RBC | 01/12/23 | USD | 181559 | (1032) |
| GBP | 151000 | RBC | 01/12/23 | USD | 181565 | (1025) |
| HUF | 58007434 | GSI | 01/12/23 | USD | 145000 | (10100) |
| HUF | 58007434 | GSI | 01/12/23 | USD | 145000 | (10100) |
| INR | 11381042 | JPMC | 01/12/23 | USD | 139000 | 1493 |
| INR | 11381042 | JPMC | 01/12/23 | USD | 139000 | 1493 |
| MXN | 8029348 | GSI | 01/12/23 | USD | 414000 | 2538 |
| MXN | 4176053 | HSBC | 01/12/23 | USD | 215000 | 999 |
| MXN | 4176053 | HSBC | 01/12/23 | USD | 215000 | 999 |
| MXN | 20861600 | CBNA | 02/21/23 | USD | 1062005 | 680 |
| MXN | 4094569 | CBNA | 02/21/23 | USD | 208443 | 134 |
| MXN | 12505800 | DBAG | 02/21/23 | USD | 643840 | 7613 |
| MXN | 13016259 | JPMC | 02/21/23 | USD | 649822 | (12374) |
| NOK | 2910260 | DBAG | 01/12/23 | USD | 292000 | (5164) |
| NOK | 1399078 | DBAG | 01/12/23 | USD | 143000 | 141 |
| NOK | 1414382 | GSI | 01/12/23 | USD | 144000 | (421) |
| NZD | 228000 | BOA | 01/12/23 | USD | 144051 | (720) |
| NZD | 228000 | BOA | 01/12/23 | USD | 144051 | (720) |
| NZD | 225000 | BOA | 01/12/23 | USD | 144978 | 2112 |
| NZD | 225000 | BOA | 01/12/23 | USD | 144978 | 2112 |
| TWD | 6469180 | CBNA | 02/17/23 | USD | 212000 | 598 |
| TWD | 6469180 | CBNA | 02/17/23 | USD | 212000 | 598 |
| ZAR | 3732058 | BNP | 01/12/23 | USD | 217000 | (2500) |
| ZAR | 3684133 | CBNA | 01/12/23 | USD | 215000 | (1681) |
| ZAR | 3684133 | CBNA | 01/12/23 | USD | 215000 | (1681) |
| ZAR | 3733119 | DBAG | 01/12/23 | USD | 217000 | (2562) |
| ZAR | 2404965 | GSI | 01/12/23 | USD | 141000 | (447) |
| ZAR | 3813528 | HSBC | 01/12/23 | USD | 218000 | (6292) |
| ZAR | 3813528 | HSBC | 01/12/23 | USD | 218000 | (6292) |
| ZAR | 5014691 | BOA | 02/21/23 | USD | 290564 | (3356) |

---

*See accompanying notes to financial statements.* 

**BHFTII-37** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Forward Foreign Currency Exchange Contracts—(Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contracts to Deliver** | **Contracts to Deliver** | **Counterparty** | **Settlement<br>Date** | **In Exchange<br>for** | **In Exchange<br>for** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
| ZAR | 6280953 | DBAG | 02/21/23 | USD | 362912 | $(5226) |
| ZAR | 4677720 | NTC | 02/21/23 | USD | 267946 | (6224) |
| **Cross Currency Contracts to Buy** | **Cross Currency Contracts to Buy** | **Cross Currency Contracts to Buy** | **Cross Currency Contracts to Buy** |  |  |  |
| AUD | 338000 | NWM | 01/12/23 | CAD | 307298 | 3237 |
| EUR | 222000 | HSBC | 01/12/23 | PLN | 1050138 | (1781) |
| EUR | 222000 | UBSA | 01/12/23 | PLN | 1050149 | (1783) |
| JPY | 32624520 | RBC | 01/12/23 | EUR | 228000 | 4624 |
| MXN | 4181302 | UBSA | 01/12/23 | GBP | 180000 | (3388) |
| MXN | 4180974 | UBSA | 01/12/23 | GBP | 180000 | (3404) |
|  Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | $23268 |

---

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Value** | **Notional<br>Value** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  U.S. Treasury Long Bond Futures | 03/22/23 | 809 | USD | 101403094 | $(193166) |
|  U.S. Treasury Note 10 Year Futures | 03/22/23 | 235 | USD | 26389766 | (264197) |
|  U.S. Treasury Note 2 Year Futures | 03/31/23 | 2542 | USD | 521308596 | (336706) |
|  U.S. Treasury Note 5 Year Futures | 03/31/23 | 3062 | USD | 330480705 | (472770) |
|  U.S. Treasury Ultra Long Bond Futures | 03/22/23 | 665 | USD | 89317813 | (577958) |
| **Futures Contracts—Short** |  |  |  |  |  |
|  Euro STOXX 50 Index Futures | 03/17/23 | (129) | EUR | (4882650) | 204688 |
|  Euro STOXX Banks Index Futures | 03/17/23 | (395) | EUR | (1900938) | (67898) |
|  Euro-Bund Futures | 03/08/23 | (1) | EUR | (132930) | 9537 |
|  Euro-Buxl 30 Year Bond Futures | 03/08/23 | (24) | EUR | (3245760) | 714458 |
|  Japanese Government 10 Year Bond Futures | 03/13/23 | (114) | JPY | (16582440000) | 2272978 |
|  S&P 500 Index E-Mini Futures | 03/17/23 | (39) | USD | (7528950) | 210223 |
|  U.S. Treasury Note Ultra 10 Year Futures | 03/22/23 | (16) | USD | (1892500) | 61478 |
|  Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | $1560667 |

---

**Purchased Options** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Foreign Currency Options** | **Strike<br>Price** | **Strike<br>Price** | **Counterparty** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Paid** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  GBP Put/USD Call | USD | 1.210 | JPMC | 01/17/23 | 592000 | GBP | 592000 | $3899 | $6803 | $2904 |
|  GBP Put/USD Call | USD | 1.210 | MSIP | 02/02/23 | 588000 | GBP | 588000 | 10678 | 9378 | (1300) |
|  USD Call/CLP Put | CLP | 920.000 | BOA | 01/13/23 | 690000 | USD | 690000 | 20404 | 823 | (19581) |
|  USD Call/JPY Put | JPY | 137.000 | CBNA | 03/10/23 | 1014000 | USD | 1014000 | 17137 | 5431 | (11706) |
|  USD Put/BRL Call | BRL | 5.300 | HSBC | 02/16/23 | 564000 | USD | 564000 | 16991 | 14049 | (2942) |
|  USD Put/BRL Call | BRL | 4.650 | BOA | 03/23/23 | 88000 | USD | 88000 | 12558 | 4293 | (8265) |
|  USD Put/MXN Call | MXN | 19.350 | HSBC | 01/31/23 | 716000 | USD | 716000 | 9988 | 4391 | (5597) |
|  USD Put/MXN Call | MXN | 19.550 | BOA | 02/07/23 | 876000 | USD | 876000 | 1993 | 3038 | 1045 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $93648 | $48206 | $(45442) |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swaptions** | **Strike<br>Rate** | **Counterparty** | **Floating Rate<br>Index** | **Pay/<br>Receive<br>Floating<br>Rate** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Paid** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - OTC - 1 Yr. IRS | 4.000% | GSI | SOFR | Pay | 06/30/23 | 731697000 | USD | 731697000 | $1573148 | $961304 | $(611844) |
|  Put - OTC - 10 Yr. IRS | 2.480% | GSI | SOFR | Receive | 08/10/23 | 36484000 | USD | 36484000 | 1265995 | 3193977 | 1927982 |
|  Put - OTC - 10 Yr. IRS | 2.510% | GSI | SOFR | Receive | 08/10/23 | 36484000 | USD | 36484000 | 1191203 | 3118682 | 1927479 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $4030346 | $7273963 | $3243617 |

---

*See accompanying notes to financial statements.* 

**BHFTII-38** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Purchased Options—(Continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Options on Exchange-Traded Futures Contracts** | **Strike<br>Price** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Paid** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - U.S. Treasury Note 10 Year Futures | USD | 114.500 | 01/27/23 | 32 | USD | 32000 | $33549 | $6500 | $(27049) |
|  Put - U.S. Treasury Long Bond Futures | USD | 129.000 | 01/27/23 | 3 | USD | 3000 | 6753 | 12702 | 5949 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $40302 | $19202 | $(21100) |

---

**Written Options** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Foreign Currency Options** | **Strike<br>Price** | **Strike<br>Price** | **Counterparty** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Received** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  GBP Call/USD Put | USD | 1.280 | MSIP | 02/02/23 | (588000) | GBP | (588000) | $(3066) | $(333) | $2733 |
|  GBP Put/USD Call | USD | 1.165 | MSIP | 02/02/23 | (588000) | GBP | (588000) | (4078) | (2133) | 1945 |
|  USD Call/CLP Put | CLP | 960.000 | BOA | 01/13/23 | (966000) | USD | (966000) | (15512) | (228) | 15284 |
|  USD Call/JPY Put | JPY | 142.000 | CBNA | 03/10/23 | (1014000) | USD | (1014000) | (6449) | (1484) | 4965 |
|  USD Call/MXN Put | MXN | 20.000 | HSBC | 01/31/23 | (716000) | USD | (716000) | (7053) | (3985) | 3068 |
|  USD Put/BRL Call | BRL | 4.900 | HSBC | 02/16/23 | (846000) | USD | (846000) | (6743) | (2990) | 3753 |
|  USD Put/CLP Call | CLP | 860.000 | BOA | 01/13/23 | (414000) | USD | (414000) | (4636) | (9792) | (5156) |
|  USD Put/HUF Call | HUF | 390.000 | BOA | 02/17/23 | (428000) | USD | (428000) | (11096) | (20718) | (9622) |
|  USD Put/MXN Call | MXN | 19.750 | CBNA | 01/05/23 | (288000) | USD | (288000) | (3443) | (3943) | (500) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(62076) | $(45606) | $16470 |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swaptions** | **Strike<br>Rate** | **Counterparty** | **Floating<br>Rate<br>Index** | **Pay/<br>Receive<br>Floating<br>Rate** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Received** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - OTC - 1 Yr. IRS | 3.400% | GSI | SOFR | Receive | 06/30/23 | (731697000) | USD | (731697000) | $(640235) | $(356776) | $283459 |
|  Call - OTC - 10 Yr. IRS | 2.620% | GSI | SOFR | Receive | 10/27/23 | (46022329) | USD | (46022329) | (569777) | (581501) | (11724) |
|  Call - OTC - 10 Yr. IRS | 3.105% | MSIP | SOFR | Receive | 12/19/23 | (53185800) | USD | (53185800) | (2029038) | (1484006) | 545032 |
|  Put - OTC - 1 Yr. IRS | 3.480% | GSI | SOFR | Pay | 08/10/23 | (328525069) | USD | (328525069) | (1268141) | (3564103) | (2295962) |
|  Put - OTC - 1 Yr. IRS | 3.480% | GSI | SOFR | Pay | 08/10/23 | (328525069) | USD | (328525069) | (1176059) | (3564103) | (2388044) |
|  Put - OTC - 10 Yr. IRS | 4.420% | GSI | SOFR | Pay | 10/27/23 | (46022329) | USD | (46022329) | (830299) | (574612) | 255687 |
|  Put - OTC - 10 Yr. IRS | 3.200% | GSI | SOFR | Pay | 08/10/23 | (24293848) | USD | (24293848) | (516244) | (1078037) | (561793) |
|  Put - OTC - 10 Yr. IRS | 3.100% | GSI | SOFR | Pay | 08/10/23 | (24293848) | USD | (24293848) | (553293) | (1200728) | (647435) |
|  Put - OTC - 10 Yr. IRS | 3.105% | MSIP | SOFR | Pay | 12/19/23 | (53185800) | USD | (53185800) | (2029038) | (2801046) | (772008) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(9612124) | $(15204912) | $(5592788) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Options on Exchange-Traded Futures Contracts** | **Strike<br>Price** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Received** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - U.S. Treasury Note 10 Year Futures | USD | 116.500 | 01/27/23 | (38) | USD | (38000) | $(16567) | $(1781) | $14786 |
|  Call - U.S. Treasury Note 5 Year Futures | USD | 108.250 | 01/27/23 | (10) | USD | (10000) | (10141) | (4844) | 5297 |
|  Put - U.S. Treasury Long Bond Futures | USD | 126.000 | 01/27/23 | (3) | USD | (3000) | (3558) | (6703) | (3145) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(30266) | $(13328) | $16938 |

---

**Swap Agreements** 

**Centrally Cleared Interest Rate Swaps** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pay/Receive<br>Floating Rate** | **Floating<br>Rate Index** | **Payment<br>Frequency** | **Fixed<br>Rate** | **Payment<br>Frequency** | **Maturity<br>Date** | **Notional<br>Amount** | **Notional<br>Amount** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Pay | 1M TIIE | Monthly | 10.170% | Monthly | 09/14/23 | MXN | 37346000 | $(11612) | $2 | $(11614) |
|  Pay | 1M TIIE | Monthly | 10.300% | Monthly | 09/18/23 | MXN | 29751000 | (7940) | 2 | (7942) |
|  Pay | 6M EURIBOR | Annually | &nbsp;&nbsp;&nbsp;&nbsp;2.442% | Annually | 07/14/32 | EUR | 1521000 | (45986) | 19 | (46005) |
|  Receive | 12M SOFR | Annually | &nbsp;&nbsp;&nbsp;&nbsp;3.453% | Annually | 11/02/25 | USD | 106371600 | 566423 | 468 | 565955 |

---

*See accompanying notes to financial statements.* 

**BHFTII-39** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Centrally Cleared Interest Rate Swaps—(Continued)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pay/Receive<br>Floating Rate** | **Floating<br>Rate Index** | **Payment<br>Frequency** | **Fixed<br>Rate** | **Payment<br>Frequency** | **Maturity<br>Date** | **Notional<br>Amount** | **Notional<br>Amount** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Receive | 12M SONIA | Annually | 3.236% | Annually | 10/20/72 | GBP | 1493600 | $(24519) | $19797 | $(44316) |
|  Receive | 12M TONA | Annually | 0.298% | Annually | 04/07/32 | JPY | 857795850 | 332223 | 111 | 332112 |
|  Receive | 12M TONA | Annually | 0.301% | Annually | 04/07/32 | JPY | 864909279 | 333059 | 112 | 332947 |
|  Receive | 12M TONA | Annually | 0.303% | Annually | 04/07/32 | JPY | 861582705 | 330808 | 112 | 330696 |
|  Receive | 12M TONA | Annually | 0.306% | Annually | 04/07/32 | JPY | 848043548 | 323815 | 110 | 323705 |
|  Receive | 12M TONA | Annually | 0.306% | Annually | 04/07/32 | JPY | 752038618 | 287260 | 98 | 287162 |
|  Receive | 12M TONA | Annually | 0.394% | Annually | 05/02/32 | JPY | 520994500 | 170557 | 66 | 170491 |
|  Receive | 12M TONA | Annually | 0.396% | Annually | 05/02/32 | JPY | 520994500 | 169661 | 66 | 169595 |
|  Receive | 12M TONA | Annually | 0.420% | Annually | 06/14/32 | JPY | 1029109758 | 325316 | 124 | 325192 |
|  Receive | 12M TONA | Annually | 0.424% | Annually | 06/14/32 | JPY | 1160485472 | 363617 | 141 | 363476 |
|  Receive | 1M TIIE | Monthly | 9.250% | Monthly | 09/17/32 | MXN | 17648000 | (30372) | 13 | (30385) |
|  Receive | 3M LIBOR | Quarterly | 2.915% | Quarterly | 08/23/26 | USD | 110000 | 4585 | 2 | 4583 |
|  Receive | 3M LIBOR | Quarterly | 3.156% | Quarterly | 10/03/28 | USD | 1279000 | 50636 | 15 | 50621 |
|  Receive | 6M EURIBOR | Semi-Annually | 2.220% | Semi-Annually | 09/12/24 | EUR | 1498000 | 27083 | 416 | 26667 |
|  Receive | 6M WIBOR | Semi-Annually | 5.670% | Semi-Annually | 03/15/28 | PLN | 1199000 | 4840 | 3 | 4837 |
|  Receive | 6M WIBOR | Semi-Annually | 5.920% | Semi-Annually | 03/15/28 | PLN | 3489000 | 5886 | 9 | 5877 |
|  Receive | 6M WIBOR | Semi-Annually | 5.990% | Semi-Annually | 03/15/28 | PLN | 1127000 | 1160 | 3 | 1157 |
|  Receive | 6M WIBOR | Semi-Annually | 6.150% | Semi-Annually | 11/04/24 | PLN | 5327500 | 11610 | 2 | 11608 |
|  Receive | 6M WIBOR | Semi-Annually | 6.870% | Semi-Annually | 09/29/27 | PLN | 895300 | (5501) | 2 | (5503) |
|  Receive | 6M WIBOR | Semi-Annually | 6.990% | Semi-Annually | 09/30/27 | PLN | 1290000 | (9338) | 2 | (9340) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $3173271 | $21695 | $3151576 |

---

**OTC Interest Rate Swaps** 

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pay/Receive <br>Floating Rate** | **Floating<br>Rate Index** | **Payment <br>Frequency** | **Fixed<br>Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Notional<br>Amount** | **Notional<br>Amount** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/<br>(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)<sup>(1)</sup>** |
|  Pay | 1-Day CDI | Maturity | 11.650% | Maturity | 01/02/25 | JPMC | BRL | 1837207 | $(6841) | $– $| (6841) |
|  Pay | 1-Day CDI | Maturity | 11.694% | Maturity | 01/02/25 | CBNA | BRL | 2574000 | (9208) | – | (9208) |
|  Pay | 1-Day CDI | Maturity | 13.965% | Maturity | 01/02/24 | CBNA | BRL | 3840000 | 3372 | – | 3372 |
|  Pay | 1-Day CDI | Maturity | 13.980% | Maturity | 01/02/24 | CBNA | BRL | 3616953 | 3202 | – | 3202 |
|  Pay | 1-Day CDI | Maturity | 14.485% | Maturity | 01/02/24 | GSI | BRL | 3952515 | 6759 | – | 6759 |
|  Pay | 3M CLOIS | Semi-Annually | 1.650% | Semi-Annually | 05/28/23 | BOA | CLP | 3163924000 | (144781) | – | (144781) |
|  Receive | 3M CLOIS | Semi-Annually | 1.420% | Semi-Annually | 04/01/23 | BOA | CLP | 3163924000 | 93555 | – | 93555 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(53942) | $– $| (53942) |

---

(1) There were no upfront premiums paid or (received), therefore Market Value equals Unrealized Appreciation/(Depreciation).

**Centrally Cleared Credit Default Swaps on Credit Indices—Buy Protection (a)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>(Pay) Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  CDX.NA.HY.33.V13 | (5.000%) | Quarterly | 12/20/24 | 0.034% | USD | 4732640 | $(134776) | $39699 | $(174475) |
|  CDX.NA.HY.37.V2 | (5.000%) | Quarterly | 12/20/26 | 0.041% | USD | 4804470 | (139887) | (173890) | 34003 |
|  CDX.NA.HY.39.V1 | (5.000%) | Quarterly | 12/20/27 | 0.048% | USD | 2899000 | (17852) | 72083 | (89935) |
|  ITRX.EUR.38.V1 | (1.000%) | Quarterly | 12/20/27 | 0.009% | EUR | 2890000 | (13723) | 24250 | (37973) |
|  ITRX.EUR.XOVER.38.V1 | (5.000%) | Quarterly | 12/20/27 | 0.047% | EUR | 1425000 | (16595) | (2581) | (14014) |
|  ITRX.FINSR.38.V1 | (1.000%) | Quarterly | 12/20/27 | 0.010% | EUR | 9090000 | (4194) | 123747 | (127941) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(327027) | $83308 | $(410335) |

---

*See accompanying notes to financial statements.* 

**BHFTII-40** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>(Pay) Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Abbott Laboratories <br>3.400%, due 11/30/23 | (1.000%) | Quarterly | 06/20/27 | JPMC | 0.004% | USD | 1237909 | $(32533) | $(25812) | $(6721) |
|  Avis Budget Group, Inc. <br>5.250%, due 03/15/25 | (5.000%) | Quarterly | 12/20/24 | JPMC | 0.025% | USD | 460000 | (21027) | 15224 | (36251) |
|  Avis Budget Group, Inc. <br>5.250%, due 03/15/25 | (5.000%) | Quarterly | 06/20/25 | JPMC | 0.029% | USD | 480000 | (22265) | 29482 | (51747) |
|  Beazer Homes USA, Inc. <br>6.750%, due 03/15/25 | (5.000%) | Quarterly | 06/20/24 | BNP | 0.028% | USD | 250000 | (7659) | (4336) | (3323) |
|  Beazer Homes USA, Inc. <br>6.750%, due 03/15/25 | (5.000%) | Quarterly | 06/20/24 | BNP | 0.028% | USD | 250000 | (7659) | (4679) | (2980) |
|  Beazer Homes USA, Inc. <br>6.750%, due 03/15/25 | (5.000%) | Quarterly | 06/20/24 | BBP | 0.028% | USD | 250000 | (7659) | (4911) | (2748) |
|  Boeing Co. <br>8.750%, due 08/15/21 | (1.000%) | Quarterly | 12/20/24 | BNP | 0.011% | USD | 460000 | 660 | (3619) | 4279 |
|  Boeing Co. <br>8.750%, due 08/15/21 | (1.000%) | Quarterly | 12/20/24 | MSIP | 0.011% | USD | 1185000 | 1699 | (5525) | 7224 |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/24 | BBP | 0.012% | USD | 740000 | 2398 | 7235 | (4837) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/24 | BBP | 0.012% | USD | 526000 | 1705 | 5143 | (3438) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/24 | BBP | 0.012% | USD | 525000 | 1702 | 5233 | (3531) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/24 | BBP | 0.012% | USD | 524000 | 1698 | 5223 | (3525) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/24 | BBP | 0.012% | USD | 520000 | 1685 | 5183 | (3498) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/24 | BBP | 0.012% | USD | 314000 | 1018 | 3070 | (2052) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.025% | USD | 3372600 | 217703 | 222129 | (4426) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.025% | USD | 1319000 | 85142 | 86873 | (1731) |
|  Brazil Government International Bond <br>4.250%, due 01/07/25 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.025% | USD | 169500 | 10941 | 10332 | 609 |
|  Chile Government International Bond <br>3.240%, due 02/06/28 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.011% | USD | 750018 | 2953 | 10239 | (7286) |
|  Colombia Government International Bond <br>10.375%, due 01/28/33 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.027% | USD | 731000 | 53264 | 60331 | (7067) |
|  Colombia Government International Bond <br>10.375%, due 01/28/33 | (1.000%) | Quarterly | 12/20/27 | CBNA | 0.027% | USD | 703044 | 51227 | 47148 | 4079 |
|  Indonesia Government International Bond <br>4.125%, due 01/15/25 | (1.000%) | Quarterly | 12/20/27 | GSI | 0.010% | USD | 849000 | (42) | 6212 | (6254) |
|  Mexico Government International Bond <br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | BOA | 0.013% | USD | 339000 | 4564 | 3876 | 688 |
|  Mexico Government International Bond <br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | MSIP | 0.013% | USD | 777000 | 10461 | 17729 | (7268) |
|  Mexico Government International Bond<br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.013% | USD | 358000 | 4820 | 8297 | (3477) |
|  Mexico Government International Bond<br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | DBAG | 0.013% | USD | 499000 | 6718 | 8799 | (2081) |
|  Mexico Government International Bond<br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | GSI | 0.013% | USD | 288000 | 3877 | 6188 | (2311) |
|  Mexico Government International Bond<br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | GSI | 0.013% | USD | 288000 | 3877 | 6553 | (2676) |
|  Mexico Government International Bond<br>4.150%, due 03/28/27 | (1.000%) | Quarterly | 12/20/27 | MSIP | 0.013% | USD | 290000 | 3904 | 4552 | (648) |

---

*See accompanying notes to financial statements.* 

**BHFTII-41** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>(Pay) Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Philippines Government International Bond <br>10.625%, due 03/16/25 | (1.000%) | Quarterly | 12/20/27 | GSI | 0.010% | USD | 1956035 | $(2589) | $1078 | $(3667) |
|  Tenet Healthcare Corp. <br>6.875%, due 11/15/31 | (5.000%) | Quarterly | 06/20/24 | BBP | 0.022% | USD | 499000 | (19600) | (1727) | (17873) |
|  Turkey Government International Bond <br>11.750%, due 01/15/30 | (1.000%) | Quarterly | 12/20/27 | GSI | 0.051% | USD | 584000 | 93160 | 125429 | (32269) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $444143 | $650949 | $(206806) |

---

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>Receive Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Petroleos Mexicanos <br>6.625%, due 06/15/35 | 1.000% | Quarterly | 12/20/24 | GSI | 0.041% | USD | 179000 | $(9972) | $(15043) | $5071 |

---

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>(Pay) Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  CMBX.NA.AAA.V6 | (0.500%) | Monthly | 05/11/63 | DBAG | 0.004% | USD | 1001000 | $(73) | $145 | $(218) |
|  CMBX.NA.AAA.V6 | (0.500%) | Monthly | 05/11/63 | DBAG | 0.004% | USD | 2340000 | (171) | (883) | 712 |
|  CMBX.NA.AAA.V9 | (0.500%) | Monthly | 09/17/58 | CSI | 0.005% | USD | 1610000 | 721 | 19805 | (19084) |
|  CMBX.NA.AAA.V9 | (0.500%) | Monthly | 09/17/58 | DBAG | 0.005% | USD | 1280000 | 573 | 15972 | (15399) |
|  CMBX.NA.AAA.V9 | (0.500%) | Monthly | 09/17/58 | MSIP | 0.005% | USD | 1960000 | 878 | 26423 | (25545) |
|  CMBX.NA.AAA.V9 | (0.500%) | Monthly | 09/17/58 | MSIP | 0.005% | USD | 1090000 | 488 | 13409 | (12921) |
|  CMBX.NA.AAA.V9 | (0.500%) | Monthly | 09/17/58 | MSIP | 0.005% | USD | 900000 | 403 | 11071 | (10668) |
|  CMBX.NA.BBB-.V6 | (3.000%) | Monthly | 05/11/63 | JPMC | 1.272% | USD | 340000 | 83379 | 34298 | 49081 |
|  CMBX.NA.BBB-.V9 | (3.000%) | Monthly | 09/17/58 | CBNA | 0.114% | USD | 500000 | 94299 | 15992 | 78307 |
|  CMBX.NA.BBB-.V9 | (3.000%) | Monthly | 09/17/58 | MSIP | 0.114% | USD | 105000 | 19803 | 5500 | 14303 |
|  ITRX.JPY.38.V1 | (1.000%) | Quarterly | 12/20/27 | BBP | 0.009% | JPY | 115788000 | (5461) | (4233) | (1228) |
|  ITRX.JPY.38.V1 | (1.000%) | Quarterly | 12/20/27 | JPMC | 0.009% | JPY | 46315200 | (2184) | (1693) | (491) |
|  ITRX.JPY.38.V1 | (1.000%) | Quarterly | 12/20/27 | JPMC | 0.009% | JPY | 69472800 | (3277) | (2536) | (741) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $189378 | $133270 | $56108 |

---

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>Receive Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  CMBX.NA.A.V10 | 2.000% | Monthly | 11/17/59 | DBAG | 0.040% | USD | 660000 | $(42621) | $(30601) | $(12020) |
|  CMBX.NA.A.V10 | 2.000% | Monthly | 11/17/59 | DBAG | 0.040% | USD | 1310000 | (84596) | (59736) | (24860) |
|  CMBX.NA.AAA.V7 | 0.500% | Quarterly | 01/17/47 | CSI | 0.004% | USD | 5000000 | 4207 | (156398) | 160605 |
|  CMBX.NA.BBB-.V10 | 3.000% | Monthly | 11/17/59 | JPMC | 0.088% | USD | 40000 | (6930) | (3575) | (3355) |
|  CMBX.NA.BBB-.V6 | 3.000% | Monthly | 05/11/63 | CSI | 1.272% | USD | 340000 | (83379) | (28926) | (54453) |
|  CMBX.NA.BBB-.V9 | 3.000% | Monthly | 09/17/58 | DBAG | 0.114% | USD | 467000 | (88076) | (57312) | (30764) |
|  CMBX.NA.BBB-.V9 | 3.000% | Monthly | 09/17/58 | MSIP | 0.114% | USD | 138000 | (26027) | (173) | (25854) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(327422) | $(336721) | $9299 |

---

*See accompanying notes to financial statements.* 

**BHFTII-42** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal
to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap
less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront
payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under
the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity or obligation.

(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would
be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt
obligation.

(d) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the
notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap
less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Securities in the amount of $17,478,394 have been received at the custodian bank as collateral for OTC swap contracts, and forward foreign currency exchange contracts.

**Glossary of Abbreviations** 

Counterparties

------

---

| | |
|:---|:---|
| (BBP)— | Barclays Bank plc |
| (BNP)— | BNP Paribas S.A. |
| (BOA)— | Bank of America N.A. |
| (CBNA)— | Citibank N.A. |
| (CSI)— | Credit Suisse International |
| (DBAG)— | Deutsche Bank AG |
| (GSI)— | Goldman Sachs International |
| (HSBC)— | HSBC Bank plc |
| (JPMC)— | JPMorgan Chase Bank N.A. |
| (MSIP)— | Morgan Stanley & Co. International plc |
| (NTC)— | Northern Trust Co. |
| (NWM)— | NatWest Markets plc |
| (RBC)— | Royal Bank of Canada |
| (SSBT)— | State Street Bank and Trust |
| (UBSA)— | UBS AG |

---

Currencies

------

---

| | |
|:---|:---|
| (AUD)— | Australian Dollar |
| (BRL)— | Brazilian Real |
| (CAD)— | Canadian Dollar |
| (CHF)— | Swiss Franc |
| (CLP)— | Chilean Peso |
| (COP)— | Colombian Peso |
| (EUR)— | Euro |
| (GBP)— | British Pound |
| (HUF)— | Hungarian Forint |
| (IDR)— | Indonesian Rupiah |
| (INR)— | Indian Rupee |
| (JPY)— | Japanese Yen |
| (KRW)— | South Korean Won |
| (MXN)— | Mexican Peso |
| (NOK)— | Norwegian Krone |
| (NZD)— | New Zealand Dollar |
| (PLN)— | Polish Zloty |
| (RUB)— | Russian Ruble |
| (THB)— | Thai Baht |
| (TWD)— | Taiwanese Dollar |
| (USD)— | United States Dollar |
| (ZAR)— | South African Rand |

---

Index Abbreviations

------

---

| | |
|:---|:---|
| (CDI)— | Brazil Interbank Deposit Rate |
| (CDX.NA.HY)— | Markit North America High Yield CDS Index |
| (CLOIS)— | Sinacofi Chile Interbank Rate Average |
| (CMBX.NA.A)— | Markit North America A Rated CMBS Index |
| (CMBX.NA.AAA)— | Markit North America AAA Rated CMBS Index |
| (CMBX.NA.BBB-)— | Markit North America BBB- Rated CMBS Index |
| (EURIBOR)— | Euro InterBank Offered Rate |
| (H15)— | U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index |
| (ITRX.EUR)— | Markit iTraxx Europe CDS Index |
| (ITRX.EUR.XOVER)— | Markit iTraxx Europe Crossover CDS Index |
| (ITRX.FINSR)— | Markit iTraxx Europe Senior Financial CDS Index |
| (ITRX.JPY)— | Markit iTraxx Japan CDS Index |
| (LIBOR)— | London Interbank Offered Rate |
| (MTA)— | Monthly Treasury Average Index |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |
| (SOFR30A)— | Secured Overnight Financing Rate 30-Day Average |
| (SONIA)— | Sterling Overnight Index Average Deposit Rate |
| (TIIE)— | Mexican Interbank Equilibrium Interest Rate |
| (TONA)— | Tokyo Overnight Average Rate |
| (TSFR)— | Term Secured Financing Rate |
| (WIBOR)— | Warsaw Interbank Offered Rate |

---

Other Abbreviations

------

---

| | |
|:---|:---|
| (CLO)— | Collateralized Loan Obligation |
| (ARM)— | Adjustable-Rate Mortgage |
| (CDO)— | Collateralized Debt Obligation |
| (CMO)— | Collateralized Mortgage Obligation |
| (CMS)— | Constant Maturity Swap |
| (DAC)— | Designated Activity Company |
| (IRS)— | Interest Rate Swap |
| (REMIC)— | Real Estate Mortgage Investment Conduit |
| (STACR)— | Structured Agency Credit Risk |

---

*See accompanying notes to financial statements.* 

**BHFTII-43** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total U.S. Treasury & Government Agencies\* | $— | $1301931122 | $— | $1301931122 |
| Corporate Bonds & Notes | Corporate Bonds & Notes | Corporate Bonds & Notes | Corporate Bonds & Notes | Corporate Bonds & Notes |
| &nbsp;&nbsp;&nbsp;&nbsp; Advertising |  | 809806 |  | 809806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace/Defense |  | 20270056 |  | 20270056 |
| &nbsp;&nbsp;&nbsp;&nbsp; Agriculture |  | 6208857 |  | 6208857 |
| &nbsp;&nbsp;&nbsp;&nbsp; Airlines |  | 14751780 |  | 14751780 |
| &nbsp;&nbsp;&nbsp;&nbsp; Apparel |  | 40287 |  | 40287 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Manufacturers |  | 16609781 |  | 16609781 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Parts & Equipment |  | 546247 |  | 546247 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks |  | 175116266 |  | 175116266 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages |  | 2622460 |  | 2622460 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology |  | 6801430 |  | 6801430 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals |  | 3468230 |  | 3468230 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services |  | 16175483 |  | 16175483 |
| &nbsp;&nbsp;&nbsp;&nbsp; Computers |  | 6725360 |  | 6725360 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Financial Services |  | 8529704 |  | 8529704 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electric |  | 68339469 |  | 68339469 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electronics |  | 553449 |  | 553449 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy-Alternate Sources |  | 440176 |  | 440176 |
| &nbsp;&nbsp;&nbsp;&nbsp; Engineering & Construction |  | 728212 |  | 728212 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  | 3305609 |  | 3305609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Environmental Control |  | 1548694 |  | 1548694 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food |  | 832506 |  | 832506 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forest Products & Paper |  | 1108077 |  | 1108077 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gas |  | 1719368 |  | 1719368 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Products |  | 5402212 |  | 5402212 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Services |  | 21067543 |  | 21067543 |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Builders |  | 5690362 | 1144179 | 6834541 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products/Wares |  | 285028 |  | 285028 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance |  | 3880713 |  | 3880713 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet |  | 10940258 |  | 10940258 |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies |  | 2846316 |  | 2846316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Iron/Steel |  | 1662383 |  | 1662383 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lodging |  | 857336 | 1346113 | 2203449 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery-Diversified |  | 3412131 |  | 3412131 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media |  | 29012244 |  | 29012244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mining |  | 11931410 |  | 11931410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous Manufacturing |  | 1394853 |  | 1394853 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil & Gas |  | 28937080 | 1953719 | 30890799 |
| &nbsp;&nbsp;&nbsp;&nbsp; Packaging & Containers |  | 1891942 |  | 1891942 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals |  | 17444720 |  | 17444720 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pipelines |  | 57644703 |  | 57644703 |

---

*See accompanying notes to financial statements.* 

**BHFTII-44** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate | $— | $1627185 | $1115229 | $2742414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Investment Trusts |  | 50218263 |  | 50218263 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retail |  | 4088522 |  | 4088522 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors |  | 30766365 |  | 30766365 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shipbuilding |  | 332996 |  | 332996 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software |  | 22305500 |  | 22305500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Telecommunications |  | 49138560 |  | 49138560 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tobacco |  | 2519266 |  | 2519266 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transportation |  | 9711594 |  | 9711594 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trucking & Leasing |  | 6068441 |  | 6068441 |
|  Total Corporate Bonds & Notes |  | 738329233 | 5559240 | 743888473 |
| Asset-Backed Securities | Asset-Backed Securities | Asset-Backed Securities | Asset-Backed Securities | Asset-Backed Securities |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed - Credit Card |  | 840778 |  | 840778 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed - Home Equity |  | 16798626 |  | 16798626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed - Manufactured Housing |  | 8843426 |  | 8843426 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed - Other |  | 280099876 |  | 280099876 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed - Student Loan |  | 23138096 |  | 23138096 |
|  Total Asset-Backed Securities |  | 329720802 |  | 329720802 |
|  Total Mortgage-Backed Securities\* |  | 176825324 |  | 176825324 |
| Floating Rate Loans | Floating Rate Loans | Floating Rate Loans | Floating Rate Loans | Floating Rate Loans |
| &nbsp;&nbsp;&nbsp;&nbsp; Airlines |  | 541 |  | 541 |
| &nbsp;&nbsp;&nbsp;&nbsp; Apparel |  | 857043 |  | 857043 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Parts & Equipment |  | 570929 |  | 570929 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages |  | 563155 |  | 563155 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Materials |  | 135308 |  | 135308 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals |  | 4202116 |  | 4202116 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services |  | 10609967 | 1214558 | 11824525 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cosmetics/Personal Care |  | 178570 |  | 178570 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  | 4903891 |  | 4903891 |
| &nbsp;&nbsp;&nbsp;&nbsp; Environmental Control |  | 436970 |  | 436970 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food |  | 1015798 |  | 1015798 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hand/Machine Tools |  | 928565 |  | 928565 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Services |  | 492293 |  | 492293 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products/Wares |  | 264763 |  | 264763 |
| &nbsp;&nbsp;&nbsp;&nbsp; Housewares |  | 279831 |  | 279831 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet |  | 193300 |  | 193300 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lodging |  | 5697957 |  | 5697957 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery-Diversified |  | 324557 |  | 324557 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media |  | 1730520 |  | 1730520 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mining |  | 202517 |  | 202517 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil & Gas |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Packaging & Containers |  | 292589 |  | 292589 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pipelines |  | 287114 |  | 287114 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Investment Trusts |  | 473939 |  | 473939 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retail |  | 4376244 |  | 4376244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software |  | 1038180 |  | 1038180 |
| &nbsp;&nbsp;&nbsp;&nbsp; Telecommunications |  | 1422990 |  | 1422990 |
|  Total Floating Rate Loans |  | 41479647 | 1214558 | 42694205 |
|  Total Foreign Government\* |  | 24115594 |  | 24115594 |
|  Total Municipals\* |  | 18604949 |  | 18604949 |
|  Total Common Stocks\* | 8341577 |  |  | 8341577 |
|  Total Preferred Stocks\* |  |  | 4205428 | 4205428 |
| Convertible Bonds | Convertible Bonds | Convertible Bonds | Convertible Bonds | Convertible Bonds |
| &nbsp;&nbsp;&nbsp;&nbsp; Airlines |  | 47650 |  | 47650 |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles |  |  | 1123937 | 1123937 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy-Alternate Sources |  | 64138 |  | 64138 |
|  Total Convertible Bonds |  | 111788 | 1123937 | 1235725 |

---

*See accompanying notes to financial statements.* 

**BHFTII-45** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Warrants | Warrants | Warrants | Warrants | Warrants |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | $— | $— | $106819 | $106819 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services & Supplies | 534 |  |  | 534 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 8017 |  |  | 8017 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Technology | 1600 |  |  | 1600 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure |  |  | 208 | 208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interactive Media & Services | 68520 |  |  | 68520 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services |  |  | 215647 | 215647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 3851 |  |  | 3851 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Management & Development | 710 |  |  | 710 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 1916 |  |  | 1916 |
| &nbsp;&nbsp;&nbsp;&nbsp; Special Purpose Acquisition Companies | 26 |  |  | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 14371 |  |  | 14371 |
|  Total Warrants | 99545 |  | 322674 | 422219 |
|  Total Escrow Shares\* |  |  | 1 | 1 |
|  Total Short-Term Investments\* |  | 350394169 |  | 350394169 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 5932270 |  | 5932270 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 4000000 |  |  | 4000000 |
|  Total Securities Lending Reinvestments | 4000000 | 5932270 |  | 9932270 |
| Purchased Options | Purchased Options | Purchased Options | Purchased Options | Purchased Options |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Currency Options at Value |  | 48206 |  | 48206 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Swaptions at Value |  | 7273963 |  | 7273963 |
| &nbsp;&nbsp;&nbsp;&nbsp; Options on Exchange-Traded Futures Contracts at Value | 19202 |  |  | 19202 |
|  Total Purchased Options | $19202 | $7322169 | $— | $7341371 |
|  Total Investments | $12460324 | $2994767067 | $12425838 | $3019653229 |
|  Collateral for Securities Loaned (Liability) | $— | $(9932270) | $— | $(9932270) |
|  TBA Forward Sales Commitments | $— | $(14576752) | $— | $(14576752) |
| Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Exchange Contracts (Unrealized Appreciation) | $— | $303464 | $— | $303464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Exchange Contracts (Unrealized Depreciation) |  | (280196) |  | (280196) |
|  Total Forward Contracts | $— | $23268 | $— | $23268 |
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Appreciation) | $3473362 | $— | $— | $3473362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | (1912695) |  |  | (1912695) |
|  Total Futures Contracts | $1560667 | $— | $— | $1560667 |
| Written Options | Written Options | Written Options | Written Options | Written Options |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Currency Options at Value | $— | $(45606) | $— | $(45606) |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Swaptions at Value |  | (15204912) |  | (15204912) |
| &nbsp;&nbsp;&nbsp;&nbsp; Options on Exchange-Traded Futures Contracts at Value | (13328) |  |  | (13328) |
|  Total Written Options | $(13328) | $(15250518) | $— | $(15263846) |
| Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Swap Contracts (Unrealized Appreciation) | $— | $3340682 | $— | $3340682 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Swap Contracts (Unrealized Depreciation) |  | (599441) |  | (599441) |
|  Total Centrally Cleared Swap Contracts | $— | $2741241 | $— | $2741241 |
| OTC Swap Contracts | OTC Swap Contracts | OTC Swap Contracts | OTC Swap Contracts | OTC Swap Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC Swap Contracts at Value (Assets) | $— | $876815 | $— | $876815 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC Swap Contracts at Value (Liabilities) |  | (634630) |  | (634630) |
|  Total OTC Swap Contracts | $— | $242185 | $— | $242185 |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

During the year ended December 31, 2022, a transfer out of Level 3 in the amount of $3,682,175 was due to the initiation of a broker providing prices based on market indications which have been determined to be a significant observable input.

*See accompanying notes to financial statements.* 

**BHFTII-46** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $2671087869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement at value which equals cost | 348565360 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1065147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (c) | 10769140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash collateral (d) | 3859520 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts at market value (e) | 876815 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on forward foreign currency exchange contracts | 303464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 8750291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities sold (f) | 97516632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 789093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal paydowns | 13867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 17768072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on OTC swap contracts | 270115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 193895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 11718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | $3161840998 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options at value (g) | 15263846 |
| &nbsp;&nbsp;&nbsp;&nbsp; TBA Forward sales commitments, at value | 14576752 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts at market value (h) | 634630 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash collateral for OTC swap, option and forward foreign currency contracts | 144100 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on forward foreign currency exchange contracts | 280196 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 9932270 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 572778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities purchased (f) | 275959321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 524830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 708663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on forward sales commitments | 31954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on OTC swap contracts | 88542 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 836488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 98720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 692447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 320497840 |
|  **Net Assets** | $2841343158 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $3358951985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (517608827) |
|  **Net Assets** | $2841343158 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $2354159092 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 410282688 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 76901378 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 26161279 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 4658065 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 863714 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $89.99 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 88.08 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 89.04 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments, excluding repurchase agreement, was $2,949,234,386.

(b) Includes securities loaned at value of $24,574,617.

(c) Identified cost of cash denominated in foreign currencies was $10,708,287.

(d) Includes collateral of $3,809,520 for centrally cleared swap contracts and $50,000 for OTC swap contracts.

(e) Net premium paid on OTC swap contracts was $626,490.

(f) Included within TBA securities sold is $36,183,713 related to TBA forward sale commitments and included within TBA securities purchased is $21,522,790 related to TBA forward sale commitments.

(g) Premiums received on written options were $9,704,466.

(h) Net premium received on OTC swap contracts was $194,035.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends | $441836 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest (a) | 91570572 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 144783 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 92157191 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 10832680 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 137753 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 790400 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 1139946 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 129112 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 132616 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 63665 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 108322 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 26311 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 25618 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 13395997 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (190834) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 13205163 |
|  **Net Investment Income** | 78952028 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (197715401) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased options | (5595793) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (76414909) |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options | (4031713) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (14494144) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (220452) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency transactions | 5907560 |
|  Net realized gain (loss) | (292564852) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (291328260) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased options | 4051460 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (3496927) |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options | (5657584) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 5778950 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (232329) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency transactions | (281373) |
|  Net change in unrealized appreciation (depreciation) | (291166063) |
|  Net realized and unrealized gain (loss) | (583730915) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(504778887) |

---

(a) Net of foreign withholding taxes of $5,067.

*See accompanying notes to financial statements.* 

**BHFTII-47** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $78952028 | $65829024 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (292564852) | 15644156 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (291166063) | (94697049) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (504778887) | (13223869) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (79174618) | (142633860) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (12754723) | (24157106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (2489604) | (4453779) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (94418945) | (171244745) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (224190087) | 441537912 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (823387919) | 257069298 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 3664731077 | 3407661779 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $2841343158 | $3664731077 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 828712 | $81045920 | 3288324 | $368682181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 864540 | 79174618 | 1330540 | 142633860 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3500402) | (335535124) | (1210376) | (132347085) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (1807150) | $(175314586) | 3408488 | $378968956 |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 289179 | $27400438 | 857087 | $92884144 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 142098 | 12754723 | 229871 | 24157106 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (872740) | (82239899) | (612768) | (65995465) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (441463) | $(42084738) | 474190 | $51045785 |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 46302 | $4481669 | 166093 | $18163220 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 27452 | 2489604 | 41953 | 4453779 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (146119) | (13762036) | (101975) | (11093828) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (72365) | $(6790763) | 106071 | $11523171 |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(224190087) |  | $441537912 |

---

*See accompanying notes to financial statements.* 

**BHFTII-48** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $108.15 | $113.91 | $108.84 | $102.94 | $106.93 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.45 | 2.04 | 2.67 | 3.39 | 3.33 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (17.68) | (2.58) | 6.54 | 6.56 | (3.77) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (15.23) | (0.54) | 9.21 | 9.95 | (0.44) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.81) | (3.05) | (4.14) | (4.05) | (3.55) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.12) | (2.17) | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.93) | (5.22) | (4.14) | (4.05) | (3.55) |
|  **Net Asset Value, End of Period** | $89.99 | $108.15 | $113.91 | $108.84 | $102.94 |
|  **Total Return (%)** (b) | (14.15) | (0.43) | 8.60 | 9.83 | (0.36) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.39 | 0.37 | 0.39 | 0.39 | 0.43 |
|  Gross ratio of expenses to average net assets excluding interest expense (%) | 0.39 | 0.37 | 0.39 | 0.38 | 0.37 |
|  Net ratio of expenses to average net assets (%) (c) | 0.38 | 0.37 | 0.39 | 0.39 | 0.43 |
|  Net ratio of expenses to average net assets excluding interest expense (%) (c) | 0.38 | 0.37 | 0.39 | 0.38 | 0.37 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.55 | 1.86 | 2.40 | 3.18 | 3.22 |
|  Portfolio turnover rate (%) | 376 (d) | 486 (d) | 437 (d) | 482 (d) | 439 (d) |
|  Net assets, end of period (in millions) | $2354.2 | $3024.7 | $2797.7 | $2846.1 | $2977.2 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $105.87 | $111.65 | $106.74 | $101.01 | $104.98 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.16 | 1.73 | 2.34 | 3.06 | 3.02 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (17.30) | (2.54) | 6.42 | 6.44 | (3.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (15.14) | (0.81) | 8.76 | 9.50 | (0.69) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.53) | (2.80) | (3.85) | (3.77) | (3.28) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.12) | (2.17) | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.65) | (4.97) | (3.85) | (3.77) | (3.28) |
|  **Net Asset Value, End of Period** | $88.08 | $105.87 | $111.65 | $106.74 | $101.01 |
|  **Total Return (%)** (b) | (14.36) | (0.69) | 8.34 | 9.55 | (0.62) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.64 | 0.62 | 0.64 | 0.64 | 0.68 |
|  Gross ratio of expenses to average net assets excluding interest expense (%) | 0.64 | 0.62 | 0.64 | 0.63 | 0.62 |
|  Net ratio of expenses to average net assets (%) (c) | 0.63 | 0.62 | 0.64 | 0.64 | 0.68 |
|  Net ratio of expenses to average net assets excluding interest expense (%) (c) | 0.63 | 0.62 | 0.64 | 0.63 | 0.62 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.30 | 1.61 | 2.14 | 2.93 | 2.97 |
|  Portfolio turnover rate (%) | 376 (d) | 486 (d) | 437 (d) | 482 (d) | 439 (d) |
|  Net assets, end of period (in millions) | $410.3 | $539.9 | $516.4 | $468.9 | $455.6 |

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*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-49** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $107.01 | $112.78 | $107.78 | $101.96 | $105.94 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.28 | 1.86 | 2.48 | 3.20 | 3.15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (17.48) | (2.57) | 6.48 | 6.49 | (3.75) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (15.20) | (0.71) | 8.96 | 9.69 | (0.60) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.65) | (2.89) | (3.96) | (3.87) | (3.38) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.12) | (2.17) | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.77) | (5.06) | (3.96) | (3.87) | (3.38) |
|  **Net Asset Value, End of Period** | $89.04 | $107.01 | $112.78 | $107.78 | $101.96 |
|  **Total Return (%)** (b) | (14.27) | (0.60) | 8.44 | 9.66 | (0.52) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.54 | 0.52 | 0.54 | 0.54 | 0.58 |
|  Gross ratio of expenses to average net assets excluding interest expense (%) | 0.54 | 0.52 | 0.54 | 0.53 | 0.52 |
|  Net ratio of expenses to average net assets (%) (c) | 0.53 | 0.52 | 0.54 | 0.54 | 0.58 |
|  Net ratio of expenses to average net assets excluding interest expense (%) (c) | 0.53 | 0.52 | 0.54 | 0.53 | 0.52 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.40 | 1.71 | 2.25 | 3.03 | 3.07 |
|  Portfolio turnover rate (%) | 376 (d) | 486 (d) | 437 (d) | 482 (d) | 439 (d) |
|  Net assets, end of period (in millions) | $76.9 | $100.2 | $93.6 | $95.5 | $96.8 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

(d) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 64%, 82%, 93%, 81%, and 92%, for the years ended December 31, 2022, 2021, 2020, 2019, and
2018, respectively.

*See accompanying notes to financial statements.* 

**BHFTII-50** 

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**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

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

**BHFTII-51** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

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

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

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

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign

**BHFTII-52** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Special Purpose Acquisition Companies -** The Portfolio may invest in Special Purpose Acquisition Companies ("SPAC"). A SPAC is typically a publicly traded company that raises investment capital via an initial public offering (an "IPO") for the purpose of acquiring one or more existing companies (or interests therein) via merger, combination, acquisition or other similar transaction (each a "Transaction"). If the Portfolio purchases shares of a SPAC in an IPO it will generally bear a sales commission, which may be significant. The shares of a SPAC are often issued in "units" that include one share of common stock and one right or warrant (or partial right or warrant) conveying the right to purchase additional shares or partial shares. In some cases, the rights and warrants may be separated from the common stock at the election of the holder, after which they may become freely tradeable. After going public and until a Transaction is completed, a SPAC generally invests the proceeds of its IPO (less a portion retained to cover expenses) in U.S. Government securities, money market securities and cash. To the extent the SPAC is invested in cash or similar securities, this may impact the Portfolio's ability to meet its investment objective(s). If a SPAC does not complete a Transaction within a specified period of time after going public, the SPAC is typically dissolved, at which point the invested funds are returned to the SPAC's shareholders (less certain permitted expenses) and any rights or warrants issued by the SPAC expire worthless. SPACs generally provide their investors with the option of redeeming an investment in the SPAC at or around the time of effecting a Transaction. In some cases, the Portfolio may forfeit its right to receive additional warrants or other interests in the SPAC if it redeems its interest in the SPAC in connection with a Transaction. Because SPACs often do not have an operating history or ongoing business other than seeking a Transaction, the value of their securities may be particularly dependent on the quality of its management and on the ability of the SPAC's management to identify and complete a profitable Transaction. Some SPACs may pursue Transactions only within certain industries or regions, which may increase the volatility of an investment in them. In addition, the securities issued by a SPAC, which may be traded in the OTC market, may become illiquid and/or may be subject to restrictions on resale. Other risks of investing in SPACs include that: a significant portion of the monies raised by the SPAC may be expended during the search for a target Transaction; an attractive Transaction may not be identified at all (or any requisite approvals may not be obtained) and the SPAC may be required to return any remaining monies to shareholders; a Transaction once identified or effected may prove unsuccessful and an investment in the SPAC may lose value; the warrants or other rights with respect to the SPAC held by the Portfolio may expire worthless or may be repurchased or retired by the SPAC at an unfavorable price; and an investment in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC.

**High-Yield Debt Securities -** The Portfolio may invest in high-yield debt securities, or "junk bonds," which are securities that are rated below "investment grade" or, if not rated, are of equivalent quality. A portfolio with high-yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high-yield debt securities are generally less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities

**BHFTII-53** 

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**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio's subadviser may find it more difficult to value or sell lower-rated debt securities and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

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

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

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

**Unfunded Loan Commitments -** The Portfolio may enter into certain credit agreements, all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower's discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of December 31, 2022, the Portfolio had no open unfunded loan commitments.

**Inflation-Indexed Bonds -** The Portfolio may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value that is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities ("TIPS"). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

**Collateralized Obligations -** The Portfolio may invest in collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs"), other collateralized debt obligations ("CDOs"), and other similarly structured securities. CDOs, CBOs and CLOs are types of asset-backed securities. A CBO is a trust that is backed by a diversified pool of high risk, below investment grade fixed-income securities. The collateral can be from many types of fixed-income securities such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans that may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties.

For CDOs, CBOs and CLOs, the cash flow from the trust is split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is typically the "equity" or "first loss" tranche, which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches and equity tranches. Losses are first borne by the equity tranches, next by the junior tranches, and finally by the senior tranches. The risks of an investment in a CBO, CLO or other CDO depend largely on the quality and type of the collateral securities and the class of the instrument in which a Portfolio invests. If some debt instruments go into default and the cash collected by the CBO, CLO or CDO is insufficient to pay all of its investors, those in the lowest, most junior tranches suffer losses first. Since they are partially protected from defaults, senior tranches typically have higher ratings and lower potential yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, more senior tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO securities as a class.

**Mortgage-Related and Other Asset-Backed Securities -** The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities ("SMBS"), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of

**BHFTII-54** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

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

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

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

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

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

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

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $348,565,360, which is reflected as repurchase agreement on the Statement of Assets and Liabilities. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $5,932,270, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

**BHFTII-55** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(186277) | $— | $— | $— | $(186277) |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes | (6439723) |  |  |  | (6439723) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Government | (3306270) |  |  |  | (3306270) |
|  **Total Borrowings** | $**(9932270)** | $**—** | $**—** | $**—** | $**(9932270)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(9932270) |

---

**3. Investments in Derivative Instruments** 

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

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

**BHFTII-56** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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

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

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

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

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

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

**BHFTII-57** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**Swap Agreements -** The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are either privately negotiated in the OTC market ("OTC swaps") or executed in a multilateral or other trade facility platform, such as a registered commodities exchange ("centrally cleared swaps"). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

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

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

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

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

**BHFTII-58** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may be worthless when it expires and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

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

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

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2022, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

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

*Total Return Swaps*: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed

**BHFTII-59** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

or floating rate or the total return from other underlying assets. When the Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when the Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

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

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets &**<br> **Liabilities Location** | **Fair Value** | **Statement of Assets &**<br> **Liabilities Location** | **Fair Value** |
|  Interest Rate | Investments at market value (a) (f) | $7293165 |  |  |
|  | OTC swap contracts at market value (b) | 106888 | OTC swap contracts at market value (b) | $160830 |
|  | Unrealized appreciation on centrally cleared swap contracts (c) (d) | 3306679 | Unrealized depreciation on centrally cleared swap contracts (c) (d) | 155103 |
|  | Unrealized appreciation on futures contracts (d) (e) | 3058451 | Unrealized depreciation on futures contracts (d) (e) | 1844797 |
|  |  |  | Written options at value (g) | 15218240 |
|  Credit | OTC swap contracts at market value (b) | 769927 | OTC swap contracts at market value (b) | 473800 |
|  | Unrealized appreciation on centrally cleared swap contracts (c) (d) | 34003 | Unrealized depreciation on centrally cleared swap contracts (c) (d) | 444338 |
|  Equity | Unrealized appreciation on futures contracts (d) (e) | 414911 | Unrealized depreciation on futures contracts (d) (e) | 67898 |
|  Foreign Exchange | Investments at market value (a) | 48206 |  |  |
|  | Unrealized appreciation on forward foreign currency exchange contracts | 303464 | Unrealized depreciation on forward foreign currency exchange contracts | 280196 |
|  |  |  | Written options at value | 45606 |
| Total |  | $15335694 |  | $18690808 |

---

(a) Represents purchased options which are part of investments at value as shown in the Statement of Assets and Liabilities.

(b) Excludes OTC swap interest receivable of $270,115 and OTC swap interest payable of $88,542.

(c) Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.

(d) Financial instrument not subject to a master netting agreement.

(e) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

(f) Includes exchange-traded options with a value of $19,202 that are not subject to a master netting agreements.

(g) Includes exchange-traded options with a value of $13,328 that are not subject to a master netting agreements.

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

**BHFTII-60** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table presents the Portfolio's derivative assets by counterparty net of amounts available for offset under a master netting agreement ("MNA") (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative Assets<br>subject to an MNA<br>by Counterparty** | **Financial<br>Instruments<br>available for offset** | **Collateral<br>Received†** | **Net<br>Amount\*** |
|  Bank of America N.A. | $143454 | $(143454) | $— | $— |
|  Barclays Bank plc | 422857 | (32720) | (390137) |  |
|  BNP Paribas S.A. | 2673 | (2673) |  |  |
|  Citibank N.A. | 201619 | (24790) | (124100) | 52729 |
|  Credit Suisse International | 4928 | (4928) |  |  |
|  Deutsche Bank AG | 32403 | (32403) |  |  |
|  Goldman Sachs International | 7393826 | (7393826) |  |  |
|  HSBC Bank plc | 85423 | (23600) | (20000) | 41823 |
|  JPMorgan Chase Bank N.A. | 134289 | (108189) |  | 26100 |
|  Morgan Stanley & Co. International plc | 54457 | (54457) |  |  |
|  NatWest Markets plc | 3237 |  |  | 3237 |
|  Royal Bank of Canada | 4624 | (2285) |  | 2339 |
|  UBS AG | 18658 | (18658) |  |  |
|  | $8502448 | $(7841983) | $(534237) | $126228 |

---

The following table presents the Portfolio's derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative Liabilities<br>subject to an MNA<br>by Counterparty** | **Financial<br>Instruments<br>available for offset** | **Collateral<br>Pledged†** | **Net<br>Amount\*\*** |
|  Bank of America N.A. | $211585 | $(143454) | $(10141) | $57990 |
|  Barclays Bank plc | 32720 | (32720) |  |  |
|  BNP Paribas S.A. | 32724 | (2673) | (29641) | 410 |
|  Citibank N.A. | 24790 | (24790) |  |  |
|  Credit Suisse International | 83379 | (4928) | (60141) | 18310 |
|  Deutsche Bank AG | 286786 | (32403) | (248717) | 5666 |
|  Goldman Sachs International | 10954261 | (7393826) | (3352502) | 207933 |
|  HSBC Bank plc | 23600 | (23600) |  |  |
|  JPMorgan Chase Bank N.A. | 108189 | (108189) |  |  |
|  Morgan Stanley & Co. International plc | 4315625 | (54457) | (4261168) |  |
|  Northern Trust Co. | 6224 |  |  | 6224 |
|  Royal Bank of Canada | 2285 | (2285) |  |  |
|  State Street Bank and Trust | 6112 |  |  | 6112 |
|  UBS AG | 77064 | (18658) |  | 58406 |
|  | $16165344 | $(7841983) | $(7962310) | $361051 |

---

---

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

---

**BHFTII-61** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Statement of Operations Location—Net<br>Realized Gain (Loss)** | **Interest Rate** | **Credit** | **Equity** | **Foreign<br>Exchange** | **Total** |
|  Purchased options | $1386366 | $— | $(470390) | $(6511769) | $(5595793) |
|  Forward foreign currency transactions |  |  |  | 5907560 | 5907560 |
|  Swap contracts | (12858995) | (1769997) | 134848 |  | (14494144) |
|  Futures contracts | (75077369) |  | (1337540) |  | (76414909) |
|  Written options | (6910521) |  | 373049 | 2505759 | (4031713) |
|  | $(93460519) | $(1769997) | $(1300033) | $1901550 | $(94628999) |
| **Statement of Operations Location—Net<br>Change in Unrealized Appreciation (Depreciation)** | **Interest Rate** | **Credit** | **Equity** | **Foreign<br>Exchange** | **Total** |
|  Purchased options | $3165864 | $— | $906910 | $(21314) | $4051460 |
|  Forward foreign currency transactions |  |  |  | (281373) | (281373) |
|  Swap contracts | 5746078 | 27832 | 5040 |  | 5778950 |
|  Futures contracts | (3843940) |  | 347013 |  | (3496927) |
|  Written options | (5533408) |  | (484058) | 359882 | (5657584) |
|  | $(465406) | $27832 | $774905 | $57195 | $394526 |

---

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Purchased options | $594573122 |
|  Forward foreign currency transactions | 160224130 |
|  Futures contracts long | 879103830 |
|  Futures contracts short | (403186805) |
|  Swap contracts | 519414196 |
|  Written options | (967507941) |

---

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

**4. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of

**BHFTII-62** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**BHFTII-63** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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

*LIBOR Replacement Risk:* Many financial instruments use or may use a floating rate based on LIBOR, which is the offered rate at which major international banks can obtain wholesale, unsecured funding. LIBOR may be a significant factor in determining the Portfolio's payment obligations under a derivative investment, the cost of financing to the Portfolio or an investment's value or return to the Portfolio, and may be used in other ways that affect the Portfolio's investment performance. In 2017, the UK Financial Conduct Authority (FCA) announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Index Average for GBP LIBOR). Various financial industry groups have been planning for the transition away from LIBOR and markets are developing in response to these new rates, but there are concerns around liquidity of the new rates and obstacles to converting certain securities and transactions to new rates. Neither the effect of the transition process nor its ultimate success can yet be known. The transition away from and eventual elimination of LIBOR may adversely affect the interest rates on amounts of any payments paid or received with respect to, and liquidity and value of, certain assets and liabilities of the Portfolio that are tied to LIBOR. These may include bank loans, floating rate securities, structured securities (including asset-backed and mortgage-backed securities), other debt securities, derivatives, and financing transactions tied to LIBOR, particularly insofar as the documentation governing such instruments does not include "fall back" provisions addressing the transition from LIBOR. The effect of any changes to, or discontinuation of, LIBOR on the Portfolio will vary depending on, among other things (1) existing fallback or termination provisions in individual contracts and (2) the extent to which industry participants adopt new reference rates and fallbacks for both legacy and new products and instruments. The Subadviser may have discretion to determine a successor or substitute reference rate, including any price or other adjustments to account for differences between the successor or substitute reference rate and previous rate. Such successor or substitute reference rate and any adjustments selected may negatively impact the Portfolio's investments, performance or financial condition, and may expose the Portfolio to additional tax, accounting and regulatory risks. The transition away from LIBOR may affect the value, liquidity or return on certain Portfolio investments, reduce the effectiveness of related transactions such as hedges, and may result in costs incurred in connection with closing out positions and entering into new trades, adversely impacting the Portfolio's overall financial condition or results of operations. The transition process may involve, among other things, increased volatility in markets for instruments that continue to rely on LIBOR. It is difficult to predict the full impact of the transition away from LIBOR and the adoption of alternative reference rates on the Portfolio.

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

**BHFTII-64** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $10657863579 | $1143781941 | $10835097391 | $1558763487 |

---

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2022 were as follows:

---

| | |
|:---|:---|
| **Purchases** | **Sales** |
| $9991547226 | $10485325375 |

---

The Portfolio engaged in security transactions with other accounts managed by BlackRock Advisors, LLC, the subadviser to the Portfolio, that amounted to $151,060 in purchases and $512,924 in sales of investments, which are included above, and resulted in net realized losses of $16,633.

**6. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $10832680 | 0.400% | Of the first $1 billion |
|  | 0.350% | Of the next $1 billion |
|  | 0.300% | Of the next $1 billion |
|  | 0.250% | On amounts in excess of $3 billion |

---

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

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | | |
|:---|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** | **Average Daily Net Assets** |
| 0.030% | Of the first $| 1 billion |
| 0.025% | Of the next $| 1 billion |

---

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

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is

**BHFTII-65** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**7. Contractual Obligations** 

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

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $3305606674 |
|  Gross unrealized appreciation | 9776643 |
|  Gross unrealized (depreciation) | (310494199) |
|  Net unrealized appreciation (depreciation) | $(300717556) |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2022**  | **2021** | **2022** | **2021** | **2022** | **2021** |
| $90815649 | $138825997 | $3603296 | $32418748 | $94418945 | $171244745 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $86781114 | $– $| (300747195) | $(303490442) | $(517456523) |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $145,427,331 and accumulated long-term capital losses of $158,063,111.

**BHFTII-66** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**9. Recent Accounting Pronouncement** 

In January 2021, the FASB issued Accounting Standards Update No. 2021-01 ("ASU 2021-01"), "Reference Rate Reform (Topic 848)". ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, as regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective through December 31, 2022, for all entities. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management expects that the adoption of the guidance will not have a material impact on the Portfolio's financial statements.

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-67** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

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

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the BlackRock Bond Income Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the BlackRock Bond Income Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-68** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-69** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-70** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-71** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such

**BHFTII-72** 

------

**Brighthouse Funds Trust II** 

**BlackRock Bond Income Portfolio** 

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

information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

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

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the one-year period ended October 31, 2022 and outperformed its benchmark for the three- and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-73** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Managed By BlackRock Advisors, LLC** 

**Portfolio Manager Annual Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the BlackRock Capital Appreciation Portfolio returned -37.61%, -37.75%, and -37.68%, respectively. The Portfolio's benchmark, the Russell 1000 Growth Index¹, returned -29.14%.

**MARKET ENVIRONMENT/CONDITIONS** 

Large capitalization U.S. growth stocks, as represented by the Russell 1000 Growth Index, finished the year with negative performance of -29.14%.

2022 was a year of soaring inflation, rapid rate hikes and pandemic-induced lockdowns in China. In December, annual inflation slowed for the sixth month straight to 6.5% as measured by the Consumer Price Index, the lowest annual rate since December 2021. Stocks retraced lower in the final month of the year as the Federal Reserve (the "Fed") hiked interest rates another 0.50%, to a target range of 4.25% to 4.50%. This rate hike marked a step down after four consecutive larger increases of 0.75%, yet commentary from Fed Chair Powell reiterated the central bank "has more work to do" in taming inflation. As a result, investors are pricing in expectations for additional rate hikes in 2023 (in other words, a higher terminal federal funds rate) and the potential need for interest rates to stay higher for longer to restore U.S. price stability.

On a style basis, value stocks significantly outperformed growth stocks in 2022. The Russell 1000 Value Index returned -7.54% and the Russell 1000 Growth Index returned -29.14% during the year.

**PERFORMANCE REVIEW/PERIOD END POSITIONING** 

The Portfolio underperformed its benchmark, the Russell 1000 Growth Index, for the period. During 2022, selection in the Information Technology ("IT") and Communication Services sectors, as well as positioning in the Consumer Staples sector detracted from relative performance, while positioning in the Energy sector as well as the Portfolio's cash position were the largest contributors to relative returns.

At the sector level, IT was the largest detractor from relative performance driven by stock selection in the semiconductors & semiconductor equipment industry. Notably, an off-benchmark position in Marvell Technology weighed on performance as the company failed to offer solid guidance due to declining demand post pandemic. Additionally, an overweight position in NVIDIA underperformed as shares of high-multiple technology companies faced pressure. A second key detractor was Communication Services where security selection amongst interactive media & services names detracted from results. Specifically, an off-benchmark position in Snap and an overweight position in Match Group detracted from relative returns. Shares of Match Group struggled during the year as the company posted disappointing earnings amid the deteriorating macro-economic conditions. While the current environment is presenting some unique challenges for Match Group, including foreign exchange headwinds and weakness in the Asia Pacific region, we believe the overall market opportunity remains substantial and that the company is competitively well-positioned. As for Snap, we exited our position as we expect advertising budgets to remain under pressure in an uncertain macro environment. Lastly, underweight positioning in Consumer Staples weighed on results led by our decision to not invest in beverages and food & staples retailing companies given the limited growth and mounting competitive threat.

The largest contributor to relative performance was positioning in Energy, driven by an overweight to the oil and gas exploration and production sub-industry. Specifically, an overweight position in Pioneer Natural Resources Company and an off-benchmark position in EQT bolstered returns. Pioneer Natural Resources is an oil and gas exploration and production company, while EQT is a low-cost natural gas producer, and both companies performed well during the tightly supplied oil and gas environment. Additionally, we sold our position in Pioneer Natural Resources to reallocate capital to other sectors with, in our view, more upside potential. Additionally, the Portfolio's cash position proved advantageous amid declining stock prices. Elsewhere in the Portfolio, an overweight position in TransDigm Group within Industrials and in Visa within IT drove relative results. Visa performed well during the period given higher than typical inflation and the continued recovery in cross-border travel to support earnings even amidst an economic slowdown. Additionally, Visa remains one of our favorite business models given secular tailwinds from digitization of payments, high incremental margins, and strong network efforts.

Due to a combination of Portfolio trading activity and market movements during the year, the largest increases in active weights were in the IT and Health Care sectors. These moves were driven by reducing our underweight to the technology hardware, storage and peripherals industry within IT and a shift from being underweight to overweight in health care equipment and supplies within Health Care. Conversely, the largest reductions in active sector weights were in the Communication Services and Industrials sectors. These changes were primarily driven by reducing exposure to entertainment and professional services, respectively.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Managed By BlackRock Advisors, LLC** 

**Portfolio Manager Annual Commentary\*—(Continued)** 

The largest sector overweight in the Portfolio at period-end was Health Care, followed by Consumer Discretionary. Consumer Staples and Industrials were the largest Portfolio underweights.

**Lawrence Kemp^** 

**Phil Ruvinsky** 

**Caroline Bottinelli** 

Portfolio Managers

*BlackRock Advisors, LLC* 

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

^ Lawrence Kemp announced his plans to retire from BlackRock in April 2023.

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

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX**![LOGO](g400324g89e30.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**BlackRock Capital Appreciation Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -37.61 | 7.68 | 11.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -37.75 | 7.41 | 11.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -37.68 | 7.52 | 11.50 |
| &nbsp;&nbsp;&nbsp;**Russell 1000 Growth Index** | -29.14 | 10.96 | 14.10 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Microsoft Corp.** | **8.8** |
| **Apple, Inc.** | **8.3** |
| **Amazon.com, Inc.** | **6.1** |
| **Visa, Inc. - Class A** | **5.1** |
| **Alphabet, Inc. - Class A** | **4.8** |
| **Intuit, Inc.** | **4.2** |
| **UnitedHealth Group, Inc.** | **3.7** |
| **ASML Holding NV** | **3.3** |
| **S&P Global, Inc.** | **2.9** |
| **MasterCard, Inc. - Class A** | **2.7** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Information Technology** | **44.2** |
| **Health Care** | **18.1** |
| **Consumer Discretionary** | **17.1** |
| **Communication Services** | **6.2** |
| **Financials** | **5.3** |
| **Industrials** | **4.7** |
| **Energy** | **1.7** |
| **Materials** | **1.4** |
| **Real Estate** | **0.6** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **BlackRock Capital Appreciation Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.64% | $1000.00 | $938.10 | $3.13 |
|  | Hypothetical\* | 0.64% | $1000.00 | $1021.98 | $3.26 |
|  Class B (a) | Actual | 0.89% | $1000.00 | $936.80 | $4.34 |
|  | Hypothetical\* | 0.89% | $1000.00 | $1020.72 | $4.53 |
|  Class E (a) | Actual | 0.79% | $1000.00 | $937.60 | $3.86 |
|  | Hypothetical\* | 0.79% | $1000.00 | $1021.22 | $4.02 |

---

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

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

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

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—99.3% of Net Assets** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Aerospace & Defense—2.7%** | | | |
|  TransDigm Group, Inc. | 55989 | $| 35253474 |
| **Automobiles—1.8%** |  |  |  |
|  Tesla, Inc. (a) | 197530 |  | 24331745 |
| **Capital Markets—5.3%** |  |  |  |
|  Blackstone, Inc. (b) | 213756 |  | 15858558 |
|  MSCI, Inc. | 31965 |  | 14869159 |
|  S&P Global, Inc. | 115476 |  | 38677531 |
|  |  |  | 69405248 |
| **Chemicals—1.4%** |  |  |  |
|  Sherwin-Williams Co. (The) | 75059 |  | 17813753 |
| **Commercial Services & Supplies—2.0%** |  |  |  |
|  Cintas Corp. | 33564 |  | 15158174 |
|  Waste Connections, Inc. | 82641 |  | 10954891 |
|  |  |  | 26113065 |
| **Equity Real Estate Investment Trusts—0.6%** |  |  |  |
|  Prologis, Inc. (b) | 67969 |  | 7662145 |
| **Health Care Equipment & Supplies—5.5%** |  |  |  |
|  Boston Scientific Corp. (a) | 446954 |  | 20680561 |
|  IDEXX Laboratories, Inc. (a) | 53203 |  | 21704696 |
|  Intuitive Surgical, Inc. (a) | 115268 |  | 30586364 |
|  |  |  | 72971621 |
| **Health Care Providers & Services—3.9%** |  |  |  |
|  Humana, Inc. | 6332 |  | 3243187 |
|  UnitedHealth Group, Inc. | 91137 |  | 48319015 |
|  |  |  | 51562202 |
| **Hotels, Restaurants & Leisure—3.4%** |  |  |  |
|  Chipotle Mexican Grill, Inc. (a) | 12461 |  | 17289513 |
|  Domino's Pizza, Inc. | 10148 |  | 3515267 |
|  Evolution AB | 245832 |  | 24008890 |
|  |  |  | 44813670 |
| **Interactive Media & Services—6.2%** |  |  |  |
|  Alphabet, Inc. - Class A (a) | 709000 |  | 62555070 |
|  Match Group, Inc. (a) | 461495 |  | 19147428 |
|  |  |  | 81702498 |
| **Internet & Direct Marketing Retail—6.1%** |  |  |  |
|  Amazon.com, Inc. (a) | 950596 |  | 79850064 |
| **IT Services—8.4%** |  |  |  |
|  Adyen NV (a) | 3671 |  | 5079990 |
|  MasterCard, Inc. - Class A | 103325 |  | 35929202 |
|  MongoDB, Inc. (a) (b) | 12897 |  | 2538645 |
|  Visa, Inc. - Class A (b) | 321671 |  | 66830367 |
|  |  |  | 110378204 |
| **Life Sciences Tools & Services—5.2%** |  |  |  |
|  Danaher Corp. | 118141 |  | 31356984 |
|  Lonza Group AG | 34334 |  | 16898436 |
|  Thermo Fisher Scientific, Inc. | 35481 |  | 19539032 |
|  |  |  | 67794452 |
| **Oil, Gas & Consumable Fuels—1.7%** |  |  |  |
|  Cheniere Energy, Inc. | 115934 |  | 17385462 |
|  EQT Corp. (b) | 139149 |  | 4707411 |
|  |  |  | 22092873 |
| **Pharmaceuticals — 3.5%** |  |  |  |
|  AstraZeneca plc (ADR) | 362404 |  | 24570991 |
|  Zoetis, Inc. | 147293 |  | 21585789 |
|  |  |  | 46156780 |
| **Semiconductors & Semiconductor Equipment—9.8%** |  |  |  |
|  Advanced Micro Devices, Inc. (a) | 378206 |  | 24496403 |
|  ASML Holding NV | 79577 |  | 43480873 |
|  KLA Corp. | 70299 |  | 26504832 |
|  Marvell Technology, Inc. | 283042 |  | 10483876 |
|  NVIDIA Corp. | 159032 |  | 23240936 |
|  |  |  | 128206920 |
| **Software—17.7%** |  |  |  |
|  Bill.com Holdings, Inc. (a) | 83852 |  | 9136514 |
|  Cadence Design Systems, Inc. (a) | 151512 |  | 24338888 |
|  Intuit, Inc. | 142451 |  | 55444778 |
|  Microsoft Corp. | 479615 |  | 115021269 |
|  ServiceNow, Inc. (a) | 73548 |  | 28556482 |
|  |  |  | 232497931 |
| **Specialty Retail—0.6%** |  |  |  |
|  Ross Stores, Inc. | 72098 |  | 8368415 |
| **Technology Hardware, Storage & Peripherals—8.3%** | **Technology Hardware, Storage & Peripherals—8.3%** | **Technology Hardware, Storage & Peripherals—8.3%** | **Technology Hardware, Storage & Peripherals—8.3%** |
|  Apple, Inc. | 841151 |  | 109290749 |
| **Textiles, Apparel & Luxury Goods—5.2%** |  |  |  |
|  LVMH Moet Hennessy Louis Vuitton SE | 47609 |  | 34585315 |
|  NIKE, Inc. - Class B | 283799 |  | 33207321 |
|  |  |  | 67792636 |
|  Total Common Stocks <br>(Cost $1,223,599,711) |  |  | 1304058445 |
| **Preferred Stock—0.6%** |  |  |  |
| **Interactive Media & Services—0.6%** |  |  |  |
|  Bytedance, Ltd. - Class E† (a) (c) (d) <br>(Cost $5,371,984) | 49026 |  | 8079824 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investment—0.2%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal**<br> **Amount\*** | **Value** |
| **Repurchase Agreement—0.2%** | | |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $2,150,273; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $2,192,922. | 2149843 | $2149843 |
|  Total Short-Term Investments <br>(Cost $2,149,843) |  | 2149843 |
| **Securities Lending Reinvestments (e)—4.9%** | **Securities Lending Reinvestments (e)—4.9%** |  |
| **Certificates of Deposit—1.8%** |  |  |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (f) | 2000000 | 2000000 |
|  Bank of Nova Scotia<br>4.550%, SOFR + 0.250%, 02/17/23 (f) | 3000000 | 2999864 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.800%, SOFR + 0.500%, 03/03/23 (f) | 3000000 | 3001149 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (f) | 2000000 | 2000142 |
|  Cooperatieve Rabobank UA<br>4.670%, SOFR + 0.370%, 03/20/23 (f) | 2000000 | 2000000 |
|  Nordea Bank Abp (NY)<br>4.850%, SOFR + 0.550%, 02/21/23 (f) | 2000000 | 2000670 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (f) | 1000000 | 999984 |
|  Standard Chartered Bank (NY)<br>4.860%, FEDEFF PRV + 0.530%, 01/17/23 (f) | 2000000 | 2000246 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (f) | 2000000 | 2000656 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (f) | 1000000 | 999956 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (f) | 4000000 | 3999560 |
|  |  | 24002227 |
| **Commercial Paper—0.1%** |  |  |
|  United Overseas Bank, Ltd.<br>4.850%, SOFR + 0.550%, 02/03/23 (f) | 2000000 | 2000482 |
| **Repurchase Agreements—2.9%** |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $9,941,247; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $10,135,342. | 9936610 | 9936610 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $5,022,458; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $5,100,000. | 5000000 | 5000000 |
| **Repurchase Agreements—(Continued)** |  |  |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $3,001,440; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $3,071,608. | 3000000 | 3000000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $4,203,528; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $4,293,988. | 4200000 | 4200000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $1,800,850; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $1,839,251. | 1800000 | 1800000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $8,584,338; collateralized by various Common Stock with an aggregate market value of $9,548,377. | 8580134 | 8580134 |
|  TD Prime Services LLC<br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $5,002,444; collateralized by various Common Stock with an aggregate market value of $5,557,398. | 5000000 | 5000000 |
|  |  | 37516744 |
| **Mutual Funds—0.1%** |  |  |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (g) | 2000000 | 2000000 |
|  Total Securities Lending Reinvestments <br>(Cost $65,516,744) |  | 65519453 |
|  Total Investments—105.0% <br>(Cost $1,296,638,282) |  | 1379807565 |
|  Other assets and liabilities (net)—(5.0)% |  | (66162263) |
| **Net Assets—100.0%** |  | $1313645302 |

---

---

| | |
|:---|:---|
| \* | Principal amount stated in U.S. dollars unless otherwise noted. |
| † | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2022, the market value of restricted securities was $8,079,824, which is 0.6% of net assets. See details shown in the Restricted Securities table that follows. |
| (a) | Non-income producing security. |
| (b) | All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $64,072,562 and the collateral received consisted of cash in the amount of $65,516,744. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Schedule of Investments as of December 31, 2022** 

---

| | |
|:---|:---|
| (c) | Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent 0.6% of net assets. |
| (d) | Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3. |
| (e) | Represents investment of cash collateral received from securities on loan as of December 31, 2022. |
| (f) | Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes |
|  | of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above. |
| (g) | The rate shown represents the annualized seven-day yield as of December 31, 2022. |

---

**Glossary of Abbreviations** 

Index Abbreviations

------

(FEDEFF PRV)— Effective Federal Funds Rate <br> (SOFR)— Secured Overnight Financing Rate

Other Abbreviations

------

(ADR)— American Depositary Receipt

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Restricted Securities** | **Acquisition<br>Date** | **Shares** | **Cost** | **Value** |
|  Bytedance, Ltd. - Class E | 12/10/20 | 49026 | $5371984 | $8079824 |

---

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $35253474 | $— | $— | $35253474 |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | 24331745 |  |  | 24331745 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 69405248 |  |  | 69405248 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 17813753 |  |  | 17813753 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services & Supplies | 26113065 |  |  | 26113065 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Real Estate Investment Trusts | 7662145 |  |  | 7662145 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 72971621 |  |  | 72971621 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 51562202 |  |  | 51562202 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 20804780 | 24008890 |  | 44813670 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interactive Media & Services | 81702498 |  |  | 81702498 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | 79850064 |  |  | 79850064 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 105298214 | 5079990 |  | 110378204 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 50896016 | 16898436 |  | 67794452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 22092873 |  |  | 22092873 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 46156780 |  |  | 46156780 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 128206920 |  |  | 128206920 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 232497931 |  |  | 232497931 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 8368415 |  |  | 8368415 |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology Hardware, Storage & Peripherals | 109290749 |  |  | 109290749 |
| &nbsp;&nbsp;&nbsp;&nbsp; Textiles, Apparel & Luxury Goods | 33207321 | 34585315 |  | 67792636 |
|  Total Common Stocks | 1223485814 | 80572631 |  | 1304058445 |
|  Total Preferred Stock\* |  |  | 8079824 | 8079824 |
|  Total Short-Term Investment\* |  | 2149843 |  | 2149843 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit | $— | $24002227 | $— | $24002227 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 2000482 |  | 2000482 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 37516744 |  | 37516744 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 2000000 |  |  | 2000000 |
|  Total Securities Lending Reinvestments | 2000000 | 63519453 |  | 65519453 |
|  Total Investments | $1225485814 | $146241927 | $8079824 | $1379807565 |
|  Collateral for Securities Loaned (Liability) | $— | $(65516744) | $— | $(65516744) |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1379807565 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 37354 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 397225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 75936 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 5280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1380323360 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 65516744 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 84709 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 705643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 51406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 154240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 165316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 66678058 |
|  **Net Assets** | $1313645302 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1202049322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 111595980 |
|  **Net Assets** | $1313645302 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1067305687 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 214450100 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 31889515 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 43220385 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9637307 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1359556 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $24.69 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 22.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 23.46 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $1,296,638,282.

(b) Includes securities loaned at value of $64,072,562.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $10750642 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 156825 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 180914 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 11088381 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 10881584 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 69958 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 115602 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 628118 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 59307 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 80931 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 13792 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 19659 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 11969958 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (1468050) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 10501908 |
|  **Net Investment Income** | 586473 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments (b) | 29023636 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (27672) |
|  Net realized gain (loss) | 28995964 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (817774776) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (342) |
|  Net change in unrealized appreciation (depreciation) | (817775118) |
|  Net realized and unrealized gain (loss) | (788779154) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(788192681) |

---

(a) Net of foreign withholding taxes of $220,002.

(b) Net of foreign capital gains tax of $28,835.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $586473 | $(4360934) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 28995964 | 430447328 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (817775118) | (24430910) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (788192681) | 401655484 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (342728460) | (224827641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (72719560) | (43766274) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (10974815) | (7410380) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (426422835) | (276004295) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 432788786 | (28304355) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (781826730) | 97346834 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 2095472032 | 1998125198 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $1313645302 | $2095472032 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2073985 | $75245501 | 890101 | $49064283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 12928271 | 342728460 | 4436220 | 224827641 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2091770) | (71487091) | (5941741) | (328073261) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 12910486 | $346486870 | (615420) | $(54181337) |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1213218 | $38839865 | 780003 | $40187214 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3040115 | 72719560 | 925096 | 43766274 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1037865) | (33008809) | (1121996) | (57938054) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3215468 | $78550616 | 583103 | $26015434 |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 125002 | $4240294 | 100184 | $5344413 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 435509 | 10974815 | 151263 | 7410380 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (227543) | (7463809) | (242820) | (12893245) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 332968 | $7751300 | 8627 | $(138452) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $432788786 |  | $(28304355) |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $56.20 | $53.39 | $43.16 | $38.83 | $43.42 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.03 | (0.09) | (0.07) | (0.00)(b) | 0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (20.40) | 10.57 | 16.02 | 12.03 | 1.74 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (20.37) | 10.48 | 15.95 | 12.03 | 1.83 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.10) | (0.06) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (11.14) | (7.67) | (5.72) | (7.60) | (6.36) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (11.14) | (7.67) | (5.72) | (7.70) | (6.42) |
|  **Net Asset Value, End of Period** | $24.69 | $56.20 | $53.39 | $43.16 | $38.83 |
|  **Total Return (%)** (c) | (37.61) | 21.20 | 40.66 | 32.85 | 2.43 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.73 | 0.71 | 0.72 | 0.72 | 0.72 |
|  Net ratio of expenses to average net assets (%) (d) | 0.63 | 0.62 | 0.63 | 0.63 | 0.63 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.08 | (0.17) | (0.14) | (0.00)(e) | 0.21 |
|  Portfolio turnover rate (%) | 65 | 41 | 37 | 43 | 45 |
|  Net assets, end of period (in millions) | $1067.3 | $1703.3 | $1651.2 | $1526.1 | $1327.7 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $52.39 | $50.37 | $41.11 | $37.29 | $41.96 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.05) | (0.22) | (0.17) | (0.10) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (18.95) | 9.91 | 15.15 | 11.52 | 1.71 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (19.00) | 9.69 | 14.98 | 11.42 | 1.69 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (11.14) | (7.67) | (5.72) | (7.60) | (6.36) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (11.14) | (7.67) | (5.72) | (7.60) | (6.36) |
|  **Net Asset Value, End of Period** | $22.25 | $52.39 | $50.37 | $41.11 | $37.29 |
|  **Total Return (%)** (c) | (37.75) | 20.88 | 40.31 | 32.52 | 2.18 |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.98 | 0.96 | 0.97 | 0.97 | 0.97 |
|  Net ratio of expenses to average net assets (%) (d) | 0.88 | 0.87 | 0.88 | 0.88 | 0.88 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.17) | (0.42) | (0.39) | (0.25) | (0.04) |
|  Portfolio turnover rate (%) | 65 | 41 | 37 | 43 | 45 |
|  Net assets, end of period (in millions) | $214.5 | $336.4 | $294.1 | $220.5 | $173.7 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $54.28 | $51.88 | $42.15 | $38.06 | $42.68 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.02) | (0.17) | (0.13) | (0.06) | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (19.66) | 10.24 | 15.58 | 11.78 | 1.71 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (19.68) | 10.07 | 15.45 | 11.72 | 1.74 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.03) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (11.14) | (7.67) | (5.72) | (7.60) | (6.36) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (11.14) | (7.67) | (5.72) | (7.63) | (6.36) |
|  **Net Asset Value, End of Period** | $23.46 | $54.28 | $51.88 | $42.15 | $38.06 |
|  **Total Return (%)** (c) | (37.68) | 21.02 | 40.44 | 32.66 | 2.26 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.88 | 0.86 | 0.87 | 0.87 | 0.87 |
|  Net ratio of expenses to average net assets (%) (d) | 0.78 | 0.77 | 0.78 | 0.78 | 0.78 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.07) | (0.32) | (0.29) | (0.15) | 0.06 |
|  Portfolio turnover rate (%) | 65 | 41 | 37 | 43 | 45 |
|  Net assets, end of period (in millions) | $31.9 | $55.7 | $52.8 | $42.9 | $38.3 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Net investment income (loss) was less than $0.01.

(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(d) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

(e) Ratio of net investment income (loss) to average net assets was less than 0.01%.

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $2,149,843. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $37,516,744. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $1011466727 | $0 | $1003154682 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average daily net assets** |
| $10881584 | 0.730% | Of the first $1 billion |
|  | 0.650% | On amounts in excess of $1 billion |

---

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

**Management Fee Waivers** - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average daily net assets** |
| 0.115% | Of the first $1 billion |
| 0.050% | On the next $500 million |
| 0.090% | On the next $1 billion |
| 0.110% | On amounts in excess of $2.5 billion |

---

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

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

**Transfer Agency Agreement** - Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees** - The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1298889392 |
|  Gross unrealized appreciation | 218664713 |
|  Gross unrealized (depreciation) | (137746540) |
|  Net unrealized appreciation (depreciation) | $80918173 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $174966 | $— | $426247869 | $276004295 | $426422835 | $276004295 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $500032 | $30333247 | $80916941 | $– $| 111750220 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-18** 

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**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

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

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the BlackRock Capital Appreciation Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the BlackRock Capital Appreciation Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-19** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

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

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one- and three-year periods ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the five-year period ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Russell 1000 Growth Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**BlackRock Capital Appreciation Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Managed By BlackRock Advisors, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the BlackRock Ultra-Short Term Bond Portfolio returned 1.44%, 1.18%, and 1.28%, respectively. The Portfolio's benchmark, the Bank of America/Merrill Lynch 3-Month U.S. Treasury Bill Index¹, returned 1.46%.

**MARKET ENVIRONMENT/CONDITIONS** 

On December 31, 2021, the market expected only 0.75% of interest rate hikes during all of 2022, as reflected by federal funds futures contracts. However, by the end of December 2022, the Federal Reserve (the "Fed") in actuality had hiked interest rates by 4.25%. Financial market volatility caused by increasingly aggressive Fed policy, the Russian invasion of Ukraine and year-end funding pressures led to credit spread volatility across the ultra-short curve during the year. 3-month London Inter-bank Offered Rate ("LIBOR") Option Adjusted Spread, a measure of credit premium in the market, began the year at 0.07%, and peaked at nearly 0.50% on November 3, 2022, before ending the year at 0.15%. The 3-month LIBOR started the year at 0.21% and ended the year at 4.77%. The slope of the LIBOR curve as measured from 1-month to 1-year, increased to approximately 1.09% on December 31, 2022 compared with a slope of 0.48% at the end of 2021. The steepening LIBOR curve describes an increase in the yield difference between 1-month and 1-year LIBOR. The Secured Overnight Financing Rate ("SOFR"), which began the year at 0.05%, ended 2022 at 4.30%.

**PORTFOLIO REVIEW/PERIOD END POSITIONING** 

Weighted Average Maturity (the average amount of time until the securities in the Portfolio mature or the coupon resets and describes interest rate sensitivity) decreased significantly, from 50 days at the beginning of the year to 16 days to end 2022. The Weighted Average Life (the average amount of time until the securities in the Portfolio mature and describes credit sensitivity) decreased from 75 days to 59 days over the period. The focus on floating rate and very short-dated investments benefited the Portfolio by allowing the yield to adjust quickly to the changing interest rate environment and by reducing the overall portfolio sensitivity to increasing interest rates. Legacy fixed rate investments matured allowing the yield to move higher and reduced the negative impact to the valuation of the Portfolio. Technical factors in the Treasury bill market persisted during the year with demand continuing to greatly outpace supply. Our allocation to floating rate instruments increased from 19% at the start of the year to 48% at the end of the year and was comprised of securities indexed to SOFR and the federal funds effective rate. These contributed 2.30% to gross yield while fixed rate investments contributed the balance. We continued to focus our investments in the top two to five systemically important issuers domiciled in each of a select group of countries.

**Eric Hiatt** 

**Edward Ingold** 

Portfolio Managers

*BlackRock Advisors, LLC* 

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

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

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE BANK OF AMERICA/MERRILL LYNCH 3-MONTH U.S. T-BILL INDEX**![LOGO](g400324g94w60.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**BlackRock Ultra-Short Term Bond Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | 1.44 | 1.12 | 0.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | 1.18 | 0.87 | 0.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | 1.28 | 0.97 | 0.58 |
| &nbsp;&nbsp;&nbsp;**Bank of America/Merrill Lynch 3-Month U.S. T-Bill Index** | 1.46 | 1.26 | 0.76 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Issuers** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **BofA Securities, Inc.** | **6.6** |
| **JPMorgan Securities LLC** | **4.1** |
| **Bedford Row Funding Corp.** | **3.3** |
| **Bayerische Landesbank (NY)** | **3.1** |
| **National Australia Bank, Ltd.** | **3.0** |
| **Columbia Funding Co. LLC** | **2.8** |
| **Bank of Nova Scotia (Houston)** | **2.7** |
| **Svenska Handelsbanken** | **2.6** |
| **DZ Bank AG (NY)** | **2.6** |
| **Standard Chartered Bank (NY)** | **2.5** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **BlackRock Ultra-Short Term Bond Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,**<br>**2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,**<br>**2022** |
|  Class A (a) | Actual | 0.36% | $1000.00 | $1014.20 | $1.83 |
|  | Hypothetical\* | 0.36% | $1000.00 | $1023.39 | $1.84 |
|  Class B (a) | Actual | 0.61% | $1000.00 | $1013.00 | $3.10 |
|  | Hypothetical\* | 0.61% | $1000.00 | $1022.13 | $3.11 |
|  Class E (a) | Actual | 0.51% | $1000.00 | $1013.40 | $2.59 |
|  | Hypothetical\* | 0.51% | $1000.00 | $1022.64 | $2.60 |

---

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

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

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

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investments—103.4% of Net Assets** 

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| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Certificate of Deposit—33.1%** | | |
|  Banco Santander S.A.<br>4.699%, SOFR + 0.550%, 02/17/23 (a) | 7000000 | $7002504 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.920%, SOFR + 0.620%, 01/18/23 (a) | 7000000 | 7001662 |
|  Bank of Montreal (Chicago)<br>4.800%, SOFR + 0.500%, 05/05/23 (a) | 4000000 | 4001501 |
|  Bank of Nova Scotia (Houston)<br>4.800%, SOFR + 0.500%, 05/05/23 (a) | 14000000 | 14007990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/16/23 (a) | 7000000 | 7002840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.040%, 08/07/23 | 5000000 | 5008812 |
|  Barclays Bank plc<br>4.920%, SOFR + 0.620%, 04/05/23 (a) | 4500000 | 4502916 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.600%, SOFR + 0.300%, 01/06/23 (a) | 3500000 | 3500148 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (a) | 7000000 | 7003377 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, SOFR + 0.650%, 07/03/23 (a) | 5000000 | 5009573 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.050%, SOFR + 0.750%, 07/21/23 (a) | 1500000 | 1503929 |
|  Citibank N.A.<br>4.160%, 09/01/23 | 4500000 | 4460989 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.920%, SOFR + 0.620%, 09/21/23 (a) | 3000000 | 2999448 |
|  Credit Agricole Corporate and Investment Bank (NY)<br>4.800%, SOFR + 0.500%, 03/17/23 (a) | 7000000 | 7004734 |
|  Credit Industriel et Commercial S.A.<br>4.790%, SOFR + 0.490%, 07/10/23 (a) | 10000000 | 10002798 |
|  Credit Suisse AG<br>4.493%, SOFR + 0.280%, 02/10/23 (a) | 7000000 | 6995568 |
|  KBC BANK N.V.<br>4.320%, 01/19/23 | 15000000 | 15000202 |
|  Landesbank Baden-Wuettertemberg (NY)<br>4.300%, 01/04/23 | 17000000 | 16999956 |
|  Lloyds Bank Corporate Markets plc<br>4.570%, SOFR + 0.270%, 01/24/23 (a) | 3400000 | 3400218 |
|  Mitsubishi UFJ Trust & Banking Corp.<br>4.870%, SOFR + 0.570%, 06/20/23 (a) | 6000000 | 6006543 |
|  MUFG Bank, Ltd.(NY)<br>4.580%, SOFR + 0.280%, 01/23/23 (a) | 6000000 | 6000327 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, SOFR + 0.300%, 03/10/23 (a) | 4000000 | 3999431 |
|  Natixis S.A.(New York)<br>4.580%, SOFR + 0.280%, 02/07/23 (a) | 6000000 | 6000708 |
|  Nordea Bank Abp (NY)<br>4.790%, SOFR + 0.490%, 05/24/23 (a) | 6000000 | 6002785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.820%, SOFR + 0.520%, 05/12/23 (a) | 10000000 | 10005606 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.880%, SOFR + 0.580%, 03/01/23 (a) | 4000000 | 4002133 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.880%, SOFR + 0.580%, 03/02/23 (a) | 4500000 | 4502421 |
|  Royal Bank of Canada (NY)<br>5.100%, SOFR + 0.800%, 10/19/23 (a) | 3000000 | 3005494 |
|  Standard Chartered Bank (NY)<br>4.600%, SOFR + 0.300%, 03/13/23 (a) | 4500000 | 4500583 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 05/04/23 (a) | 6000000 | 6005310 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, SOFR + 0.600%, 03/01/23 (a) | 10000000 | 10006225 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.910%, SOFR + 0.610%, 01/31/23 (a) | 4000000 | 4001591 |
|  Sumitomo Mitsui Banking Corp.(NY)<br>4.570%, SOFR + 0.270%, 01/19/23 (a) | 5500000 | 5499837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.710%, SOFR + 0.410%, 03/14/23 (a) | 12000000 | 12000736 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, SOFR + 0.600%, 05/03/23 (a) | 6000000 | 6005208 |
| **Certificate of Deposit—(Continued)** |  |  |
|  Sumitomo Mitsui Trust Bank, Ltd. (NY)<br>4.760%, SOFR + 0.460%, 02/22/23 (a) | 7000000 | 7002486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 01/06/23 (a) | 10000000 | 10000906 |
|  Svenska Handelsbanken<br>4.780%, SOFR + 0.480%, 01/27/23 (a) | 20000000 | 20005092 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.960%, SOFR + 0.660%, 07/03/23 (a) | 5000000 | 5007659 |
|  Swedbank AB<br>4.910%, SOFR + 0.610%, 04/19/23 (a) | 9000000 | 9006861 |
|  Toronto-Dominion Bank (NY)<br>2.800%, 03/09/23 | 5600000 | 5602892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.800%, 05/08/23 | 4000000 | 3970450 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.840%, 06/02/23 | 5000000 | 5005107 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 05/01/23 | 4000000 | 3984833 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 05/01/23 | 4000000 | 4005215 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.120%, 08/28/23 | 4000000 | 3969357 |
|  Wells Fargo Bank N.A.<br>4.650%, SOFR + 0.350%, 03/23/23 (a) | 6000000 | 6000808 |
|  Westpac Banking Corp. (NY)<br>4.750%, 07/13/23 | 8000000 | 8003599 |
|  |  | 321519368 |
| **Commercial Paper—59.1%** |  |  |
|  Alinghi Funding Co. LLC<br>3.034%, 05/17/23 (b) | 3000000 | 2944283 |
|  Antalis S.A.<br>3.661%, 01/06/23 (b) | 12000000 | 11989897 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.391%, 03/16/23 (b) | 5000000 | 4950853 |
|  Australia & New Zealand Banking Group, Ltd.<br>4.670%, SOFR + 0.370%, 04/26/23 (a) | 9000000 | 9002013 |
|  Autobahn Funding Co. LLC<br>3.195%, 01/04/23 (b) | 5000000 | 4996995 |
|  Banco Santander S.A.<br>3.249%, SOFR + 0.420%, 03/20/23 (a) | 10500000 | 10504066 |
|  Bank of Montreal (Chicago)<br>2.800%, 05/12/23 (b) | 4000000 | 3970005 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 06/06/23 (a) | 7000000 | 7006637 |
|  Bank of Nova Scotia (The)<br>4.810%, SOFR + 0.510%, 01/03/23 (a) | 3000000 | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.960%, SOFR + 0.660%, 08/18/23 (a) | 4000000 | 4004560 |
|  Barton Capital S.A.<br>3.449%, 01/05/23 (b) | 19000000 | 18986292 |
|  Bayerische Landesbank (NY)<br>2.928%, 01/03/23 (b) | 30000000 | 29985580 |
|  Bedford Row Funding Corp.<br>3.294%, 01/04/23 (b) | 32000000 | 31980813 |
|  BPCE S.A.<br>1.396%, 02/22/23 (b) | 7000000 | 6953149 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.231%, 09/01/23 (b) | 5000000 | 4824723 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, SOFR + 0.600%, 03/03/23 (a) | 5000000 | 5003394 |
|  Cancara Asset Securitisation LLC<br>3.807%, 01/09/23 (b) | 15000000 | 14981871 |
|  Cargill, Inc.<br>2.887%, 01/03/23 (b) | 20000000 | 19990464 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investments—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Commercial Paper—(Continued)** | | |
|  Caterpillar Financial Services Corp.<br>4.197%, 01/25/23 (b) | 15000000 | $14953243 |
|  Chariot Funding LLC<br>4.830%, SOFR + 0.530%, 01/20/23 (a) | 10000000 | 10001699 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.880%, SOFR + 0.580%, 05/31/23 (a) | 8000000 | 8006533 |
|  Citigroup Global Markets, Inc.<br>2.976%, 01/09/23 (b) | 6000000 | 5992782 |
|  Columbia Funding Co. LLC<br>3.218%, 01/04/23 (b) | 14000000 | 13991586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.568%, 01/06/23 (b) | 13000000 | 12989055 |
|  Commonwealth Bank of Australia<br>4.750%, SOFR + 0.450%, 02/21/23 (a) | 5000000 | 5001682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, SOFR + 0.600%, 07/13/23 (144A) (a) | 6000000 | 6006295 |
|  Dexia Credit Local S.A.<br>4.044%, 01/17/23 (b) | 5000000 | 4989165 |
|  DNB Bank ASA<br>4.790%, SOFR + 0.490%, 05/26/23 (a) | 9000000 | 9008620 |
|  DZ Bank AG (NY)<br>2.900%, 01/03/23 (b) | 25000000 | 24988242 |
|  HSBC Bank plc<br>4.900%, SOFR + 0.600%, 06/06/23 (a) | 6000000 | 6001342 |
|  ING US Funding LLC<br>4.820%, SOFR + 0.520%, 02/27/23 (a) | 8000000 | 8002625 |
|  LMA-Americas LLC<br>4.410%, 02/06/23 (b) | 3000000 | 2985994 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.317%, 04/28/23 (b) | 10000000 | 9837135 |
|  Mackinac Funding Co. LLC<br>3.530%, 01/05/23 (b) | 5000000 | 4996393 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.843%, 01/09/23 (b) | 15000000 | 14981954 |
|  Macquarie Bank, Ltd.<br>4.650%, SOFR + 0.350%, 01/04/23 (a) | 4000000 | 4000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 01/18/23 (144A) (a) | 14000000 | 14002052 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, SOFR + 0.600%, 03/03/23 (a) | 4000000 | 4002352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, SOFR + 0.600%, 06/22/23 (a) | 9500000 | 9510269 |
|  Manhattan Asset Funding Co. LLC<br>4.580%, SOFR + 0.280%, 01/06/23 (144A) (a) | 5500000 | 5499975 |
|  Matchpoint Finance plc<br>3.648%, 02/21/23 (b) | 6000000 | 5960444 |
|  National Australia Bank, Ltd.<br>4.670%, SOFR + 0.370%, 04/13/23 (a) | 5000000 | 5001676 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, SOFR + 0.400%, 05/12/23 (a) | 6000000 | 6002147 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.770%, SOFR + 0.470%, 07/13/23 (a) | 8000000 | 8003171 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/14/23 (a) | 10000000 | 10004962 |
|  National Bank of Canada<br>4.700%, SOFR + 0.400%, 01/04/23 (a) | 3400000 | 3400154 |
|  National Securities Clearing Corp.<br>3.937%, 01/10/23 (b) | 15000000 | 14980195 |
|  Natixis S.A. (New York)<br>4.970%, SOFR + 0.670%, 05/04/23 (a) | 7000000 | 7010697 |
|  Old Line Funding LLC<br>4.830%, SOFR + 0.530%, 02/15/23 (a) | 5000000 | 5001141 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.830%, SOFR + 0.530%, 02/16/23 (a) | 7000000 | 7002610 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.860%, SOFR + 0.560%, 03/01/23 (a) | 7000000 | 7002133 |
|  OMERS Finance Trust<br>3.408%, 01/05/23 (b) | 20000000 | 19985577 |
| **Commercial Paper—(Continued)** |  |  |
|  Province of Ontario Canada<br>3.955%, 01/12/23 (b) | 15000000 | 14976773 |
|  Province of Quebec Canada<br>4.288%, 02/03/23 (b) | 15000000 | 14935979 |
|  PSP Capital, Inc.<br>4.015%, 08/17/23 (b) | 6000000 | 5811783 |
|  Ridgefield Funding Co LLC<br>4.850%, SOFR + 0.550%, 02/02/23 (144A) (a) | 8000000 | 8001404 |
|  Skandinaviska Enskilda Banken AB<br>4.880%, SOFR + 0.580%, 03/01/23 (a) | 4250000 | 4252676 |
|  Starbird Funding Corp.<br>3.682%, 02/23/23 (b) | 5000000 | 4965701 |
|  Swedbank AB<br>4.890%, SOFR + 0.590%, 03/02/23 (a) | 4000000 | 4002602 |
|  Toronto-Dominion Bank (The)<br>1.323%, 02/17/23 (b) | 7000000 | 6958669 |
|  Westpac Banking Corp.<br>4.780%, SOFR + 0.480%, 03/24/23 (a) | 5000000 | 5002609 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.820%, SOFR + 0.520%, 07/07/23 (a) | 10000000 | 10008718 |
|  |  | 573096409 |
| **Repurchase Agreements—10.7%** |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.300%, due on 01/03/23 with a maturity value of $64,030,578; collateralized by U.S. Government Agency Obligations with rates ranging from 1.500% - 6.500%, with maturity dates ranging from 03/20/37 - 12/20/52, and an aggregate market value of $65,280,000. | 64000000 | 64000000 |
|  JPMorgan Securities LLC <br>Repurchase Agreement dated 12/30/22 at 4.270%, due on 01/03/23 with a maturity value of $40,018,978; collateralized by U.S. Treasury Bonds with rates ranging from 0.000% - 3.125%, with maturity dates ranging from 4/18/2023 - 11/15/2046, and an aggregate market value of $40,800,001. | 40000000 | 40000000 |
|  |  | 104000000 |
| **Time Deposit—0.5%** |  |  |
|  Royal Bank Of Canada (Toronto)<br>4.320%, 01/03/23 | 5000000 | 5000000 |
|  Total Short-Term Investments <br>(Cost $1,003,782,774) |  | 1003615777 |
|  Total Investments—103.4% <br>(Cost $1,003,782,774) |  | 1003615777 |
|  Other assets and liabilities (net)—(3.4)% |  | (33148847) |
| **Net Assets—100.0%** |  | $970466930 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Schedule of Investments as of December 31, 2022** 

---

| | |
|:---|:---|
|  | asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above. |
| (b) | The rate shown represents current yield to maturity. |
| (144A) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $33,509,726, which is 3.5% of net assets. |

---

**Glossary of Abbreviations** 

<u> Index Abbreviations</u> <br> (SOFR)— Secured Overnight Financing Rate

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Short-Term Investments\* | $— | $1003615777 | $— | $1003615777 |
|  Total Investments | $— | $1003615777 | $— | $1003615777 |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) | $899615777 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement at value which equals cost | 104000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 948238 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 745725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 1714408 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1007028027 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 35893237 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 278665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 97488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 139410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 36561097 |
|  **Net Assets** | $970466930 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $957072336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 13394594 |
|  **Net Assets** | $970466930 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $469933987 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 421279170 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 79253773 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 4640679 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 4174894 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 783933 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $101.26 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 100.91 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 101.10 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments, excluding repurchase agreements, was $899,782,774.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest (a) | $18555072 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 18555072 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 3602208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 52038 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 111317 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 1005046 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 120194 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 41904 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 58258 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 7976 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 12743 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 5066339 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (250000) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 4816339 |
|  **Net Investment Income** | 13738733 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain on investments | 1410 |
| Net change in unrealized depreciation on investments | (114591) |
|  Net realized and unrealized gain (loss) | (113181) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $13625552 |

---

(a) Net of foreign withholding taxes of $16,648.

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,**<br>**2022** | **Year Ended<br>December 31,**<br>**2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $13738733 | $(3149520) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 1410 | 96131 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (114591) | (122541) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | 13625552 | (3175930) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 0 | (1938618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | 0 | (296015) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | 0 | (153523) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | 0 | (2388156) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (97548844) | 146121719 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (83923292) | 140557633 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1054390222 | 913832589 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $970466930 | $1054390222 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1343555 | $134616181 | 3184296 | $319265486 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 0 | 0 | 19398 | 1938618 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2381726) | (239273664) | (1285235) | (128727815) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (1038171) | $(104657483) | 1918459 | $192476289 |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1731329 | $172978838 | 1845656 | $184588304 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 0 | 0 | 2961 | 296015 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1624592) | (162260675) | (2232667) | (223352197) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 106737 | $10718163 | (384050) | $(38467878) |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 179641 | $17969425 | 251126 | $25149483 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 0 | 0 | 1535 | 153523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (215777) | (21578949) | (331547) | (33189698) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (36136) | $(3609524) | (78886) | $(7886692) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(97548844) |  | $146121719 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $99.82 | $100.35 | $101.88 | $101.58 | $100.82 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 1.41 | (0.20) | 0.40 | 2.12 | 1.81 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | 0.03 | 0.01 | 0.04 | 0.02 | 0.00 (b) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | 1.44 | (0.19) | 0.44 | 2.14 | 1.81 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | (0.34) | (1.97) | (1.84) | (1.04) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | 0.00 | (0.34) | (1.97) | (1.84) | (1.05) |
|  **Net Asset Value, End of Period** | $101.26 | $99.82 | $100.35 | $101.88 | $101.58 |
|  **Total Return (%)** (c) | 1.44 | (0.19) | 0.43 | 2.13 | 1.81 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.38 | 0.38 | 0.39 | 0.39 | 0.39 |
|  Net ratio of expenses to average net assets (%) (d) | 0.36 | 0.36 | 0.36 | 0.37 | 0.36 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.41 | (0.20) | 0.40 | 2.08 | 1.79 |
|  Portfolio turnover rate (%) | 0 (e) | 0 (e) | 0 (e) | 0 (e) | 0 (e) |
|  Net assets, end of period (in millions) | $469.9 | $566.9 | $377.4 | $320.7 | $307.9 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $99.72 | $100.24 | $101.77 | $101.46 | $100.68 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 1.23 | (0.44) | 0.16 | 1.87 | 1.55 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (0.04) | (0.01) | 0.04 | 0.02 | 0.00 (b) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | 1.19 | (0.45) | 0.20 | 1.89 | 1.55 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | (0.07) | (1.73) | (1.58) | (0.76) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | 0.00 | (0.07) | (1.73) | (1.58) | (0.77) |
|  **Net Asset Value, End of Period** | $100.91 | $99.72 | $100.24 | $101.77 | $101.46 |
|  **Total Return (%)** (c) | 1.18 | (0.45) | 0.19 | 1.88 | 1.55 |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.63 | 0.63 | 0.64 | 0.64 | 0.64 |
|  Net ratio of expenses to average net assets (%) (d) | 0.61 | 0.61 | 0.61 | 0.62 | 0.61 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.23 | (0.44) | 0.16 | 1.84 | 1.53 |
|  Portfolio turnover rate (%) | 0 (e) | 0 (e) | 0 (e) | 0 (e) | 0 (e) |
|  Net assets, end of period (in millions) | $421.3 | $405.7 | $446.3 | $391.7 | $412.5 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $99.81 | $100.33 | $101.85 | $101.53 | $100.74 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 1.28 | (0.34) | 0.31 | 1.97 | 1.64 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | 0.01 | 0.00 | (0.02) | 0.02 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | 1.29 | (0.34) | 0.29 | 1.99 | 1.66 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | (0.18) | (1.81) | (1.67) | (0.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | 0.00 | (0.18) | (1.81) | (1.67) | (0.87) |
|  **Net Asset Value, End of Period** | $101.10 | $99.81 | $100.33 | $101.85 | $101.53 |
|  **Total Return (%)** (c) | 1.28 | (0.34) | 0.29 | 1.98 | 1.66 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.53 | 0.53 | 0.54 | 0.54 | 0.54 |
|  Net ratio of expenses to average net assets (%) (d) | 0.51 | 0.51 | 0.51 | 0.52 | 0.51 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.28 | (0.34) | 0.30 | 1.94 | 1.62 |
|  Portfolio turnover rate (%) | 0 (e) | 0 (e) | 0 (e) | 0 (e) | 0 (e) |
|  Net assets, end of period (in millions) | $79.3 | $81.8 | $90.2 | $96.7 | $98.5 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Net realized and unrealized gain (loss) on investments was less than $0.01.

(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(d) Includes the effects of management fee waivers (see Note 4 of the Notes to Financial Statements).

(e) There were no long term transactions during the years ended December 31, 2022 , 2021, 2020, 2019 and 2018 .

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodology to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

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

At December 31, 2022, the Portfolio had investments in repurchase agreements with a gross value of $104,000,000, which is included as Repurchase agreements at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**4. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average daily net assets** |
| $3602208 | 0.350% | Of the first $1 billion |
|  | 0.300% | Of amount in excess of $1 billion |

---

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" as follows:

---

| | | |
|:---|:---|:---|
| **% per annum reduction** | **Average daily net assets** | **Average daily net assets** |
| 0.025% | Of the first $| 1 billion |

---

For the period April 30, 2021 to April 29, 2022, an identical expense agreement was in place. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**5. Contractual Obligations** 

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

**6. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1003782776 |
|  Gross unrealized appreciation | 241401 |
|  Gross unrealized (depreciation) | (408400) |
|  Net unrealized appreciation (depreciation) | $(166999) |

---

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $— | $2388156 | $— | $— | $— | $2388156 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $13713890 | $— | $(166999) | $– $| 13546891 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

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

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the BlackRock Ultra-Short Term Bond Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the BlackRock Ultra-Short Term Bond Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

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

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Bank of America / Merrill Lynch 3-Month Treasury Bill Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**BlackRock Ultra-Short Term Bond Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A and B shares of the Brighthouse Asset Allocation 20 Portfolio returned -12.54% and -12.69%, respectively. The Portfolio's benchmark, the Dow Jones Conservative Portfolio Index¹, returned -13.33%.

**MARKET ENVIRONMENT / CONDITIONS** 

There was no disguising the woeful performance in 2022. Investors braced against stark price declines in equity and bond markets for most of the year before a fourth quarter rally finally offered some relief. Early in the period, markets treaded cautiously as the Russia-Ukraine conflict and mounting inflationary pressures spurred economic uncertainty and volatility. U.S. Federal Reserve (the "Fed") concern over elevated price levels prompted the Fed to raise the Fed Funds rate in March for the first time in more than three years.

Market conditions continued to worsen in the second quarter. Consumer Price Index ("CPI") data pointed to persistently high prices and emboldened the Fed to implement progressive rate increases in May and June in an effort to curb the inflationary threat. Under a monetary tightening environment, the yield on the 10-year U.S. Treasury rose by 1.50% in the first half of year and upended fixed income markets. Equities were no safe haven for investors and slid further as recessionary fears emerged in the period. Economic growth retreated as the real growth domestic product ("GDP") rate contracted during the first and second quarters by 1.4% and 0.6%, respectively on an annualized basis.

A tumultuous market carried on into the third quarter. Despite a deceleration in the rate of price increases for headline CPI, the Fed pressed forward with 0.75% rate hikes in July and September. Concern of a prolonged policy tightening cycle and a slowdown in economic growth appeared to support the prospect the worst may not be over and extended bond and equity market losses through the first nine months of the year.

Overall, markets rebounded to close out the final quarter of 2022. Declines in year-over-year CPI levels signaled a potential easing of inflation and bolstered investor expectations the Fed may begin to scale back on future rate hikes. While equities and bonds saw positive results during the quarter, the damage for the year had already been solidified.

In 2022, the S&P 500 Index returned -18.11%. International equities and emerging market equities, as measured by the MSCI EAFE Index and MSCI Emerging Markets Index, returned -14.45% and -20.09%, respectively. Within U.S. fixed income, core bonds, as measured by the Bloomberg U.S. Aggregate Bond Index, returned -13.01% for the year ended December 31, 2022.

**PORTFOLIO REVIEW / PERIOD-END POSITIONING** 

The Brighthouse Asset Allocation 20 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 20% to equities and 80% to fixed income.

Over the twelve-month period, the Portfolio outperformed the Dow Jones Conservative Portfolio Index. Performance strength within the underlying fixed income, large cap equity, and small cap equity portfolios offset weakness within the underlying mid cap equity and non-U.S. equity portfolios.

The underlying fixed income portfolios added to relative performance. In a rising interest rate environment over the period, the Brighthouse/Eaton Vance Floating Rate Portfolio was the top performing portfolio on an absolute basis. The largest relative contributor versus its benchmark was the Brighthouse/Templeton International Bond Portfolio, which outperformed by 17.7% for the year. The portfolio's underweight duration positioning in the euro area, the United Kingdom, and Japan benefited results along with currency management in the euro and Japanese yen. The JPMorgan Core Bond Portfolio outperformed 0.4% relative to its benchmark. Results were aided by a short duration posture, positioning within the agency mortgage-backed securities sector, and an overweight to the asset-backed securities sector. The PIMCO Inflation Protected Portfolio outpaced its benchmark by 0.2%. Contributors to performance included an overweight to both U.S. breakeven inflation rates (the difference between nominal and real bond yields) and Japanese inflation linked bonds, and a short position to U.K. breakeven inflation. Conversely, the Western Asset Management Strategic Bond Opportunities Portfolio underperformed by 3.6% against its benchmark. The portfolio's tactical positioning in high yield bonds and bank loans, along with duration and yield curve management detracted from relative performance.

Performance from the underlying domestic equity portfolios was mixed for the period. Large cap and small cap equities contributed to performance while mid cap equities underperformed. Within large cap, the Invesco Comstock Portfolio was a primary contributor and outperformed its benchmark by 8.4%. Key performance drivers were an overweight to Energy and an underweight to the Communication Services sectors, and positive selection within Health Care. The MFS Value Portfolio bested its benchmark by 1.6%. Security selection in the Financials, Information Technology ("IT") and Health Care sectors were leading contributors. An underweight to Communication Services and Real Estate bolstered relative results. The T. Rowe Price Growth Portfolio, on the other hand, underperformed its benchmark by 11.3%. Leading relative detractors were weak security selection in the Consumer Discretionary, IT, and Communication Services sectors. An overweight to Communication Services and Consumer Discretionary, and an underweight to Consumer Staples, further detracted from results. In mid cap, the Brighthouse/Artisan Mid Cap Value Portfolio underperformed by 0.6% versus its benchmark. Results were negatively impacted by an overweight to Communication Services and an underweight to Energy. On a positive note, the T. Rowe Price Mid Cap Growth Portfolio outpaced its benchmark by

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

4.4%. Positive security selection in the Health Care and IT sectors and an allocation to cash lifted results for the year. Within small cap equities, the Brighthouse Small Cap Value Portfolio outperformed its benchmark by 1.6%. Results benefited from positive selection in Industrials and IT and from an underweight to Health Care and Communication Services. The T. Rowe Price Small Cap Growth Portfolio outperformed its benchmark by 4.1%. Positive security selection drove results with Health Care, Industrials, IT, and Consumer Discretionary among the leading contributors.

The non-U.S. equity portfolios detracted from performance over the period. The Baillie Gifford International Stock Portfolio underperformed its benchmark by 12.6%. At the sector level, weak security selection in Industrials, Consumer Discretionary, and Health Care were leading detractors. The Brighthouse/Artisan International Portfolio underperformed by 3.1% relative to its benchmark. Results were pressured primarily from weak security selection in the Materials and Financials sectors. Regionally, selection in emerging markets was the largest detractor. The Invesco Global Equity Portfolio lagged its benchmark by 13.3%. Returns were negatively impacted by a combination of weak security selection in Health Care, Communication Services, Industrials, and IT sectors, along with an overweight to Communication Services and IT, and a lack of exposure to Energy. Within emerging market equities, the Brighthouse/abrdn Emerging Markets Equity Portfolio underperformed its benchmark by 5.5%. Negative security selection in the Energy and Consumer Discretionary sectors were the largest relative detractors over the period. At the country level, security selection in China and exposure to Russia were notable detractors.

**Investment Committee** 

*Brighthouse Investment Advisers, LLC* 

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

<sup>1</sup> The Dow Jones Conservative Portfolio Index is a member of the Dow Jones Relative Risk Index Series and is designed to measure a total portfolio of stocks, bonds, and cash, allocated to represent an investor's desired risk profile. The Dow Jones Conservative Portfolio Index level is set to 20% of the Dow Jones Global Stock CMAC Index's downside risk over the past 36 months.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE DOW JONES CONSERVATIVE PORTFOLIO INDEX**![LOGO](g400082g05f97.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse Asset Allocation 20 Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -12.54 | 1.78 | 2.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -12.69 | 1.53 | 2.71 |
| &nbsp;&nbsp;&nbsp;**Dow Jones Conservative Portfolio Index** | -13.33 | 0.09 | 1.37 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Western Asset Management U.S. Government Portfolio (Class A)** | **13.1** |
| **BlackRock Bond Income Portfolio (Class A)** | **12.3** |
| **PIMCO Total Return Portfolio (Class A)** | **12.0** |
| **TCW Core Fixed Income Portfolio (Class A)** | **9.5** |
| **PIMCO Inflation Protected Bond Portfolio (Class A)** | **9.1** |
| **JPMorgan Core Bond Portfolio (Class A)** | **7.8** |
| **Brighthouse/Franklin Low Duration Total Return Portfolio (Class A)** | **5.0** |
| **Western Asset Management Strategic Bond Opportunities Portfolio (Class A)** | **5.0** |
| **MFS Value Portfolio (Class A)** | **2.3** |
| **Brighthouse/Eaton Vance Floating Rate Portfolio (Class A)** | **2.0** |

---

**Asset Allocation** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Investment Grade Fixed Income** | **68.7** |
| **U.S. Large Cap Equities** | **10.7** |
| **High Yield Fixed Income** | **7.5** |
| **International Developed Market Equities** | **3.7** |
| **International Fixed Income** | **3.5** |
| **U.S. Small Cap Equities** | **3.2** |
| **Global Equities** | **1.5** |
| **U.S. Mid Cap Equities** | **0.5** |
| **Real Estate Equities** | **0.5** |
| **Emerging Market Equities** | **0.3** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse Asset Allocation 20 Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) (b) | Actual | 0.63% | $1000.00 | $989.40 | $3.16 |
|  | Hypothetical\* | 0.63% | $1000.00 | $1022.03 | $3.21 |
|  Class B (a) (b) | Actual | 0.88% | $1000.00 | $989.40 | $4.41 |
|  | Hypothetical\* | 0.88% | $1000.00 | $1020.77 | $4.48 |

---

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

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

(a) The annualized expense ratio shown reflects an expense limitation agreement between Brighthouse Investment Advisers, LLC
and the Portfolio as described in Note 5 of the Notes to Financial Statements.

(b) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it
invests.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mutual Funds—100.1% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Affiliated Investment Companies—100.1%** | | |
|  AB International Bond Portfolio (Class A) (a) | 1043978 | $8038634 |
|  Baillie Gifford International Stock Portfolio (Class A) (b) | 552875 | 4942699 |
|  BlackRock Bond Income Portfolio (Class A) (b) | 544285 | 48974793 |
|  BlackRock Capital Appreciation Portfolio (Class A) (b) | 118086 | 2915546 |
|  BlackRock High Yield Portfolio (Class A) (a) | 291556 | 2002992 |
|  Brighthouse Small Cap Value Portfolio (Class A) (a) | 290404 | 3949496 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) (a) | 119460 | 1001075 |
|  Brighthouse/Artisan International Portfolio (Class A) (a) | 329083 | 3007815 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (b) | 4635 | 983691 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (a) | 850634 | 8055508 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) (a) | 2334469 | 20123127 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) (a) (c) | 799669 | 6053494 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (b) | 233639 | 7030208 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) (a) | 338211 | 3960447 |
|  CBRE Global Real Estate Portfolio (Class A) (a) | 208156 | 1998299 |
|  Harris Oakmark International Portfolio (Class A) (a) | 357049 | 4009661 |
|  Invesco Comstock Portfolio (Class A) (a) | 566685 | 7984596 |
|  Invesco Global Equity Portfolio (Class A) (a) | 52185 | 983156 |
|  Jennison Growth Portfolio (Class A) (b) | 311100 | 2908781 |
|  JPMorgan Core Bond Portfolio (Class A) (a) | 3512522 | 31015567 |
|  JPMorgan Small Cap Value Portfolio (Class A) (a) | 177729 | 1963910 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) (b) | 104335 | 990143 |
|  MFS Research International Portfolio (Class A) (a) | 271000 | 3008098 |
|  MFS Value Portfolio (Class A) (b) | 604976 | 9020191 |
|  Neuberger Berman Genesis Portfolio (Class A) (b) | 111752 | 1956771 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) (a) | 3856315 | 36172230 |
| **Affiliated Investment Companies—(Continued)** |  |  |
|  PIMCO Total Return Portfolio (Class A) (a) | 4986532 | 48070166 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) (b) | 206202 | 2907452 |
| T. Rowe Price Large Cap Value Portfolio (Class A) (a) | 208461 | 5997413 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) (a) | 118746 | 987964 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) (b) | 235753 | 3953583 |
|  TCW Core Fixed Income Portfolio (Class A) (a) | 4366913 | 37904804 |
|  VanEck Global Natural Resources Portfolio (Class A) (b) | 379663 | 4825517 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (b) | 1864009 | 20000819 |
|  Western Asset Management U.S. Government Portfolio (Class A) (b) | 5072640 | 52197465 |
|  Total Mutual Funds <br>(Cost $458,353,336) |  | 399896111 |
|  Total Investments—100.1% <br>(Cost $458,353,336) |  | 399896111 |
|  Other assets and liabilities (net)—(0.1)% |  | (312882) |
| **Net Assets—100.0%** |  | $399583229 |

---

(a) A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated Underlying Portfolios.)

(b) A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated Underlying Portfolios.)

(c) Non-income producing security.

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated Investment Companies | $399896111 | $— | $— | $399896111 |
|  Total Investments | $399896111 | $— | $— | $399896111 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (a) | $399896111 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments sold | 150608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 7622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from investment adviser | 8979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 400063320 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments purchased | 354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 157877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 34495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 81347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 53467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 480091 |
|  **Net Assets** | $399583229 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $446134311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (46551082) |
|  **Net Assets** | $399583229 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $22607897 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 376975332 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 2412283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 40588118 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9.29 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of affiliated investments was $458,353,336.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | $13873558 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 13873558 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 455732 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 30250 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 26982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 1079052 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 32944 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 7651 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 1687265 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less expenses reimbursed by the Adviser | (151581) |
|  **Net expenses** | 1535684 |
|  **Net Investment Income** | 12337874 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | (5119527) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital gain distributions from affiliated investments | 14106660 |
|  Net realized gain (loss) | 8987133 |
|  Net change in unrealized depreciation on affiliated investments | (87544388) |
|  Net realized and unrealized gain (loss) | (78557255) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(66219381) |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $12337874 | $9422215 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 8987133 | 20077069 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (87544388) | (8234686) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (66219381) | 21264598 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (1631574) | (1364100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (27018620) | (23135316) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (28650194) | (24499416) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (45486317) | (56350167) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (140355892) | (59584985) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 539939121 | 599524106 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $399583229 | $539939121 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 200276 | $2033937 | 277484 | $3203087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 172836 | 1631574 | 121038 | 1364100 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (476811) | (4786365) | (591426) | (6800179) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (103699) | $(1120854) | (192904) | $(2232992) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2815223 | $28467864 | 4672200 | $53481938 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 2883524 | 27018620 | 2067499 | 23135316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (10047452) | (99851947) | (11441701) | (130734429) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (4348705) | $(44365463) | (4702002) | $(54117175) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(45486317) |  | $(56350167) |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.48 | $11.55 | $11.11 | $10.35 | $11.01 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.30 | 0.22 | 0.35 | 0.33 | 0.24 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.74) | 0.24 | 0.68 | 0.91 | (0.50) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.44) | 0.46 | 1.03 | 1.24 | (0.26) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.35) | (0.38) | (0.34) | (0.27) | (0.26) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.32) | (0.15) | (0.25) | (0.21) | (0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.67) | (0.53) | (0.59) | (0.48) | (0.40) |
|  **Net Asset Value, End of Period** | $9.37 | $11.48 | $11.55 | $11.11 | $10.35 |
|  **Total Return (%)** (b) | (12.54) | 4.01 | 9.70 | 12.14 | (2.41) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) (c) | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
|  Ratio of net investment income (loss) to average net assets (%) (e) | 2.95 | 1.90 | 3.17 | 3.05 | 2.26 |
|  Portfolio turnover rate (%) | 9 | 8 | 14 | 13 | 11 |
|  Net assets, end of period (in millions) | $22.6 | $28.9 | $31.3 | $34 | $33.6 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.37 | $11.45 | $11.01 | $10.27 | $10.92 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.27 | 0.19 | 0.32 | 0.30 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.71) | 0.23 | 0.69 | 0.89 | (0.49) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.44) | 0.42 | 1.01 | 1.19 | (0.28) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.32) | (0.35) | (0.32) | (0.24) | (0.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.32) | (0.15) | (0.25) | (0.21) | (0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.64) | (0.50) | (0.57) | (0.45) | (0.37) |
|  **Net Asset Value, End of Period** | $9.29 | $11.37 | $11.45 | $11.01 | $10.27 |
|  **Total Return (%)** (b) | (12.69) | 3.69 | 9.52 | 11.74 | (2.61) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) (c) | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
|  Ratio of net investment income (loss) to average net assets (%) (e) | 2.69 | 1.62 | 2.96 | 2.82 | 2.00 |
|  Portfolio turnover rate (%) | 9 | 8 | 14 | 13 | 11 |
|  Net assets, end of period (in millions) | $377 | $511.1 | $568.2 | $525.9 | $507.7 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.

(d) Includes the effects of expenses reimbursed by the Adviser (see Note 5 of the Notes to Financial Statements).

(e) Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 20 Portfolio (the "Asset Allocation Portfolio"), which is diversified. The Asset Allocation Portfolio operates under a "fund of funds" structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an "Underlying Portfolio," and, collectively, the "Underlying Portfolios"). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Asset Allocation Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Asset Allocation Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

**Investment Transactions and Related Investment Income -** The Asset Allocation Portfolio's security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

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

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

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**3. Certain Risks** 

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

exposure to each individual counterparty based on the adviser's assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Asset Allocation Portfolio's prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $43227070 | $0 | $90985428 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $455732 | 0.100% | Of the first $500 million |
|  | 0.075% | Of the next $500 million |
|  | 0.050% | On amounts in excess of $1 billion |

---

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

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

**Expense Limitation Agreement -** Pursuant to an expense agreement relating to each class of the Asset Allocation Portfolio, Brighthouse Investment Advisers has contractually agreed, from April 29, 2022 to April 30, 2023, to waive a portion of its advisory fees or pay a portion of the other operating expenses (not including acquired fund fees and expenses, brokerage costs, interest, taxes, or extraordinary expenses) to the extent total operating expenses exceed stated annual expense limits (based on the Asset Allocation Portfolio's then-current fiscal year). For the Asset Allocation Portfolio, this subsidy, and identical subsidies in effect in earlier periods, are subject to the obligation of each class of the Asset Allocation Portfolio to repay Brighthouse Investment Advisers in future years, if any, when a class' expenses fall below the stated expense limit pertaining to that class that was in effect at the time of the subsidy in question. Such deferred expenses may be charged to a class in a subsequent year to the extent that the charge does not cause the total expenses in such subsequent year to exceed the class' stated expense limit that was in effect at the time of the subsidy in question; provided, however, that no class of the Asset Allocation Portfolio is obligated to repay any expense paid by Brighthouse Investment Advisers more than five years after the end of the fiscal year in which such expense was incurred. The expense limits (annual rates as a percentage of each class of the Asset Allocation Portfolio's net average daily net assets) in effect from April 29, 2022 to April 30, 2023 are 0.10% and 0.35% for Class A and B, respectively.

As of December 31, 2022, the amount of expenses deferred in 2018 subject to repayment until December 31, 2023 was $153,825. The amount of expenses deferred in 2019 subject to repayment until December 31, 2024 was $187,177. The amount of expenses deferred in 2020 subject to repayment until December 31, 2025 was $180,341. The amount of expenses deferred in 2021 subject to repayment until December 31, 2026 was $172,017. The amount of expenses deferred in 2022 subject to repayment until December 31, 2027 was $151,581.

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**6. Transactions in Securities of Affiliated Issuers** 

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios' net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2022 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Ending Value<br>as of<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $10792204 | $1192435 | $(1190720) | $(260651) | $(2494634) | $8038634 |
|  Baillie Gifford International Stock Portfolio (Class A) | 6713033 | 1898144 | (1107046) | (269725) | (2291707) | 4942699 |
|  BlackRock Bond Income Portfolio (Class A) | 66190852 | 1936808 | (8356926) | (1512426) | (9283515) | 48974793 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 4016477 | 2040636 | (638359) | (69687) | (2433521) | 2915546 |
|  BlackRock High Yield Portfolio (Class A) | 2711826 | 127342 | (452312) | (46568) | (337296) | 2002992 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 5413912 | 1210029 | (1257730) | 378241 | (1794956) | 3949496 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 1324824 | 398581 | (199438) | (8459) | (514433) | 1001075 |
|  Brighthouse/Artisan International Portfolio (Class A) | 4070282 | 1186130 | (847343) | (72352) | (1328902) | 3007815 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 1356671 | 276501 | (326266) | 51087 | (374302) | 983691 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) | 10819592 | 391251 | (2680832) | (198258) | (276245) | 8055508 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) | 27041745 | 756340 | (5813241) | (747094) | (1114623) | 20123127 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) | 8122290 | 57668 | (1796453) | (597630) | 267619 | 6053494 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 9497506 | 1857339 | (2284224) | 137679 | (2178092) | 7030208 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 5405063 | 1506705 | (958222) | 34515 | (2027614) | 3960447 |
|  CBRE Global Real Estate Portfolio (Class A) | 2721929 | 681225 | (457188) | 8231 | (955898) | 1998299 |
|  Harris Oakmark International Portfolio (Class A) | 5354981 | 1208452 | (1439073) | 393424 | (1508123) | 4009661 |
|  Invesco Comstock Portfolio (Class A) | 10835354 | 2089477 | (3650732) | 782210 | (2071713) | 7984596 |
|  Invesco Global Equity Portfolio (Class A) | 1337144 | 465890 | (212389) | (769) | (606720) | 983156 |
|  Jennison Growth Portfolio (Class A) | 3926512 | 2083365 | (691642) | (14373) | (2395081) | 2908781 |
|  JPMorgan Core Bond Portfolio (Class A) | 41816117 | 1066793 | (5832903) | (565390) | (5469050) | 31015567 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 2683807 | 1006562 | (642173) | 102960 | (1187246) | 1963910 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 1329690 | 466251 | (245380) | (32976) | (527442) | 990143 |
|  MFS Research International Portfolio (Class A) | 4061729 | 632545 | (681038) | (1413) | (1003725) | 3008098 |

---

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Ending Value<br>as of<br>December 31, 2022** |
|  MFS Value Portfolio (Class A) | $12212588 | $2231355 | $(3068056) | $185263 | $(2540959) | $9020191 |
|  Neuberger Berman Genesis Portfolio (Class A) | 2706411 | 662573 | (509268) | (16371) | (886574) | 1956771 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) | 48933564 | 2816408 | (7705387) | (783104) | (7089251) | 36172230 |
|  PIMCO Total Return Portfolio (Class A) | 64851659 | 2025639 | (8057917) | (1908332) | (8840883) | 48070166 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 3953990 | 1963427 | (582990) | (4373) | (2422602) | 2907452 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 8128976 | 1390012 | (2240640) | 261416 | (1542351) | 5997413 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 1351533 | 367558 | (236566) | (29926) | (464635) | 987964 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 5377867 | 1612752 | (1002318) | (96856) | (1937862) | 3953583 |
|  TCW Core Fixed Income Portfolio (Class A) | 51306709 | 860001 | (6592368) | (608936) | (7060602) | 37904804 |
|  VanEck Global Natural Resources Portfolio (Class A) | 6660549 | 1690851 | (4187686) | 2488989 | (1827186) | 4825517 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) | 27076336 | 1546638 | (2857572) | (499203) | (5265380) | 20000819 |
|  Western Asset Management U.S. Government Portfolio (Class A) | 70214662 | 1523387 | (12183030) | (1598670) | (5758884) | 52197465 |
|  | $540318384 | $43227070 | $(90985428) | $(5119527) | $(87544388) | $399896111 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Capital Gain<br>Distributions from<br>Affiliated Investments** | **Income earned<br>from affiliates<br>during the period** | **Number of<br>shares held at<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $85555 | $1022640 | 1043978 |
|  Baillie Gifford International Stock Portfolio (Class A) | 512221 | 65848 | 552875 |
|  BlackRock Bond Income Portfolio (Class A) | 67060 | 1637423 | 544285 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 933279 |  | 118086 |
|  BlackRock High Yield Portfolio (Class A) |  | 119222 | 291556 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 760984 | 39904 | 290404 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 163822 | 11679 | 119460 |
|  Brighthouse/Artisan International Portfolio (Class A) | 590609 | 34177 | 329083 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 163110 | 10797 | 4635 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) |  | 335035 | 850634 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) |  | 681372 | 2334469 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) |  |  | 799669 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 1451269 | 117922 | 233639 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 986079 | 33739 | 338211 |
|  CBRE Global Real Estate Portfolio (Class A) | 213465 | 98112 | 208156 |
|  Harris Oakmark International Portfolio (Class A) | 236953 | 107320 | 357049 |
|  Invesco Comstock Portfolio (Class A) | 1255584 | 188903 | 566685 |
|  Invesco Global Equity Portfolio (Class A) | 165780 |  | 52185 |
|  Jennison Growth Portfolio (Class A) | 813042 |  | 311100 |
|  JPMorgan Core Bond Portfolio (Class A) |  | 974567 | 3512522 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 745521 | 26244 | 177729 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 256442 |  | 104335 |
|  MFS Research International Portfolio (Class A) | 231834 | 70997 | 271000 |
|  MFS Value Portfolio (Class A) | 1469495 | 177090 | 604976 |
|  Neuberger Berman Genesis Portfolio (Class A) | 399507 |  | 111752 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) |  | 2646762 | 3856315 |
|  PIMCO Total Return Portfolio (Class A) |  | 1748434 | 4986532 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 719307 |  | 206202 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 836119 | 125781 | 208461 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 195979 |  | 118746 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 853644 | 10086 | 235753 |
|  TCW Core Fixed Income Portfolio (Class A) |  | 678557 | 4366913 |
|  VanEck Global Natural Resources Portfolio (Class A) |  | 145740 | 379663 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) |  | 1389979 | 1864009 |
|  Western Asset Management U.S. Government Portfolio (Class A) |  | 1375228 | 5072640 |
|  | $14106660 | $13873558 |  |

---

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $468264592 |
|  Gross unrealized appreciation | 4271789 |
|  Gross unrealized (depreciation) | (72640270) |
|  Net unrealized appreciation (depreciation) | $(68368481) |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $14563737 | $17379934 | $14086457 | $7119482 | $28650194 | $24499416 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $13573097 | $8396853 | $(68368481) | $– $| (46398531) |

---

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Asset Allocation Portfolio had no accumulated capital losses.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse Asset Allocation 20 Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 20 Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 20 Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (the "<u>Advisory Agreements</u>" or "<u>Agreements</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and reports that the Adviser had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the "<u>Asset Allocation Portfolios</u>") and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the "<u>American Funds of Funds</u>"). The Board considered the Adviser's services as investment manager to the Portfolios, including with respect to investment programs and personnel, succession management of key personnel, oversight of transition management (as applicable), actions taken with respect to regulatory developments, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic reviews and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser employs at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the "Underlying Portfolios"). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the management of the Asset Allocation Portfolios and the American Funds of Funds, including asset allocations and performance metrics.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected, and (ii) the selection of the peer groups.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each of the Portfolios, which included comparisons of the Portfolio's contractual management fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>") and a narrower group of peer funds ("<u>Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board also considered that the Adviser had entered into an expense limitation and management fee waiver agreement with Brighthouse Asset Allocation 20 Portfolio pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting the Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser's analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data,

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 20 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of distribution and shareholder services activities.

The Board considered information from the Adviser pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated.

\* \* \* \* \*

*Brighthouse Asset Allocation 20 Portfolio.* The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed the Brighthouse AA 20 Narrow Index for the one-, three-, and five-year periods ended October 31, 2022. The Board also took into account that the Portfolio outperformed its benchmark, the Dow Jones Conservative Portfolio Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of the expense cap in effect for the Portfolio.

The Board considered that the Portfolio's actual management fees and total expenses (inclusive of underlying fund expenses and exclusive of 12b-l fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A and B shares of the Brighthouse Asset Allocation 40 Portfolio returned -13.63% and -13.84%, respectively. The Portfolio's benchmark, the Dow Jones Moderately Conservative Portfolio Index¹, returned -14.42%.

**MARKET ENVIRONMENT / CONDITIONS** 

There was no disguising the woeful performance in 2022. Investors braced against stark price declines in equity and bond markets for most of the year before a fourth quarter rally finally offered some relief. Early in the period, markets treaded cautiously as the Russia-Ukraine conflict and mounting inflationary pressures spurred economic uncertainty and volatility. U.S. Federal Reserve (the "Fed") concern over elevated price levels prompted the Fed to raise the Fed Funds rate in March for the first time in more than three years.

Market conditions continued to worsen in the second quarter. Consumer Price Index ("CPI") data pointed to persistently high prices and emboldened the Fed to implement progressive rate increases in May and June in an effort to curb the inflationary threat. Under a monetary tightening environment, the yield on the 10-year U.S. Treasury rose by 1.50% in the first half of year and upended fixed income markets. Equities were no safe haven for investors and slid further as recessionary fears emerged in the period. Economic growth retreated as the real growth domestic product ("GDP") rate contracted during the first and second quarters by 1.4% and 0.6%, respectively on an annualized basis.

A tumultuous market carried on into the third quarter. Despite a deceleration in the rate of price increases for headline CPI, the Fed pressed forward with 0.75% rate hikes in July and September. Concern of a prolonged policy tightening cycle and a slowdown in economic growth appeared to support the prospect the worst may not be over and extended bond and equity market losses through the first nine months of the year.

Overall, markets rebounded to close out the final quarter of 2022. Declines in year-over-year CPI levels signaled a potential easing of inflation and bolstered investor expectations the Fed may begin to scale back on future rate hikes. While equities and bonds saw positive results during the quarter, the damage for the year had already been solidified.

In 2022, the S&P 500 Index returned -18.11%. International equities and emerging market equities, as measured by the MSCI EAFE Index and MSCI Emerging Markets Index, returned -14.45% and -20.09%, respectively. Within U.S. fixed income, core bonds, as measured by the Bloomberg U.S. Aggregate Bond Index, returned -13.01% for the year ended December 31, 2022.

**PORTFOLIO REVIEW / PERIOD-END POSITIONING** 

The Brighthouse Asset Allocation 40 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 40% to equities and 60% to fixed income.

Over the twelve-month period, the Portfolio outperformed the Dow Jones Moderately Conservative Portfolio Index. Performance strength within the underlying fixed income and domestic equity portfolios offset weakness within the underlying non-U.S. equity portfolios.

The underlying fixed income portfolios added to relative performance. In a rising interest rate environment over the period, the Brighthouse/Eaton Vance Floating Rate Portfolio was the top performing portfolio on an absolute basis. The largest relative contributor versus its benchmark was the Brighthouse/Templeton International Bond Portfolio, which outperformed by 17.7% for the year. The portfolio's underweight duration positioning in the euro area, the United Kingdom, and Japan benefited results along with currency management in the euro and Japanese yen. The PIMCO Inflation Protected Portfolio outpaced its benchmark by 0.2%. Contributors to performance included an overweight to both U.S. breakeven inflation rates (the difference between nominal and real bond yields) and Japanese inflation linked bonds, and a short position to U.K. breakeven inflation. Conversely, the AB International Bond Portfolio underperformed by 2.5% against its benchmark. Overall, the portfolio's sector allocation and country and yield curve positioning detracted from relative performance.

Performance from the underlying domestic equity portfolios was positive for the period. Large cap, mid cap, and small cap equities contributed to the outperformance. Within large cap, the Invesco Comstock Portfolio was a primary contributor and outperformed its benchmark by 8.4%. Key performance drivers were an overweight to Energy and an underweight to the Communication Services sectors, and positive selection within Health Care. The MFS Value Portfolio bested its benchmark by 1.6%. Security selection in the Financials, Information Technology ("IT") and Health Care sectors were leading contributors. An underweight to Communication Services and Real Estate bolstered relative results. The T. Rowe Price Growth Portfolio, on the other hand, underperformed its benchmark by 11.3%. Leading relative detractors were weak security selection in the Consumer Discretionary, IT, and Communication Services sectors. An overweight to Communication Services and Consumer Discretionary, and an underweight to Consumer Staples, further detracted from results. In mid cap, the Allspring Mid Cap Value Portfolio outperformed by 7.3% over its benchmark. Results benefited from positive security selection within the Financials and IT sectors, along with an underweight to the Real Estate and Communication Services sectors. The T. Rowe Price Mid Cap Growth Portfolio outpaced its benchmark by 4.4%. Positive security selection in the Health Care and IT sectors and an allocation to cash lifted results for the year. Within small cap equities, the Brighthouse Small Cap Value Portfolio outperformed its benchmark by 1.6%. Results benefited from positive selection in Industrials and IT and from an underweight to

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

Health Care and Communication Services. The T. Rowe Price Small Cap Growth Portfolio outperformed its benchmark by 4.1%. Positive security selection drove results with Health Care, Industrials, IT, and Consumer Discretionary among the leading contributors.

The non-U.S. equity portfolios detracted from performance over the period. The Baillie Gifford International Stock Portfolio underperformed its benchmark by 12.6%. At the sector level, weak security selection in Industrials, Consumer Discretionary, and Health Care were leading detractors. The Brighthouse/Artisan International Portfolio underperformed by 3.1% relative to its benchmark. Results were pressured primarily from weak security selection in the Materials and Financials sectors. Regionally, selection in emerging markets was the largest detractor. The Invesco Global Equity Portfolio lagged its benchmark by 13.3%. Returns were negatively impacted by a combination of weak security selection in Health Care, Communication Services, Industrials, and IT sectors, along with an overweight to Communication Services and IT, and a lack of exposure to Energy. Within emerging market equities, the Brighthouse/abrdn Emerging Markets Equity Portfolio underperformed its benchmark by 5.5%. Negative security selection in the Energy and Consumer Discretionary sectors were the largest relative detractors over the period. At the country level, security selection in China and exposure to Russia were notable detractors.

**Investment Committee** 

*Brighthouse Investment Advisers, LLC* 

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

<sup>1</sup> The Dow Jones Moderately Conservative Portfolio Index is a member of the Dow Jones Relative Risk Index Series and is designed to measure a total portfolio of stocks, bonds, and cash, allocated to represent an investor's desired risk profile. The Dow Jones Moderately Conservative Portfolio Index level is set to 40% of the Dow Jones Global Stock CMAC Index's downside risk over the past 36 months.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY CONSERVATIVE PORTFOLIO INDEX**![LOGO](g400082g45r05.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse Asset Allocation 40 Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -13.63 | 2.82 | 4.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -13.84 | 2.58 | 4.38 |
| &nbsp;&nbsp;&nbsp;**Dow Jones Moderately Conservative Portfolio Index** | -14.42 | 1.76 | 3.66 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **BlackRock Bond Income Portfolio (Class A)** | **9.6** |
| **PIMCO Total Return Portfolio (Class A)** | **9.1** |
| **Western Asset Management U.S. Government Portfolio (Class A)** | **8.1** |
| **TCW Core Fixed Income Portfolio (Class A)** | **7.3** |
| **PIMCO Inflation Protected Bond Portfolio (Class A)** | **6.0** |
| **Western Asset Management Strategic Bond Opportunities Portfolio (Class A)** | **4.0** |
| **MFS Value Portfolio (Class A)** | **3.8** |
| **JPMorgan Core Bond Portfolio (Class A)** | **3.8** |
| **T. Rowe Price Large Cap Value Portfolio (Class A)** | **3.5** |
| **AB International Bond Portfolio (Class A)** | **3.5** |

---

**Asset Allocation** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Investment Grade Fixed Income** | **46.8** |
| **U.S. Large Cap Equities** | **21.2** |
| **International Developed Market Equities** | **8.8** |
| **High Yield Fixed Income** | **6.5** |
| **International Fixed Income** | **6.1** |
| **U.S. Small Cap Equities** | **4.4** |
| **Global Equities** | **2.9** |
| **Emerging Market Equities** | **1.5** |
| **U.S. Mid Cap Equities** | **1.0** |
| **Real Estate Equities** | **0.8** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse Asset Allocation 40 Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.62% | $1000.00 | $1003.20 | $3.13 |
|  | Hypothetical\* | 0.62% | $1000.00 | $1022.08 | $3.16 |
|  Class B (a) | Actual | 0.87% | $1000.00 | $1002.10 | $4.39 |
|  | Hypothetical\* | 0.87% | $1000.00 | $1020.82 | $4.43 |

---

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

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

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it
invests.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mutual Funds—100.0% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Affiliated Investment Companies—100.0%** | | |
|  AB International Bond Portfolio (Class A) (a) | 17348489 | $133583365 |
|  Allspring Mid Cap Value Portfolio (Class A) (a) | 791236 | 9526484 |
|  Baillie Gifford International Stock Portfolio (Class A) (b) | 11598209 | 103687984 |
|  BlackRock Bond Income Portfolio (Class A) (b) | 4021753 | 361877370 |
|  BlackRock Capital Appreciation Portfolio (Class A) (b) | 2495314 | 61609306 |
|  BlackRock High Yield Portfolio (Class A) (a) | 2761622 | 18972342 |
|  Brighthouse Small Cap Value Portfolio (Class A) (a) | 3450057 | 46920769 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) (a) | 3394102 | 28442571 |
|  Brighthouse/Artisan International Portfolio (Class A) (a) | 7298441 | 66707754 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (b) | 43844 | 9305872 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (a) | 8015327 | 75905148 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) (a) | 13240232 | 114130802 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) (a)(c) | 12617204 | 95512235 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (b) | 4123144 | 124065411 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) (a) | 7254263 | 84947422 |
|  CBRE Global Real Estate Portfolio (Class A) (a) | 2967751 | 28490412 |
|  Harris Oakmark International Portfolio (Class A) (a) | 9303309 | 104476162 |
|  Invesco Comstock Portfolio (Class A) (a) | 8789965 | 123850607 |
|  Invesco Global Equity Portfolio (Class A) (a) | 1980614 | 37314772 |
|  Invesco Small Cap Growth Portfolio (Class A) (a) | 2531107 | 18477079 |
|  Jennison Growth Portfolio (Class A) (b) | 4567539 | 42706490 |
|  JPMorgan Core Bond Portfolio (Class A) (a) | 16181654 | 142884002 |
|  JPMorgan Small Cap Value Portfolio (Class A) (a) | 2517952 | 27823369 |
|  Loomis Sayles Growth Portfolio (Class A) (a) | 3418607 | 36886768 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) (b) | 993345 | 9426843 |
|  MFS Research International Portfolio (Class A) (a) | 5137946 | 57031204 |
|  MFS Value Portfolio (Class A) (b) | 9600761 | 143147343 |
| **Affiliated Investment Companies—(Continued)** |  |  |
|  Neuberger Berman Genesis Portfolio (Class A) (b) | 1056201 | 18494073 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) (a) | 24302169 | 227954341 |
|  PIMCO Total Return Portfolio (Class A) (a) | 35611607 | 343295896 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) (a) | 3188986 | 28541428 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) (b) | 3622375 | 51075483 |
| T. Rowe Price Large Cap Value Portfolio (Class A) (a) | 4643969 | 133606976 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) (a) | 2261615 | 18816635 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) (b) | 2802986 | 47006077 |
|  TCW Core Fixed Income Portfolio (Class A) (a) | 31765683 | 275726126 |
|  VanEck Global Natural Resources Portfolio (Class A) (b) | 5750883 | 73093724 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (b) | 14200892 | 152375575 |
|  Western Asset Management U.S. Government Portfolio (Class A) (b) | 29656810 | 305168572 |
|  Total Mutual Funds <br>(Cost $4,341,990,477) |  | 3782864792 |
|  Total Investments—100.0% <br>(Cost $4,341,990,477) |  | 3782864792 |
|  Other assets and liabilities (net)—0.0% |  | (1280668) |
| **Net Assets—100.0%** |  | $3781584124 |

---

(a) A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated Underlying Portfolios.)

(b) A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated Underlying Portfolios.)

(c) Non-income producing security.

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated Investment Companies | $3782864792 | $— | $— | $3782864792 |
|  Total Investments | $3782864792 | $— | $— | $3782864792 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (a) | $3782864792 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments sold | 973222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 113751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 3783951765 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 1086973 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 195352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 804458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 227265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 53593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 2367641 |
|  **Net Assets** | $3781584124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $4073074519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (291490395) |
|  **Net Assets** | $3781584124 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $60308589 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 3721275535 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 6315715 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 394740054 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.55 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9.43 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of affiliated investments was $4,341,990,477.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | $114973083 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 114973083 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2481500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 30250 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 26982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 10366922 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 32944 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 10151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 13003403 |
|  **Net Investment Income** | 101969680 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | (34440093) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital gain distributions from affiliated investments | 248316589 |
|  Net realized gain (loss) | 213876496 |
|  Net change in unrealized depreciation on affiliated investments | (988037005) |
|  Net realized and unrealized gain (loss) | (774160509) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(672190829) |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $101969680 | $70266814 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 213876496 | 272879818 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (988037005) | 33059401 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (672190829) | 376206033 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (5460511) | (4914518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (332950156) | (316700687) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (338410667) | (321615205) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (225146277) | (353942397) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (1235747773) | (299351569) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 5017331897 | 5316683466 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $3781584124 | $5017331897 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 246521 | $2578682 | 367120 | $4437525 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 572981 | 5460511 | 416485 | 4914518 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (854544) | (8693683) | (750596) | (9058008) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (35042) | $(654490) | 33009 | $294035 |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 3574700 | $36098792 | 6423015 | $77468571 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 35345027 | 332950156 | 27138019 | 316700687 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (58011666) | (593540735) | (62492757) | (748405690) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (19091939) | $(224491787) | (28931723) | $(354236432) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(225146277) |  | $(353942397) |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Financial Highlights** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $12.09 | $11.98 | $11.66 | $10.85 | $11.95 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.28 | 0.19 | 0.32 | 0.31 | 0.24 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.93) | 0.71 | 0.88 | 1.37 | (0.72) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.65) | 0.90 | 1.20 | 1.68 | (0.48) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.31) | (0.36) | (0.34) | (0.29) | (0.27) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.58) | (0.43) | (0.54) | (0.58) | (0.35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.89) | (0.79) | (0.88) | (0.87) | (0.62) |
|  **Net Asset Value, End of Period** | $9.55 | $12.09 | $11.98 | $11.66 | $10.85 |
|  **Total Return (%)** (b) | (13.63) | 7.68 | 11.31 | 15.94 | (4.25) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Ratio of expenses to average net assets (%) (c) | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
|  Ratio of net investment income (loss) to average net assets (%) (d) | 2.67 | 1.60 | 2.88 | 2.69 | 2.04 |
|  Portfolio turnover rate (%) | 10 | 7 | 9 | 11 | 8 |
|  Net assets, end of period (in millions) | $60.3 | $76.8 | $75.7 | $74.5 | $71.9 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.94 | $11.84 | $11.53 | $10.74 | $11.82 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.25 | 0.16 | 0.29 | 0.27 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.90) | 0.70 | 0.87 | 1.35 | (0.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.65) | 0.86 | 1.16 | 1.62 | (0.50) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.28) | (0.33) | (0.31) | (0.25) | (0.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.58) | (0.43) | (0.54) | (0.58) | (0.35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.86) | (0.76) | (0.85) | (0.83) | (0.58) |
|  **Net Asset Value, End of Period** | $9.43 | $11.94 | $11.84 | $11.53 | $10.74 |
|  **Total Return (%)** (b) | (13.84) | 7.42 | 11.04 | 15.60 | (4.40) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Ratio of expenses to average net assets (%) (c) | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
|  Ratio of net investment income (loss) to average net assets (%) (d) | 2.42 | 1.34 | 2.63 | 2.44 | 1.79 |
|  Portfolio turnover rate (%) | 10 | 7 | 9 | 11 | 8 |
|  Net assets, end of period (in millions) | $3721.3 | $4940.6 | $5241.0 | $5311.0 | $5268.2 |

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(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.

(d) Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

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**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 40 Portfolio (the "Asset Allocation Portfolio"), which is diversified. The Asset Allocation Portfolio operates under a "fund of funds" structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an "Underlying Portfolio," and, collectively, the "Underlying Portfolios"). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Asset Allocation Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Asset Allocation Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

**Investment Transactions and Related Investment Income -** The Asset Allocation Portfolio's security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

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

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

**BHFTII-9** 

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**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**3. Certain Risks** 

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net

**BHFTII-10** 

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**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

exposure to each individual counterparty based on the adviser's assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Asset Allocation Portfolio's prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio, for the year ended December 31, 2022 were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $444062447 | $0 | $657664100 |

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**5. Investment Management Fees and Other Transactions with Affiliates** 

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

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| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $2481500 | 0.100% | Of the first $500 million |
|  | 0.075% | Of the next $500 million |
|  | 0.050% | On amounts in excess of $1 billion |

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In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-11** 

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**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**6. Transactions in Securities of Affiliated Issuers** 

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios' net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2022 were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Ending Value<br>as of<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $175587321 | $17913013 | $(15334427) | $(3066376) | $(41516166) | $133583365 |
|  Allspring Mid Cap Value Portfolio (Class A) | 12749470 | 1974017 | (2648140) | 533105 | (3081968) | 9526484 |
|  Baillie Gifford International Stock Portfolio (Class A) | 130636747 | 28710597 | (7063910) | 785926 | (49381376) | 103687984 |
|  BlackRock Bond Income Portfolio (Class A) | 477762867 | 12298208 | (50623592) | (6037469) | (71522644) | 361877370 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 87781016 | 27573525 | (309139) | (14029) | (53422067) | 61609306 |
|  BlackRock High Yield Portfolio (Class A) | 25321516 | 1108115 | (3870768) | (509025) | (3077496) | 18972342 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 63464971 | 9401247 | (9105706) | 821683 | (17661426) | 46920769 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 34838455 | 8286659 | (899088) | 102140 | (13885595) | 28442571 |
|  Brighthouse/Artisan International Portfolio (Class A) | 88788048 | 14917239 | (6946130) | (884310) | (29167093) | 66707754 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 12707003 | 1623013 | (1962578) | 416791 | (3478357) | 9305872 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) | 100783384 | 3130211 | (23542827) | (1549954) | (2915666) | 75905148 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) | 151031423 | 3833226 | (30310703) | (3983541) | (6439603) | 114130802 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) | 126358311 | 5245 | (25780211) | (11643886) | 6572776 | 95512235 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 165360604 | 27084321 | (32985970) | 4827438 | (40220982) | 124065411 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 113815526 | 20845055 | (8126522) | 363258 | (41949895) | 84947422 |
|  CBRE Global Real Estate Portfolio (Class A) | 38315291 | 5579341 | (2132963) | 262703 | (13533960) | 28490412 |
|  Harris Oakmark International Portfolio (Class A) | 134317722 | 14061205 | (15539702) | (83409) | (28279654) | 104476162 |
|  Invesco Comstock Portfolio (Class A) | 165033541 | 21911873 | (43127125) | 3474837 | (23442519) | 123850607 |
|  Invesco Global Equity Portfolio (Class A) | 50074595 | 10182406 | (1053993) | 62383 | (21950619) | 37314772 |
|  Invesco Small Cap Growth Portfolio (Class A) | 23651447 | 10425905 | (542025) | (405051) | (14653197) | 18477079 |
|  Jennison Growth Portfolio (Class A) | 60643232 | 19500031 | (606698) | (98010) | (36732065) | 42706490 |
|  JPMorgan Core Bond Portfolio (Class A) | 188332213 | 4397740 | (22761234) | (1953445) | (25131272) | 142884002 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 37702643 | 10826169 | (5307619) | 71157 | (15468981) | 27823369 |
|  Loomis Sayles Growth Portfolio (Class A) | 50205110 | 5266646 | (977387) | (311393) | (17296208) | 36886768 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 12334998 | 3187476 | (956836) | (258850) | (4879945) | 9426843 |
|  MFS Research International Portfolio (Class A) | 76197523 | 5668280 | (6104306) | 997450 | (19727743) | 57031204 |
|  MFS Value Portfolio (Class A) | 190643188 | 25536562 | (36146929) | (492943) | (36392535) | 143147343 |
|  Neuberger Berman Genesis Portfolio (Class A) | 25406524 | 4023770 | (2516103) | 269975 | (8690093) | 18494073 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) | 304385964 | 16411650 | (43974877) | (2769656) | (46098740) | 227954341 |
|  PIMCO Total Return Portfolio (Class A) | 452954150 | 12197726 | (47153277) | (8376106) | (66326597) | 343295896 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) | 35628852 | 1318565 | (530780) | (10030) | (7865179) | 28541428 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 73247978 | 22696639 | (642723) | (183747) | (44042664) | 51075483 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 177659963 | 20854842 | (36667617) | 1043398 | (29283610) | 133606976 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 25343510 | 3979357 | (1349724) | (163095) | (8993413) | 18816635 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 62710520 | 12269975 | (4429556) | (1200091) | (22344771) | 47006077 |
|  TCW Core Fixed Income Portfolio (Class A) | 364435216 | 4835065 | (39324491) | (3279325) | (50940339) | 275726126 |
|  VanEck Global Natural Resources Portfolio (Class A) | 98893388 | 12052233 | (46584230) | 9411288 | (678955) | 73093724 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) | 201868951 | 10259342 | (17024842) | (2022206) | (40705670) | 152375575 |
|  Western Asset Management U.S. Government Portfolio (Class A) | 401970362 | 7915958 | (62699352) | (8587678) | (33430718) | 305168572 |
|  | $5018943543 | $444062447 | $(657664100) | $(34440093) | $(988037005) | $3782864792 |

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**BHFTII-12** 

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**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Capital Gain<br>Distributions from<br>Affiliated Investments** | **Income earned<br>from affiliates<br>during the period** | **Number of<br>shares held at<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $1382069 | $16519785 | 17348489 |
|  Allspring Mid Cap Value Portfolio (Class A) | 1901476 | 70425 | 791236 |
|  Baillie Gifford International Stock Portfolio (Class A) | 9948871 | 1278991 | 11598209 |
|  BlackRock Bond Income Portfolio (Class A) | 481774 | 11763672 | 4021753 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 19171724 |  | 2495314 |
|  BlackRock High Yield Portfolio (Class A) |  | 1108045 | 2761622 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 8875949 | 465428 | 3450057 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 4493539 | 320337 | 3394102 |
|  Brighthouse/Artisan International Portfolio (Class A) | 12487588 | 722632 | 7298441 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 1517415 | 100448 | 43844 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) |  | 3126542 | 8015327 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) |  | 3816366 | 13240232 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) |  |  | 12617204 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 25043412 | 2034894 | 4123144 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 20087731 | 687303 | 7254263 |
|  CBRE Global Real Estate Portfolio (Class A) | 2907161 | 1336180 | 2967751 |
|  Harris Oakmark International Portfolio (Class A) | 6036625 | 2734077 | 9303309 |
|  Invesco Comstock Portfolio (Class A) | 18948149 | 2850750 | 8789965 |
|  Invesco Global Equity Portfolio (Class A) | 5899260 |  | 1980614 |
|  Invesco Small Cap Growth Portfolio (Class A) | 6218680 |  | 2531107 |
|  Jennison Growth Portfolio (Class A) | 11885614 |  | 4567539 |
|  JPMorgan Core Bond Portfolio (Class A) |  | 4374352 | 16181654 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 10434589 | 367317 | 2517952 |
|  Loomis Sayles Growth Portfolio (Class A) | 3637297 |  | 3418607 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 2288777 |  | 993345 |
|  MFS Research International Portfolio (Class A) | 4311860 | 1320475 | 5137946 |
|  MFS Value Portfolio (Class A) | 22776481 | 2744811 | 9600761 |
|  Neuberger Berman Genesis Portfolio (Class A) | 3669110 |  | 1056201 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) |  | 16389704 | 24302169 |
|  PIMCO Total Return Portfolio (Class A) |  | 12137945 | 35611607 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) |  | 776741 | 3188986 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 12676325 |  | 3622375 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 18104052 | 2723464 | 4643969 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 3530928 |  | 2261615 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 9600133 | 113425 | 2802986 |
|  TCW Core Fixed Income Portfolio (Class A) |  | 4792907 | 31765683 |
|  VanEck Global Natural Resources Portfolio (Class A) |  | 2176606 | 5750883 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) |  | 10249935 | 14200892 |
|  Western Asset Management U.S. Government Portfolio (Class A) |  | 7869526 | 29656810 |
|  | $248316589 | $114973083 |  |

---

**7. Contractual Obligations** 

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

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $4394193747 |
|  Gross unrealized appreciation | 56201690 |
|  Gross unrealized (depreciation) | (667530646) |
|  Net unrealized appreciation (depreciation) | $(611328956) |

---

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $109123662 | $139148388 | $229287005 | $182466817 | $338410667 | $321615205 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $127998116 | $192067710 | $(611328956) | $– $| (291263130) |

---

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Asset Allocation Portfolio had no accumulated capital losses.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse Asset Allocation 40 Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 40 Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 40 Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (the "<u>Advisory Agreements</u>" or "<u>Agreements</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and reports that the Adviser had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the "<u>Asset Allocation Portfolios</u>") and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the "<u>American Funds of Funds</u>"). The Board considered the Adviser's services as investment manager to the Portfolios, including with respect to investment programs and personnel, succession management of key personnel, oversight of transition management (as applicable), actions taken with respect to regulatory developments, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic reviews and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser employs at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the "Underlying Portfolios"). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the management of the Asset Allocation Portfolios and the American Funds of Funds, including asset allocations and performance metrics.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected, and (ii) the selection of the peer groups.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each of the Portfolios, which included comparisons of the Portfolio's contractual management fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>") and a narrower group of peer funds ("<u>Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board also considered that the Adviser had entered into an expense limitation and management fee waiver agreement with Brighthouse Asset Allocation 20 Portfolio pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting the Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser's analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data,

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 40 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of distribution and shareholder services activities.

The Board considered information from the Adviser pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated.

\* \* \* \* \*

*Brighthouse Asset Allocation 40 Portfolio.* The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-year period ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed the Brighthouse AA 40 Narrow Index for the one-, three-, and five-year periods ended October 31, 2022. In addition, the Board noted that the Portfolio outperformed its benchmark, the Dow Jones Moderately Conservative Portfolio Index, for the one-, three-, and five-year periods ended October 31, 2022.

The Board also considered that the Portfolio's actual management fees and total expenses (inclusive of underlying fund expenses and exclusive of 12b-l fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A and B shares of the Brighthouse Asset Allocation 60 Portfolio returned -15.17% and -15.33%, respectively. The Portfolio's benchmark, the Dow Jones Moderate Portfolio Index¹, returned -14.97%.

**MARKET ENVIRONMENT / CONDITIONS** 

There was no disguising the woeful performance in 2022. Investors braced against stark price declines in equity and bond markets for most of the year before a fourth quarter rally finally offered some relief. Early in the period, markets treaded cautiously as the Russia-Ukraine conflict and mounting inflationary pressures spurred economic uncertainty and volatility. U.S. Federal Reserve (the "Fed") concern over elevated price levels prompted the Fed to raise the Fed Funds rate in March for the first time in more than three years.

Market conditions continued to worsen in the second quarter. Consumer Price Index ("CPI") data pointed to persistently high prices and emboldened the Fed to implement progressive rate increases in May and June in an effort to curb the inflationary threat. Under a monetary tightening environment, the yield on the 10-year U.S. Treasury rose by 1.50% in the first half of year and upended fixed income markets. Equities were no safe haven for investors and slid further as recessionary fears emerged in the period. Economic growth retreated as the real growth domestic product ("GDP") rate contracted during the first and second quarters by 1.4% and 0.6%, respectively on an annualized basis.

A tumultuous market carried on into the third quarter. Despite a deceleration in the rate of price increases for headline CPI, the Fed pressed forward with 0.75% rate hikes in July and September. Concern of a prolonged policy tightening cycle and a slowdown in economic growth appeared to support the prospect the worst may not be over and extended bond and equity market losses through the first nine months of the year.

Overall, markets rebounded to close out the final quarter of 2022. Declines in year-over-year CPI levels signaled a potential easing of inflation and bolstered investor expectations the Fed may begin to scale back on future rate hikes. While equities and bonds saw positive results during the quarter, the damage for the year had already been solidified.

In 2022, the S&P 500 Index returned -18.11%. International equities and emerging market equities, as measured by the MSCI EAFE Index and MSCI Emerging Markets Index, returned -14.45% and -20.09%, respectively. Within U.S. fixed income, core bonds, as measured by the Bloomberg U.S. Aggregate Bond Index, returned -13.01% for the year ended December 31, 2022.

**PORTFOLIO REVIEW / PERIOD-END POSITIONING** 

The Brighthouse Asset Allocation 60 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 60% to equities and 40% to fixed income.

Over the twelve-month period, the Portfolio underperformed the Dow Jones Moderate Portfolio Index. Performance weakness within the underlying small cap equity and non-U.S. equity portfolios offset strength within the underlying fixed income, large cap, and mid cap equity portfolios.

The underlying fixed income portfolios added to relative performance. In a rising interest rate environment over the period, the Brighthouse/Eaton Vance Floating Rate Portfolio was the top performing portfolio on an absolute basis. The largest relative contributor versus its benchmark was the Brighthouse/Templeton International Bond Portfolio, which outperformed by 17.7% for the year. The portfolio's underweight duration positioning in the euro area, the United Kingdom, and Japan benefited results along with currency management in the euro and Japanese yen. The BlackRock High Yield Portfolio outpaced its benchmark by 1.0%. An allocation to bank loans and investment grade bonds, an underweight to retailers and media & entertainment industries, and an underweight to BB-rated bonds all contributed to relative results. Conversely, the AB International Bond Portfolio underperformed by 2.5% against its benchmark. Overall, the portfolio's sector allocation and country and yield curve positioning detracted from relative performance.

Performance from the underlying domestic equity portfolios was mixed for the period. Small cap equities underperformed, while large cap and mid cap equities were positive contributors to relative performance. Within large cap, the Invesco Comstock Portfolio was a primary contributor and outperformed its benchmark by 8.4%. Key performance drivers were an overweight to Energy and an underweight to the Communication Services sectors, and positive selection within Health Care. The Brighthouse/Wellington Core Equity Opportunities Portfolio exceeded its benchmark by 14.0%. Strong security selection in the Industrials, Consumer Discretionary, and Information Technology ("IT") sectors and an overweight to Consumer Staples and Industrials, coupled with an underweight to IT and Communication Services drove relative results. The Jennison Growth Portfolio, on the other hand, underperformed its benchmark by 9.7%. Leading relative detractors were weak security selection in the IT and Communication Services sectors and an overweight to Consumer Discretionary. In mid cap, the Allspring Mid Cap Value Portfolio outperformed by 7.3% over its benchmark. Results benefited from positive security selection within the Financials and IT sectors, along with an underweight to the Real Estate and Communication Services sectors. The T. Rowe Price Mid Cap Growth Portfolio outpaced its benchmark by 4.4%. Positive security selection in the Health Care and IT sectors and an allocation to cash lifted results for the year. Within small cap equities, the Invesco Small Cap Growth Portfolio lagged its benchmark by 8.7%. Selection in the Health Care, Industrials, and Materials sectors were primarily responsible for the relative underperformance. The

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

Neuberger Berman Genesis Portfolio lost 4.7% versus its benchmark. Results were pressured by an underweight to the Energy sector and an overweight to the IT sector. The T. Rowe Price Small Cap Growth Portfolio outperformed its benchmark by 4.1%. Positive security selection drove results with Health Care, Industrials, IT, and Consumer Discretionary among the leading contributors.

The non-U.S. equity portfolios detracted from performance over the period. The Baillie Gifford International Stock Portfolio underperformed its benchmark by 12.6%. At the sector level, weak security selection in Industrials, Consumer Discretionary, and Health Care were leading detractors. The Brighthouse/Artisan International Portfolio underperformed by 3.1% relative to its benchmark. Results were pressured primarily from weak security selection in the Materials and Financials sectors. Regionally, selection in emerging markets was the largest detractor. The Harris Oakmark International Portfolio lagged its benchmark by 1.3%. Returns were negatively impacted by a lack of exposure to Energy, an overweight to Consumer Discretionary, and security selection in Financials. Within emerging market equities, the Brighthouse/abrdn Emerging Markets Equity Portfolio underperformed its benchmark by 5.5%. Negative security selection in the Energy and Consumer Discretionary sectors were the largest relative detractors over the period. At the country level, security selection in China and exposure to Russia were notable detractors.

**Investment Committee** 

*Brighthouse Investment Advisers, LLC* 

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

<sup>1</sup> The Dow Jones Moderate Portfolio Index is a member of the Dow Jones Relative Risk Index Series and is designed to measure a total portfolio of stocks, bonds, and cash, allocated to represent an investor's desired risk profile. The Dow Jones Moderate Portfolio Index level is set to 60% of the Dow Jones Global Stock CMAC Index's downside risk over the past 36 months.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE PORTFOLIO INDEX**![LOGO](g400082g66b44.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse Asset Allocation 60 Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -15.17 | 3.94 | 6.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -15.33 | 3.69 | 6.07 |
| &nbsp;&nbsp;&nbsp;**Dow Jones Moderate Portfolio Index** | -14.97 | 3.26 | 5.66 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **BlackRock Bond Income Portfolio (Class A)** | **7.0** |
| **PIMCO Total Return Portfolio (Class A)** | **6.0** |
| **TCW Core Fixed Income Portfolio (Class A)** | **5.2** |
| **MFS Value Portfolio (Class A)** | **5.1** |
| **T. Rowe Price Large Cap Value Portfolio (Class A)** | **4.6** |
| **Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)** | **4.3** |
| **Harris Oakmark International Portfolio (Class A)** | **4.1** |
| **Invesco Comstock Portfolio (Class A)** | **4.1** |
| **Western Asset Management U.S. Government Portfolio (Class A)** | **4.0** |
| **Baillie Gifford International Stock Portfolio (Class A)** | **3.8** |

---

**Asset Allocation** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Large Cap Equities** | **30.6** |
| **Investment Grade Fixed Income** | **29.7** |
| **International Developed Market Equities** | **14.3** |
| **U.S. Small Cap Equities** | **7.0** |
| **International Fixed Income** | **4.8** |
| **High Yield Fixed Income** | **4.6** |
| **Global Equities** | **3.9** |
| **Emerging Market Equities** | **2.5** |
| **Real Estate Equities** | **1.5** |
| **U.S. Mid Cap Equities** | **1.1** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse Asset Allocation 60 Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.65% | $1000.00 | $1014.50 | $3.30 |
|  | Hypothetical\* | 0.65% | $1000.00 | $1021.93 | $3.31 |
|  Class B (a) | Actual | 0.90% | $1000.00 | $1013.50 | $4.57 |
|  | Hypothetical\* | 0.90% | $1000.00 | $1020.67 | $4.58 |

---

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

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

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it
invests.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mutual Funds—100.0% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Affiliated Investment Companies—100.0%** | | |
|  AB International Bond Portfolio (Class A) (a) | 30910726 | $238012589 |
|  Allspring Mid Cap Value Portfolio (Class A) (a) | 1995065 | 24020584 |
|  Baillie Gifford International Stock Portfolio (Class A) (b) | 39865686 | 356399230 |
|  BlackRock Bond Income Portfolio (Class A) (b) | 7348260 | 661196454 |
|  BlackRock Capital Appreciation Portfolio (Class A) (b) | 8750966 | 216061354 |
|  BlackRock High Yield Portfolio (Class A) (a) | 8261009 | 56753133 |
|  Brighthouse Small Cap Value Portfolio (Class A) (a) | 12162102 | 165404593 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) (a) | 17045524 | 142841489 |
|  Brighthouse/Artisan International Portfolio (Class A) (a) | 31489092 | 287810301 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (b) | 110549 | 23464028 |
|  Brighthouse/Dimensional International Small Company Portfolio (Class A) (b) | 10337165 | 97065984 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (a) | 19937704 | 188810057 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) (a) | 21915698 | 188913317 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) (b) (c) | 28915605 | 218891130 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (b) | 13544560 | 407555796 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) (a) | 24230195 | 283735584 |
|  CBRE Global Real Estate Portfolio (Class A) (a) | 14721937 | 141330594 |
|  Harris Oakmark International Portfolio (Class A) (a) | 34171671 | 383747870 |
|  Invesco Comstock Portfolio (Class A) (a) | 27193280 | 383153318 |
|  Invesco Global Equity Portfolio (Class A) (a) | 4936902 | 93011230 |
|  Invesco Small Cap Growth Portfolio (Class A) (a) | 15813431 | 115438043 |
|  Jennison Growth Portfolio (Class A) (b) | 24802109 | 231899722 |
|  JPMorgan Core Bond Portfolio (Class A) (a) | 26663562 | 235439248 |
|  JPMorgan Small Cap Value Portfolio (Class A) (a) | 6312992 | 69758558 |
|  Loomis Sayles Growth Portfolio (Class A) (a) | 23443500 | 252955367 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) (b) | 7481897 | 71003198 |
| **Affiliated Investment Companies—(Continued)** | **Affiliated Investment Companies—(Continued)** | **Affiliated Investment Companies—(Continued)** |
|  MFS Research International Portfolio (Class A) (a) | 19464574 | 216056767 |
|  MFS Value Portfolio (Class A) (b) | 32142819 | 479249425 |
|  Neuberger Berman Genesis Portfolio (Class A) (b) | 3984188 | 69763127 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) (a) | 29979027 | 281203277 |
|  PIMCO Total Return Portfolio (Class A) (a) | 58851722 | 567330604 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) (a) | 10544759 | 94375591 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) (b) | 13431456 | 189383527 |
| T. Rowe Price Large Cap Value Portfolio (Class A) (a) | 14968012 | 430629718 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) (a) | 5687118 | 47316826 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) (b) | 9846688 | 165128960 |
|  TCW Core Fixed Income Portfolio (Class A) (a) | 55949560 | 485642185 |
|  VanEck Global Natural Resources Portfolio (Class A) (b) | 21792712 | 276985369 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (b) | 17614790 | 189006694 |
|  Western Asset Management U.S. Government Portfolio (Class A) (b) | 36729947 | 377951154 |
|  Total Mutual Funds <br>(Cost $10,805,042,601) |  | 9404695995 |
|  Total Investments—100.0% <br>(Cost $10,805,042,601) |  | 9404695995 |
|  Other assets and liabilities (net)—0.0% |  | (2650974) |
| **Net Assets—100.0%** |  | $9402045021 |

---

(a) A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated Underlying Portfolios.)

(b) A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated Underlying Portfolios.)

(c) Non-income producing security.

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated Investment Companies | $9404695995 | $— | $— | $9404695995 |
|  Total Investments | $9404695995 | $— | $— | $9404695995 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (a) | $9404695995 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments sold | 2028237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 153483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 9406877715 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments purchased | 13541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 2168180 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 438134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 1969313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 189908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 53618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 4832694 |
|  **Net Assets** | $9402045021 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $9813942619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (411897598) |
|  **Net Assets** | $9402045021 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $288139157 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9113905864 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 29365947 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 935217032 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.81 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9.75 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of affiliated investments was $10,805,042,601.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | $229309895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 229309895 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 5568056 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 30250 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 26982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 25185073 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 32944 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 14251 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 30912210 |
|  **Net Investment Income** | 198397685 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | (55010914) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital gain distributions from Affiliated Underlying Portfolios | 912777731 |
|  Net realized gain (loss) | 857766817 |
|  Net change in unrealized depreciation on affiliated investments | (2924278898) |
|  Net realized and unrealized gain (loss) | (2066512081) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(1868114396) |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $198397685 | $138891953 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 857766817 | 890329381 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (2924278898) | 293815552 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (1868114396) | 1323036886 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (31316809) | (26862648) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (986071675) | (906675413) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (1017388484) | (933538061) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (180447658) | (564110271) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (3065950538) | (174611446) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 12467995559 | 12642607005 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $9402045021 | $12467995559 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 717156 | $7636905 | 1107950 | $14253267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3221894 | 31316809 | 2143867 | 26862648 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2908461) | (30839009) | (2284779) | (29472592) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1030589 | $8114705 | 967038 | $11643323 |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 6780407 | $72246244 | 14101387 | $182508006 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 101972252 | 986071675 | 72766887 | 906675413 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (116595920) | (1246880282) | (129816643) | (1664937013) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (7843261) | $(188562363) | (42948369) | $(575753594) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(180447658) |  | $(564110271) |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $12.92 | $12.55 | $12.17 | $11.30 | $12.72 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.23 | 0.17 | 0.28 | 0.26 | 0.22 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.20) | 1.20 | 1.22 | 1.88 | (0.92) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.97) | 1.37 | 1.50 | 2.14 | (0.70) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.28) | (0.31) | (0.29) | (0.28) | (0.24) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.86) | (0.69) | (0.83) | (0.99) | (0.48) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.14) | (1.00) | (1.12) | (1.27) | (0.72) |
|  **Net Asset Value, End of Period** | $9.81 | $12.92 | $12.55 | $12.17 | $11.30 |
|  **Total Return (%)** (b) | (15.17) | 11.17 | 14.09 | 19.85 | (5.93) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Ratio of expenses to average net assets (%) (c) | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 |
|  Ratio of net investment income (loss) to average net assets (%) (d) | 2.16 | 1.33 | 2.43 | 2.21 | 1.76 |
|  Portfolio turnover rate (%) | 14 | 9 | 10 | 13 | 10 |
|  Net assets, end of period (in millions) | $288.1 | $366.2 | $343.6 | $327.6 | $294.6 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $12.83 | $12.47 | $12.09 | $11.24 | $12.65 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.20 | 0.14 | 0.25 | 0.23 | 0.19 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.18) | 1.19 | 1.22 | 1.85 | (0.91) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.98) | 1.33 | 1.47 | 2.08 | (0.72) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.24) | (0.28) | (0.26) | (0.24) | (0.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.86) | (0.69) | (0.83) | (0.99) | (0.48) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.10) | (0.97) | (1.09) | (1.23) | (0.69) |
|  **Net Asset Value, End of Period** | $9.75 | $12.83 | $12.47 | $12.09 | $11.24 |
|  **Total Return (%)** (b) | (15.33) | 10.90 | 13.85 | 19.42 | (6.12) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Ratio of expenses to average net assets (%) (c) | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 |
|  Ratio of net investment income (loss) to average net assets (%) (d) | 1.90 | 1.08 | 2.18 | 1.98 | 1.51 |
|  Portfolio turnover rate (%) | 14 | 9 | 10 | 13 | 10 |
|  Net assets, end of period (in millions) | $9113.9 | $12101.8 | $12299.1 | $12158.4 | $11604 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.

(d) Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 60 Portfolio (the "Asset Allocation Portfolio"), which is diversified. The Asset Allocation Portfolio operates under a "fund of funds" structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an "Underlying Portfolio," and, collectively, the "Underlying Portfolios"). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Asset Allocation Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Asset Allocation Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

**Investment Transactions and Related Investment Income -** The Asset Allocation Portfolio's security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

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

**Income Taxes -** It is the Asset Allocation Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Asset Allocation Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Asset Allocation Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

December 31, 2022, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**3. Certain Risks** 

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser's assessment, and (iii) requiring collateral from the counterparty for

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Asset Allocation Portfolio's prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $1416620261 | $0 | $1504019931 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $5568056 | 0.100% | Of the first $500 million |
|  | 0.075% | Of the next $500 million |
|  | 0.050% | On amounts in excess of $1 billion |

---

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees** - The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**6. Transactions in Securities of Affiliated Issuers** 

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios' net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2022 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Ending Value<br>as of<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $372178746 | $31464781 | $(79880604) | $(9371395) | $(76378939) | $238012589 |
|  Allspring Mid Cap Value Portfolio (Class A) | 32110594 | 4984402 | (6573639) | 416087 | (6916860) | 24020584 |
|  Baillie Gifford International Stock Portfolio (Class A) | 437562345 | 96155948 | (13945413) | 925282 | (164298932) | 356399230 |
|  BlackRock Bond Income Portfolio (Class A) | 838131695 | 22049878 | (61203829) | (6868186) | (130913104) | 661196454 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 314102480 | 91008248 | (129541) | (9055) | (188910778) | 216061354 |
|  BlackRock High Yield Portfolio (Class A) | 75376861 | 3313168 | (11179991) | (1609116) | (9147789) | 56753133 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 223277894 | 33145089 | (31135041) | 2642161 | (62525510) | 165404593 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 170600478 | 41119418 | (1209115) | (150229) | (67519063) | 142841489 |
|  Brighthouse/Artisan International Portfolio (Class A) | 380074716 | 57876545 | (22649856) | (356483) | (127134621) | 287810301 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 31925419 | 4054235 | (4785157) | 906260 | (8636729) | 23464028 |
|  Brighthouse/Dimensional International Small Company Portfolio (Class A) | 126275177 | 14036721 | (7475780) | (4056312) | (31713822) | 97065984 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) | 249531102 | 7778694 | (57278387) | (2015824) | (9205528) | 188810057 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) | 247979744 | 6348364 | (48104925) | (6432424) | (10877442) | 188913317 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) | 311884910 | 410 | (80708524) | (47715668) | 35430002 | 218891130 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 544017160 | 88401389 | (108038776) | 16182612 | (133006589) | 407555796 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 381391798 | 69833969 | (27577868) | 448531 | (140360846) | 283735584 |
|  CBRE Global Real Estate Portfolio (Class A) | 193406558 | 25049613 | (9979960) | 2286102 | (69431719) | 141330594 |
|  Harris Oakmark International Portfolio (Class A) | 486342590 | 40509223 | (39390374) | (3416568) | (100297001) | 383747870 |
|  Invesco Comstock Portfolio (Class A) | 510564573 | 67948254 | (132214809) | 9492657 | (72637357) | 383153318 |
|  Invesco Global Equity Portfolio (Class A) | 124982223 | 22840791 | (326523) | (10460) | (54474801) | 93011230 |
|  Invesco Small Cap Growth Portfolio (Class A) | 149926910 | 60380586 | (1093916) | (709316) | (93066221) | 115438043 |
|  Jennison Growth Portfolio (Class A) | 336625864 | 97199755 | (512406) | (151174) | (201262317) | 231899722 |
|  JPMorgan Core Bond Portfolio (Class A) | 247837081 | 39333106 | (13297429) | (1023464) | (37410046) | 235439248 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 94856277 | 27297398 | (13424791) | (2173389) | (36796937) | 69758558 |
|  Loomis Sayles Growth Portfolio (Class A) | 345469160 | 30309525 | (1941386) | (56383) | (120825549) | 252955367 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 93700969 | 21544171 | (5564599) | (2186439) | (36490904) | 71003198 |
|  MFS Research International Portfolio (Class A) | 285223404 | 20990698 | (20342574) | 1052336 | (70867097) | 216056767 |
|  MFS Value Portfolio (Class A) | 637618282 | 85317552 | (119296427) | (6499829) | (117890153) | 479249425 |
|  Neuberger Berman Genesis Portfolio (Class A) | 95752837 | 13614960 | (8011778) | 2755043 | (34347935) | 69763127 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) | 377438423 | 20341079 | (55789525) | (3845481) | (56941219) | 281203277 |
|  PIMCO Total Return Portfolio (Class A) | 745552944 | 20069569 | (74955634) | (14188304) | (109147971) | 567330604 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) | 117161692 | 3527631 | (304910) | 2835 | (26011657) | 94375591 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 279052439 | 76090326 | (616152) | (195046) | (164948040) | 189383527 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 572943590 | 67057127 | (117331789) | 1429002 | (93468212) | 430629718 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 63460733 | 8957096 | (2302986) | (576883) | (22221134) | 47316826 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 221032660 | 38689563 | (11996473) | (2351793) | (80244997) | 165128960 |
|  TCW Core Fixed Income Portfolio (Class A) | 638600653 | 8454286 | (66054981) | (5720708) | (89637065) | 485642185 |
|  VanEck Global Natural Resources Portfolio (Class A) | 374275382 | 27014783 | (153764371) | 40219307 | (10759732) | 276985369 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) | 250012126 | 12683027 | (20724522) | (2478762) | (50485175) | 189006694 |
|  Western Asset Management U.S. Government Portfolio (Class A) | 493126988 | 9828883 | (72905170) | (9600438) | (42499109) | 377951154 |
|  | $12471385477 | $1416620261 | $(1504019931) | $(55010914) | $(2924278898) | $9404695995 |

---

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Capital Gain<br>Distributions from<br>Affiliated Investments** | **Income earned<br>from affiliates<br>during the period** | **Number of<br>shares held at<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $2429081 | $29034662 | 30910726 |
|  Allspring Mid Cap Value Portfolio (Class A) | 4806387 | 178014 | 1995065 |
|  Baillie Gifford International Stock Portfolio (Class A) | 33360115 | 4288656 | 39865686 |
|  BlackRock Bond Income Portfolio (Class A) | 867147 | 21173471 | 7348260 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 67350830 |  | 8750966 |
|  BlackRock High Yield Portfolio (Class A) |  | 3313004 | 8261009 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 31491807 | 1651335 | 12162102 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 22105905 | 1575895 | 17045524 |
|  Brighthouse/Artisan International Portfolio (Class A) | 52694379 | 3049319 | 31489092 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 3802478 | 251711 | 110549 |
|  Brighthouse/Dimensional International Small Company Portfolio (Class A) | 11277715 | 2749985 | 10337165 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) |  | 7773656 | 19937704 |
|  Brighthouse/Franklin Low Duration Total Return Portfolio (Class A) |  | 6342916 | 21915698 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) |  |  | 28915605 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 81758157 | 6643232 | 13544560 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 67521813 | 2310263 | 24230195 |
|  CBRE Global Real Estate Portfolio (Class A) | 14637286 | 6727545 | 14721937 |
|  Harris Oakmark International Portfolio (Class A) | 21686835 | 9822289 | 34171671 |
|  Invesco Comstock Portfolio (Class A) | 59062324 | 8885930 | 27193280 |
|  Invesco Global Equity Portfolio (Class A) | 14503482 |  | 4936902 |
|  Invesco Small Cap Growth Portfolio (Class A) | 38231319 |  | 15813431 |
|  Jennison Growth Portfolio (Class A) | 64298203 |  | 24802109 |
|  JPMorgan Core Bond Portfolio (Class A) |  | 6873822 | 26663562 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 26368571 | 928223 | 6312992 |
|  Loomis Sayles Growth Portfolio (Class A) | 24588009 |  | 23443500 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 17011628 |  | 7481897 |
|  MFS Research International Portfolio (Class A) | 16063063 | 4919195 | 19464574 |
|  MFS Value Portfolio (Class A) | 76141661 | 9175891 | 32142819 |
|  Neuberger Berman Genesis Portfolio (Class A) | 13609849 |  | 3984188 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) |  | 20332826 | 29979027 |
|  PIMCO Total Return Portfolio (Class A) |  | 20061326 | 58851722 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) |  | 2564706 | 10544759 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 46761008 |  | 13431456 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 58288550 | 8768577 | 14968012 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 8708309 |  | 5687118 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 33351820 | 394051 | 9846688 |
|  TCW Core Fixed Income Portfolio (Class A) |  | 8448971 | 55949560 |
|  VanEck Global Natural Resources Portfolio (Class A) |  | 8566826 | 21792712 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) |  | 12681131 | 17614790 |
|  Western Asset Management U.S. Government Portfolio (Class A) |  | 9822467 | 36729947 |
|  | $912777731 | $229309895 |  |

---

**7. Contractual Obligations** 

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

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $10879620886 |
|  Gross unrealized appreciation | 133951977 |
|  Gross unrealized (depreciation) | (1608876868) |
|  Net unrealized appreciation (depreciation) | $(1474924891) |

---

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $221924534 | $269770302 | $795463950 | $663767759 | $1017388484 | $933538061 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $292383560 | $770833641 | $(1474924891) | $– $| (411707690) |

---

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Asset Allocation Portfolio had no accumulated capital losses.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse Asset Allocation 60 Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 60 Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 60 Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (the "<u>Advisory Agreements</u>" or "<u>Agreements</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and reports that the Adviser had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the "<u>Asset Allocation Portfolios</u>") and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the "<u>American Funds of Funds</u>"). The Board considered the Adviser's services as investment manager to the Portfolios, including with respect to investment programs and personnel, succession management of key personnel, oversight of transition management (as applicable), actions taken with respect to regulatory developments, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic reviews and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser employs at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the "Underlying Portfolios"). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the management of the Asset Allocation Portfolios and the American Funds of Funds, including asset allocations and performance metrics.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected, and (ii) the selection of the peer groups.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each of the Portfolios, which included comparisons of the Portfolio's contractual management fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>") and a narrower group of peer funds ("<u>Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board also considered that the Adviser had entered into an expense limitation and management fee waiver agreement with Brighthouse Asset Allocation 20 Portfolio pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting the Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser's analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data,

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 60 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of distribution and shareholder services activities.

The Board considered information from the Adviser pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated.

\* \* \* \* \*

*Brighthouse Asset Allocation 60 Portfolio.* The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed the Brighthouse AA 60 Narrow Index for the one- and three-year periods ended October 31, 2022 and underperformed the same index for the and five-year period ended October 31, 2022. The Board also noted that the Portfolio outperformed its benchmark, the Dow Jones Moderate Portfolio Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions.

The Board also considered that the Portfolio's actual management fees were below the Expense Group median and Expense Universe median. The Board also considered that the Portfolio's total expenses (inclusive of underlying fund expenses and exclusive of 12b-1 fees) were below the Expense Group median and above the Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A and B shares of the Brighthouse Asset Allocation 80 Portfolio returned -17.71% and -17.97%, respectively. The Portfolio's benchmark, the Dow Jones Moderately Aggressive Portfolio Index¹, returned -15.59%.

**MARKET ENVIRONMENT / CONDITIONS** 

There was no disguising the woeful performance in 2022. Investors braced against stark price declines in equity and bond markets for most of the year before a fourth quarter rally finally offered some relief. Early in the period, markets treaded cautiously as the Russia-Ukraine conflict and mounting inflationary pressures spurred economic uncertainty and volatility. U.S. Federal Reserve (the "Fed") concern over elevated price levels prompted the Fed to raise the Fed Funds rate in March for the first time in more than three years.

Market conditions continued to worsen in the second quarter. Consumer Price Index ("CPI") data pointed to persistently high prices and emboldened the Fed to implement progressive rate increases in May and June in an effort to curb the inflationary threat. Under a monetary tightening environment, the yield on the 10-year U.S. Treasury rose by 1.50% in the first half of year and upended fixed income markets. Equities were no safe haven for investors and slid further as recessionary fears emerged in the period. Economic growth retreated as the real growth domestic product ("GDP") rate contracted during the first and second quarters by 1.4% and 0.6%, respectively on an annualized basis.

A tumultuous market carried on into the third quarter. Despite a deceleration in the rate of price increases for headline CPI, the Fed pressed forward with 0.75% rate hikes in July and September. Concern of a prolonged policy tightening cycle and a slowdown in economic growth appeared to support the prospect the worst may not be over and extended bond and equity market losses through the first nine months of the year.

Overall, markets rebounded to close out the final quarter of 2022. Declines in year-over-year CPI levels signaled a potential easing of inflation and bolstered investor expectations the Fed may begin to scale back on future rate hikes. While equities and bonds saw positive results during the quarter, the damage for the year had already been solidified.

In 2022, the S&P 500 Index returned -18.11%. International equities and emerging market equities, as measured by the MSCI EAFE Index and MSCI Emerging Markets Index, returned -14.45% and -20.09%, respectively. Within U.S. fixed income, core bonds, as measured by the Bloomberg U.S. Aggregate Bond Index, returned -13.01% for the year ended December 31, 2022.

**PORTFOLIO REVIEW / PERIOD-END POSITIONING** 

The Brighthouse Asset Allocation 80 Portfolio invests in underlying portfolios of the Brighthouse Funds Trust I and the Brighthouse Funds Trust II to maintain a broad asset allocation of approximately 80% to equities and 20% to fixed income.

Over the twelve-month period, the Portfolio underperformed the Dow Jones Moderately Aggressive Portfolio Index. Performance weakness within the underlying mid cap equity, small cap equity, and non-U.S. equity portfolios offset strength within the underlying fixed income and large cap equity portfolios.

The underlying fixed income portfolios added to relative performance. In a rising interest rate environment over the period, the Brighthouse/Eaton Vance Floating Rate Portfolio was the top performing portfolio on an absolute basis. The largest relative contributor versus its benchmark was the Brighthouse/Templeton International Bond Portfolio, which outperformed by 17.7% for the year. The portfolio's underweight duration positioning in the euro area, the United Kingdom, and Japan benefited results along with currency management in the euro and Japanese yen. The BlackRock High Yield Portfolio outpaced its benchmark by 1.0%. An allocation to bank loans and investment grade bonds, an underweight to retailers and media & entertainment industries, and an underweight to BB-rated bonds all contributed to relative results. Conversely, the Western Asset Management Strategic Bond Opportunities Portfolio underperformed by 3.6% against its benchmark. The portfolio's tactical positioning in high yield bonds and bank loans, along with duration and yield curve management detracted from relative performance.

Performance from the underlying domestic equity portfolios was mixed for the period. Mid cap and small cap equities underperformed, while large cap equities was a positive contributor to relative performance. Within large cap, the Invesco Comstock Portfolio was a primary contributor and outperformed its benchmark by 8.4%. Key performance drivers were an overweight to Energy and an underweight to the Communication Services sectors, and positive selection within Health Care. The T. Rowe Price Large Cap Value Portfolio exceeded its benchmark by 2.6%. An underweight to Communication Services and positive security selection across the Financials, Consumer Staples, Consumer Discretionary, and Information Technology ("IT") sectors benefited relative results. The T. Rowe Price Growth Portfolio, on the other hand, underperformed its benchmark by 11.3%. Leading relative detractors were weak security selection in the Consumer Discretionary, IT, and Communication Services sectors. An overweight to Communication Services and Consumer Discretionary, and an underweight to Consumer Staples, further detracted from results. In mid cap, the Morgan Stanley Discovery Portfolio underperformed its benchmark by 35.7%. The largest relative detractors were a result of weak security selection in the IT and Consumer Discretionary sectors and an overweight to Communication Services. The Frontier Mid Cap Growth Portfolio underperformed by 1.4% versus its benchmark. Negative security selection and an underweight to Energy were primary detractors over the period. Weak security selection in Financials and IT further

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Managed by Brighthouse Investment Advisers, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

pressured results. Within small cap equities, the Invesco Small Cap Growth Portfolio lagged its benchmark by 8.7%. Selection in the Health Care, Industrials, and Materials sectors were primarily responsible for the relative underperformance. The Neuberger Berman Genesis Portfolio lost 4.7% versus its benchmark. Results were pressured by an underweight to the Energy sector and an overweight to the IT sector. The T. Rowe Price Small Cap Growth Portfolio outperformed its benchmark by 4.1%. Positive security selection drove results with Health Care, Industrials, IT, and Consumer Discretionary among the leading contributors.

The non-U.S. equity portfolios detracted from performance over the period. The Baillie Gifford International Stock Portfolio underperformed its benchmark by 12.6%. At the sector level, weak security selection in Industrials, Consumer Discretionary, and Health Care were leading detractors. The Brighthouse/Artisan International Portfolio underperformed by 3.1% relative to its benchmark. Results were pressured primarily from weak security selection in the Materials and Financials sectors. Regionally, selection in emerging markets was the largest detractor. The Harris Oakmark International Portfolio lagged its benchmark by 1.3%. Returns were negatively impacted by a lack of exposure to Energy, an overweight to Consumer Discretionary, and security selection in Financials. Within emerging market equities, the Brighthouse/abrdn Emerging Markets Equity Portfolio underperformed its benchmark by 5.5%. Negative security selection in the Energy and Consumer Discretionary sectors were the largest relative detractors over the period. At the country level, security selection in China and exposure to Russia were notable detractors.

**Investment Committee** 

*Brighthouse Investment Advisers, LLC* 

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

<sup>1</sup> The Dow Jones Moderately Aggressive Portfolio Index is a member of the Dow Jones Relative Risk Index Series and is designed to measure a total portfolio of stocks, bonds, and cash, allocated to represent an investor's desired risk profile. The Dow Jones Moderately Aggressive Portfolio Index level is set to 80% of the Dow Jones Global Stock CMAC Index's downside risk over the past 36 months.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY AGGRESSIVE PORTFOLIO INDEX**![LOGO](g400082g04o90.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse Asset Allocation 80 Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -17.71 | 4.79 | 7.79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -17.97 | 4.52 | 7.53 |
| &nbsp;&nbsp;&nbsp;**Dow Jones Moderately Aggressive Portfolio Index** | -15.59 | 4.58 | 7.40 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **MFS Value Portfolio (Class A)** | **5.9** |
| **Harris Oakmark International Portfolio (Class A)** | **5.2** |
| **Invesco Comstock Portfolio (Class A)** | **5.1** |
| **T. Rowe Price Large Cap Value Portfolio (Class A)** | **5.1** |
| **Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A)** | **4.6** |
| **Baillie Gifford International Stock Portfolio (Class A)** | **4.6** |
| **Loomis Sayles Growth Portfolio (Class A)** | **4.4** |
| **Brighthouse/Artisan International Portfolio (Class A)** | **4.1** |
| **Jennison Growth Portfolio (Class A)** | **4.0** |
| **BlackRock Bond Income Portfolio (Class A)** | **4.0** |

---

**Asset Allocation** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Large Cap Equities** | **39.1** |
| **International Developed Market Equities** | **19.3** |
| **Investment Grade Fixed Income** | **13.0** |
| **U.S. Small Cap Equities** | **10.0** |
| **Global Equities** | **4.5** |
| **Emerging Market Equities** | **3.5** |
| **High Yield Fixed Income** | **3.0** |
| **International Fixed Income** | **2.6** |
| **Real Estate Equities** | **2.5** |
| **U.S. Mid Cap Equities** | **2.5** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse Asset Allocation 80 Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.68% | $1000.00 | $1024.10 | $3.47 |
|  | Hypothetical\* | 0.68% | $1000.00 | $1021.78 | $3.47 |
|  Class B (a) | Actual | 0.93% | $1000.00 | $1022.30 | $4.74 |
|  | Hypothetical\* | 0.93% | $1000.00 | $1020.52 | $4.74 |

---

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

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

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it
invests.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mutual Funds—100.0% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Affiliated Investment Companies—100.0%** | | |
|  AB International Bond Portfolio (Class A) (a) | 7906245 | $60878089 |
|  Allspring Mid Cap Value Portfolio (Class A) (a) | 6875975 | 82786743 |
|  Baillie Gifford International Stock Portfolio (Class A) (b) | 41014308 | 366667917 |
|  BlackRock Bond Income Portfolio (Class A) (b) | 3555258 | 319902101 |
|  BlackRock Capital Appreciation Portfolio (Class A) (b) | 8877653 | 219189246 |
|  BlackRock High Yield Portfolio (Class A) (a) | 5877403 | 40377760 |
|  Brighthouse Small Cap Value Portfolio (Class A) (a) | 14945962 | 203265084 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) (a) | 19399174 | 162565082 |
|  Brighthouse/Artisan International Portfolio (Class A) (a) | 36268170 | 331491076 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) (b) | 95051 | 20174549 |
|  Brighthouse/Dimensional International Small Company Portfolio (Class A) (b) | 17864890 | 167751321 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) (a) | 8479752 | 80303249 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) (a) (c) | 19268372 | 145861576 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) (b) | 12357217 | 371828653 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) (a) | 24214976 | 283557371 |
|  CBRE Global Real Estate Portfolio (Class A) (a) | 20757060 | 199267779 |
|  Frontier Mid Cap Growth Portfolio (Class A) (b) | 1866333 | 39715577 |
|  Harris Oakmark International Portfolio (Class A) (a) | 36787074 | 413118840 |
|  Invesco Comstock Portfolio (Class A) (a) | 29244299 | 412052170 |
|  Invesco Global Equity Portfolio (Class A) (a) | 6285085 | 118411002 |
|  Invesco Small Cap Growth Portfolio (Class A) (a) | 24310832 | 177469077 |
|  Jennison Growth Portfolio (Class A) (b) | 34609064 | 323594745 |
|  JPMorgan Core Bond Portfolio (Class A) (a) | 15805535 | 139562871 |
|  JPMorgan Small Cap Value Portfolio (Class A) (a) | 10855463 | 119952862 |
|  Loomis Sayles Growth Portfolio (Class A) (a) | 32771042 | 353599546 |
| **Affiliated Investment Companies—(Continued)** |  |  |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) (b) | 14981730 | 142176620 |
|  MFS Research International Portfolio (Class A) (a) | 24328391 | 270045144 |
|  MFS Value Portfolio (Class A) (b) | 31821854 | 474463843 |
|  Morgan Stanley Discovery Portfolio (Class A) (a) | 3915624 | 15858278 |
|  Neuberger Berman Genesis Portfolio (Class A) (b) | 1140946 | 19977964 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) (a) | 12734397 | 119448646 |
|  PIMCO Total Return Portfolio (Class A) (a) | 24988880 | 240892804 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) (a) | 13471163 | 120566907 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) (b) | 20378201 | 287332637 |
| T. Rowe Price Large Cap Value Portfolio (Class A) (a) | 14285417 | 410991461 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) (a) | 4884606 | 40639923 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) (b) | 8446310 | 141644615 |
|  TCW Core Fixed Income Portfolio (Class A) (a) | 25389225 | 220378476 |
|  VanEck Global Natural Resources Portfolio (Class A) (b) | 18768373 | 238546020 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (b) | 11218683 | 120376464 |
|  Total Mutual Funds <br>(Cost $9,294,081,489) |  | 8016684088 |
|  Total Investments—100.0% <br>(Cost $9,294,081,489) |  | 8016684088 |
|  Other assets and liabilities (net)—0.0% |  | (2293716) |
| **Net Assets—100.0%** |  | $8014390372 |

---

(a) A Portfolio of Brighthouse Funds Trust I. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)

(b) A Portfolio of Brighthouse Funds Trust II. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)

(c) Non-income producing security.

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated Investment Companies | $8016684088 | $— | $— | $8016684088 |
|  Total Investments | $8016684088 | $— | $— | $8016684088 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (a) | $8016684088 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments sold | 1240437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 126793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 8018051318 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments purchased | 4323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 1362907 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 378730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 1645750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 215624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 53612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 3660946 |
|  **Net Assets** | $8014390372 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $8166637176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (152246804) |
|  **Net Assets** | $8014390372 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $410631813 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 7603758559 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 38713777 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 721547497 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $10.61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 10.54 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of affiliated investments was $9,294,081,489.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | $148505876 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 148505876 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 4807464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 30250 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 26982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 21063053 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 32944 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 13351 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 26028699 |
|  **Net Investment Income** | 122477177 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | (8751443) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital gain distributions from affiliated investments | 1084016767 |
|  Net realized gain (loss) | 1075265324 |
|  Net change in unrealized depreciation on affiliated investments | (3101268321) |
|  Net realized and unrealized gain (loss) | (2026002997) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(1903525820) |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $122477177 | $92422415 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 1075265324 | 915395363 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (3101268321) | 492941716 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (1903525820) | 1500759494 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (50275861) | (43018270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (943317777) | (852332965) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (993593638) | (895351235) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 54355090 | (437290010) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (2842764368) | 168118249 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 10857154740 | 10689036491 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $8014390372 | $10857154740 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 876857 | $10286189 | 833273 | $12115343 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 4811087 | 50275861 | 3048779 | 43018270 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2553348) | (29925719) | (3166472) | (46021854) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3134596 | $30636331 | 715580 | $9111759 |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 4989874 | $57789390 | 17171640 | $252659073 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 90703632 | 943317777 | 60707476 | 852332965 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (83177128) | (977388408) | (106994285) | (1551393807) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 12516378 | $23718759 | (29115169) | $(446401769) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $54355090 |  | $(437290010) |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $14.67 | $13.91 | $13.48 | $12.36 | $14.25 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.19 | 0.16 | 0.25 | 0.24 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.81) | 1.86 | 1.68 | 2.57 | (1.25) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.62) | 2.02 | 1.93 | 2.81 | (1.04) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.26) | (0.28) | (0.27) | (0.28) | (0.22) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (1.18) | (0.98) | (1.23) | (1.41) | (0.63) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.44) | (1.26) | (1.50) | (1.69) | (0.85) |
|  **Net Asset Value, End of Period** | $10.61 | $14.67 | $13.91 | $13.48 | $12.36 |
|  **Total Return (%)** (b) | (17.71) | 14.87 | 17.01 | 24.04 | (7.91) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Ratio of expenses to average net assets (%) (c) | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
|  Ratio of net investment income (loss) to average net assets (%) (d) | 1.62 | 1.08 | 2.01 | 1.82 | 1.50 |
|  Portfolio turnover rate (%) | 14 | 10 | 12 | 13 | 11 |
|  Net assets, end of period (in millions) | $410.6 | $522.1 | $484.8 | $439.2 | $378.2 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $14.58 | $13.82 | $13.41 | $12.30 | $14.18 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.16 | 0.12 | 0.22 | 0.21 | 0.17 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.80) | 1.87 | 1.66 | 2.55 | (1.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.64) | 1.99 | 1.88 | 2.76 | (1.06) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.22) | (0.25) | (0.24) | (0.24) | (0.19) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (1.18) | (0.98) | (1.23) | (1.41) | (0.63) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.40) | (1.23) | (1.47) | (1.65) | (0.82) |
|  **Net Asset Value, End of Period** | $10.54 | $14.58 | $13.82 | $13.41 | $12.30 |
|  **Total Return (%)** (b) | (17.97) | 14.71 | 16.59 | 23.73 | (8.11) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Ratio of expenses to average net assets (%) (c) | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
|  Ratio of net investment income (loss) to average net assets (%) (d) | 1.37 | 0.83 | 1.76 | 1.58 | 1.26 |
|  Portfolio turnover rate (%) | 14 | 10 | 12 | 13 | 11 |
|  Net assets, end of period (in millions) | $7603.8 | $10335 | $10204.2 | $9862.7 | $9018.8 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.

(d) Recognition of net investment income by the Asset Allocation Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Brighthouse Asset Allocation 80 Portfolio (the "Asset Allocation Portfolio"), which is diversified. The Asset Allocation Portfolio operates under a "fund of funds" structure, investing substantially all of its assets in other Portfolios advised by Brighthouse Investment Advisers (each, an "Underlying Portfolio," and, collectively, the "Underlying Portfolios"). Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Asset Allocation Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Asset Allocation Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Asset Allocation Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Investments in the Underlying Portfolios are valued at their closing daily NAV on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

**Investment Transactions and Related Investment Income -** The Asset Allocation Portfolio's security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as net realized gain in the Statement of Operations.

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

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

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**3. Certain Risks** 

In the normal course of business, the Underlying Portfolios invest in securities and enter into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

exposure to each individual counterparty based on the adviser's assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Asset Allocation Portfolio's prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $1557304157 | $0 | $1290720064 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $4807464 | 0.100% | Of the first $500 million |
|  | 0.075% | Of the next $500 million |
|  | 0.050% | On amounts in excess of $1 billion |

---

In addition to the above management fee paid to Brighthouse Investment Advisers, the Asset Allocation Portfolio indirectly pays Brighthouse Investment Advisers an investment advisory fee through its investments in the Underlying Portfolios.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**6. Transactions in Securities of Affiliated Issuers** 

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios' net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2022 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Ending Value<br>as of<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $107444706 | $8072660 | $(31285080) | $(3353728) | $(20000469) | $60878089 |
|  Allspring Mid Cap Value Portfolio (Class A) | 112306043 | 17267324 | (23998717) | 1367992 | (24155899) | 82786743 |
|  Baillie Gifford International Stock Portfolio (Class A) | 456927022 | 87881762 | (8773223) | 553297 | (169920941) | 366667917 |
|  BlackRock Bond Income Portfolio (Class A) | 349812039 | 48740459 | (18562620) | (1895883) | (58191894) | 319902101 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 328428116 | 85575178 | (69390) | (17512) | (194727146) | 219189246 |
|  BlackRock High Yield Portfolio (Class A) | 54498054 | 2371967 | (8733599) | (1255807) | (6502855) | 40377760 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 278374297 | 40994839 | (41548850) | 6444010 | (80999212) | 203265084 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 198185625 | 43278369 | (990598) | (112744) | (77795570) | 162565082 |
|  Brighthouse/Artisan International Portfolio (Class A) | 440713529 | 64590393 | (25993204) | (285804) | (147533838) | 331491076 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 27869935 | 3506615 | (4465363) | 194389 | (6931027) | 20174549 |
|  Brighthouse/Dimensional International Small Company Portfolio (Class A) | 217810821 | 24149376 | (12457645) | (4738058) | (57013173) | 167751321 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) | 108199929 | 3342215 | (26380550) | (2930982) | (1927363) | 80303249 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) | 269372002 | 10850 | (113705834) | (60266112) | 50450670 | 145861576 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 505665394 | 80260775 | (106671586) | 17139742 | (124565672) | 371828653 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 388927919 | 70372577 | (33970136) | 724864 | (142497853) | 283557371 |
|  CBRE Global Real Estate Portfolio (Class A) | 282538102 | 32690325 | (18534198) | 2441439 | (99867889) | 199267779 |
|  Frontier Mid Cap Growth Portfolio (Class A) | 53871338 | 14216647 | (583110) | (281281) | (27508017) | 39715577 |
|  Harris Oakmark International Portfolio (Class A) | 521880019 | 34689873 | (30170099) | (9005360) | (104275593) | 413118840 |
|  Invesco Comstock Portfolio (Class A) | 557469226 | 73766060 | (149494285) | 17758613 | (87447444) | 412052170 |
|  Invesco Global Equity Portfolio (Class A) | 162354798 | 26607429 | (124003) | 14282 | (70441504) | 118411002 |
|  Invesco Small Cap Growth Portfolio (Class A) | 235246112 | 88680672 | (1133411) | (764123) | (144560173) | 177469077 |
|  Jennison Growth Portfolio (Class A) | 481262904 | 126294426 | (228848) | (45511) | (283688226) | 323594745 |
|  JPMorgan Core Bond Portfolio (Class A) | 107369456 | 59828842 | (8558064) | (773585) | (18303778) | 139562871 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 165550313 | 47210818 | (25080306) | (4764943) | (62963020) | 119952862 |
|  Loomis Sayles Growth Portfolio (Class A) | 493055261 | 34455374 | (2716104) | 315314 | (171510299) | 353599546 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 190759081 | 41368744 | (11627754) | (5499708) | (72823743) | 142176620 |
|  MFS Research International Portfolio (Class A) | 358293299 | 26087074 | (26939137) | 5990825 | (93386917) | 270045144 |
|  MFS Value Portfolio (Class A) | 641261034 | 85064883 | (126320968) | (2294330) | (123246776) | 474463843 |
|  Morgan Stanley Discovery Portfolio (Class A) | 22914057 | 20462843 | (766645) | (1438138) | (25313839) | 15858278 |
|  Neuberger Berman Genesis Portfolio (Class A) | 27839802 | 3941701 | (2608372) | 299504 | (9494671) | 19977964 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) | 163797066 | 8727003 | (26916802) | (651487) | (25507134) | 119448646 |
|  PIMCO Total Return Portfolio (Class A) | 322753095 | 8660457 | (37388598) | (8116386) | (45015764) | 240892804 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) | 152205245 | 3409776 | (1209402) | 6492 | (33845204) | 120566907 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 432187039 | 108011904 | (257799) | (44680) | (252563827) | 287332637 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 556372240 | 64574067 | (120216512) | 6763949 | (96502283) | 410991461 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 55315615 | 7564703 | (2409833) | (734228) | (19096334) | 40639923 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 192711454 | 31401897 | (10793288) | (2330982) | (69344466) | 141644615 |
|  TCW Core Fixed Income Portfolio (Class A) | 295403992 | 3907004 | (35034109) | (2873666) | (41024745) | 220378476 |
|  VanEck Global Natural Resources Portfolio (Class A) | 326303922 | 17196514 | (129454279) | 51782978 | (27283115) | 238546020 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) | 216869858 | 8069762 | (64547743) | (6074095) | (33941318) | 120376464 |
|  | $10860119759 | $1557304157 | $(1290720064) | $(8751443) | $(3101268321) | $8016684088 |

---

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Capital Gain<br>Distributions<br>from Affiliated<br>Investments** | **Income earned<br>from affiliates<br>during the period** | **Number of<br>shares held at<br>December 31, 2022** |
|  AB International Bond Portfolio (Class A) | $622923 | $7445757 | 7906245 |
|  Allspring Mid Cap Value Portfolio (Class A) | 16650634 | 616690 | 6875975 |
|  Baillie Gifford International Stock Portfolio (Class A) | 34090981 | 4382613 | 41014308 |
|  BlackRock Bond Income Portfolio (Class A) | 407204 | 9942856 | 3555258 |
|  BlackRock Capital Appreciation Portfolio (Class A) | 68837533 |  | 8877653 |
|  BlackRock High Yield Portfolio (Class A) |  | 2371275 | 5877403 |
|  Brighthouse Small Cap Value Portfolio (Class A) | 38952299 | 2042541 | 14945962 |
|  Brighthouse/abrdn Emerging Markets Equity Portfolio (Class A) | 25092694 | 1788819 | 19399174 |
|  Brighthouse/Artisan International Portfolio (Class A) | 60949678 | 3527037 | 36268170 |
|  Brighthouse/Artisan Mid Cap Value Portfolio (Class A) | 3288901 | 217714 | 95051 |
|  Brighthouse/Dimensional International Small Company Portfolio (Class A) | 19405862 | 4731971 | 17864890 |
|  Brighthouse/Eaton Vance Floating Rate Portfolio (Class A) |  | 3332739 | 8479752 |
|  Brighthouse/Templeton International Bond Portfolio (Class A) |  |  | 19268372 |
|  Brighthouse/Wellington Core Equity Opportunities Portfolio (Class A) | 74229298 | 6031477 | 12357217 |
|  Brighthouse/Wellington Large Cap Research Portfolio (Class A) | 68044433 | 2328145 | 24214976 |
|  CBRE Global Real Estate Portfolio (Class A) | 21135202 | 9714098 | 20757060 |
|  Frontier Mid Cap Growth Portfolio (Class A) | 12456092 |  | 1866333 |
|  Harris Oakmark International Portfolio (Class A) | 23314877 | 10559653 | 36787074 |
|  Invesco Comstock Portfolio (Class A) | 64119306 | 9646754 | 29244299 |
|  Invesco Global Equity Portfolio (Class A) | 18526686 |  | 6285085 |
|  Invesco Small Cap Growth Portfolio (Class A) | 58612170 |  | 24310832 |
|  Jennison Growth Portfolio (Class A) | 89616291 |  | 34609064 |
|  JPMorgan Core Bond Portfolio (Class A) |  | 4109057 | 15805535 |
|  JPMorgan Small Cap Value Portfolio (Class A) | 45605313 | 1605392 | 10855463 |
|  Loomis Sayles Growth Portfolio (Class A) | 34316281 |  | 32771042 |
|  Loomis Sayles Small Cap Growth Portfolio (Class A) | 34214206 |  | 14981730 |
|  MFS Research International Portfolio (Class A) | 19964688 | 6114039 | 24328391 |
|  MFS Value Portfolio (Class A) | 75916167 | 9148716 | 31821854 |
|  Morgan Stanley Discovery Portfolio (Class A) | 8460725 |  | 3915624 |
|  Neuberger Berman Genesis Portfolio (Class A) | 3940455 |  | 1140946 |
|  PIMCO Inflation Protected Bond Portfolio (Class A) |  | 8709154 | 12734397 |
|  PIMCO Total Return Portfolio (Class A) |  | 8628482 | 24988880 |
|  SSGA Emerging Markets Enhanced Index Portfolio (Class A) |  | 3322356 | 13471163 |
| T. Rowe Price Large Cap Growth Portfolio (Class A) | 70809894 |  | 20378201 |
| T. Rowe Price Large Cap Value Portfolio (Class A) | 56130182 | 8443885 | 14285417 |
| T. Rowe Price Mid Cap Growth Portfolio (Class A) | 7556053 |  | 4884606 |
| T. Rowe Price Small Cap Growth Portfolio (Class A) | 28749739 | 339678 | 8446310 |
|  TCW Core Fixed Income Portfolio (Class A) |  | 3884443 | 25389225 |
|  VanEck Global Natural Resources Portfolio (Class A) |  | 7462370 | 18768373 |
|  Western Asset Management Strategic Bond Opportunities Portfolio (Class A) |  | 8058165 | 11218683 |
|  | $1084016767 | $148505876 |  |

---

**7. Contractual Obligations** 

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

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $9368656168 |
|  Gross unrealized appreciation | 117586808 |
|  Gross unrealized (depreciation) | (1469558888) |
|  Net unrealized appreciation (depreciation) | $(1351972080) |

---

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $159297210 | $184202720 | $834296428 | $711148515 | $993593638 | $895351235 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $247863977 | $952076924 | $(1351972080) | $– $| (152031179) |

---

The Asset Allocation Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Asset Allocation Portfolio had no accumulated capital losses.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse Asset Allocation 80 Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse Asset Allocation 80 Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse Asset Allocation 80 Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (the "<u>Advisory Agreements</u>" or "<u>Agreements</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and reports that the Adviser had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Brighthouse Asset Allocation 20 Portfolio, Brighthouse Asset Allocation 40 Portfolio, Brighthouse Asset Allocation 60 Portfolio Brighthouse Asset Allocation 80 Portfolio and Brighthouse Asset Allocation 100 Portfolio (the "<u>Asset Allocation Portfolios</u>") and the American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio (the "<u>American Funds of Funds</u>"). The Board considered the Adviser's services as investment manager to the Portfolios, including with respect to investment programs and personnel, succession management of key personnel, oversight of transition management (as applicable), actions taken with respect to regulatory developments, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic reviews and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the Asset Allocation Portfolios, the Board noted that the Adviser employs at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the "Underlying Portfolios"). Additionally, the Board considered that a committee, consisting of investment professionals from the Adviser, meets regularly to review the management of the Asset Allocation Portfolios and the American Funds of Funds, including asset allocations and performance metrics.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected, and (ii) the selection of the peer groups.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each of the Portfolios, which included comparisons of the Portfolio's contractual management fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>") and a narrower group of peer funds ("<u>Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board also considered that the Adviser had entered into an expense limitation and management fee waiver agreement with Brighthouse Asset Allocation 20 Portfolio pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting the Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser's analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data,

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Brighthouse Asset Allocation 80 Portfolio** 

**Board of Trustees' Consideration of Advisory Agreements—(Continued)** 

the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of distribution and shareholder services activities.

The Board considered information from the Adviser pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated.

\* \* \* \* \*

*Brighthouse Asset Allocation 80 Portfolio.* The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-year period ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed the Brighthouse AA 80 Narrow Index for the one-, three-, and five-year periods ended October 31, 2022. The Board also took into account that the Portfolio underperformed its benchmark, the Dow Jones Moderately Aggressive Portfolio Index, for the one-year period ended October 31, 2022 and outperformed the same benchmark for the three- and five-year periods ended October 31, 2022.

The Board also considered that the Portfolio's actual management fees and total expenses (inclusive of underlying fund expenses and exclusive of 12b-1 fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Managed By Artisan Partners Limited Partnership** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Brighthouse/Artisan Mid Cap Value Portfolio returned -12.62%, -12.84%, and -12.75%, respectively. The Portfolio's benchmark, the Russell Midcap Value Index¹, returned -12.03%.

**MARKET ENVIRONMENT / CONDITIONS** 

U.S. stocks had their worst calendar year since 2008. The highest inflation in four decades drove interest rates markedly higher and led to aggressive monetary tightening by the Federal Reserve (the "Fed") and other central banks. In addition to ongoing supply chain disruptions, the war in Europe contributed to higher energy and food costs, and the persistence of China's zero-COVID policy only worsened supply issues. Weakness was broad based across most sectors. The exceptions were Energy, which advanced on higher oil and gas prices, and the Utilities and Consumer Staples sectors, which benefited from a flight to safety. The weakest performers were Communication Services, Information Technology ("IT") and Real Estate.

While a bear market in stocks garnered headlines, the biggest story of 2022 was undoubtedly the bond market and its reverberations across other asset classes, from equities to real estate. Belying its standing as a safer, less volatile asset class, fixed income suffered a historic drawdown. The Bloomberg U.S. Aggregate Bond Index, a total bond market index that tracks both government debt and investment grade corporate bonds, lost 13%, marking its worst year ever dating back to 1976. Similarly, the 10-year U.S. Treasury declined more than 10%, its biggest decline since 1926, while the 30-year U.S. Treasury fell 39%—the most on record going back to the 1700s! Consequently, there were few diversification benefits to be had in the classic 60/40 diversified stock/bond portfolio, which turned in its third-worst year since the 1930s.

Continuing the performance pattern from 2021, value stocks meaningfully outperformed growth stocks as the increase in cost of capital driven by rising interest rates pressured more richly valued, longer-duration assets. The Russell Midcap Value Index returned -12.03%, outperforming by nearly 15 percentage points the Russell Midcap Growth Index's -26.72% decline. Value has gained substantial ground on growth since the start of 2021; however, due to growth outperforming value for much of the past decade, growth still leads over 5 and 10 years.

**PORTFOLIO REVIEW/PERIOD END POSITIONING** 

The Portfolio slightly trailed the Russell Midcap Value Index as strong stock picking was offset by negative sector allocation impacts. Our heavier exposure to the Communication Services sector and lighter weighting in Energy were meaningful performance headwinds. Stock picking was particularly strong in the Information Technology, Financials and Consumer discretionary sectors.

At the individual stock level, our biggest detractors were Expedia Group, IAC, and Dentsply Sirona.

Expedia, an asset-light online travel agency, and other travel and leisure stocks were broadly weak following strong gains in 2021 when economic reopening plays were most in favor. While it's helpful to put recent declines in context given prior gains, we can't help but be surprised by the magnitude of the declines considering the strong ongoing recovery in travel demand. Moreover, this demand has held up even in the face of higher prices from airfare rates. Expedia's results corroborated the wider rebound seen in travel demand, but there are some concerns about incremental margins, European exposure and market share inroads by rival Booking.com. We find Expedia's business model highly attractive. As one of only two globally scaled online travel agencies, it has a wide economic moat. This scale advantage remains key to our investment case as leisure travel is expected to normalize in the years to come.

IAC, a media and Internet company, is a diversified collection of eclectic businesses that includes a large controlling stake in public company ANGI, ownership of digital and print publisher Dotdash Meredith and a 16.5% stake in public company MGM Resorts. A challenging advertising environment and the transition of Dotdash Meredith's print business to digital have contributed to growth slowing, while ANGI's results have been disappointing, which prompted IAC to part ways with its CEO. Additionally, compression in valuations due to rising interest rates has especially impacted stocks of those companies, like IAC, with nascent assets that previously received greater credit for future growth. These factors have contributed to its depressed valuation, which looks particularly cheap on a sum-of-the-parts analysis. The company has significant excess cash; a history of putting capital to good use through mergers and acquisitions; and a long successful track record of growing controlled businesses. We added to our position in IAC in the fourth quarter, taking advantage of cheaper prices.

Dentsply Sirona is a global dental products manufacturer and distributor. In April, the prior management was fired by the Board. This came as a surprise. Then in May, it was disclosed that the company was conducting an internal investigation regarding inappropriate use of distributor incentives used to hit executive compensation targets in the third and fourth quarters of 2021. The investigation, which was completed by early November, found financial misstatements for the 2021 fiscal year, resulting in overstated net sales. We were pleased the Board acted quickly and effectively, and we have confidence in new management. The stock lost significant value through the course of these events before bottoming when the investigation's findings were announced. Shares then rallied in the final two months of 2022. The restatements were ultimately quite small relative to the impact on the stock in the markets. While the accounting issues damaged investors' trust, the underlying business has remained relatively steady. We remain attracted to the company's steady, highly recurring, market-leading consumables business, consistent free cash flow generation and its undemanding valuation.

The Portfolio's top three contributors were NOV, Arch Capital Group and H&R Block.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Managed By Artisan Partners Limited Partnership** 

**Portfolio Manager Commentary\*—(Continued)** 

NOV, a global energy services company, sells equipment and components used in oil and gas drilling and production operations. When we purchased NOV in the third quarter of 2021, it was our first foray into the Energy sector in more than a year. At the time, the business was dealing with the overhang of excess equipment in the onshore business and still absorbing aftereffects of the last offshore rig-building cycle that left the industry oversupplied. However, the cycle appears to be turning in NOV's favor as capex budgets are now rising and later cycle offshore drilling markets are showing signs of stabilization. NOV's valuation remains undemanding in our view, and we believe margins still have much further to rise as the business recovers and cost savings opportunities are realized.

Arch Capital Group, a global reinsurer, was our top contributor in the fourth quarter. In October, shares shot higher on news that the stock was being added to the S&P 500 Index; however, there are fundamental factors also at play. Though catastrophe losses have been larger than expected, due partly to Hurricane Ian, we believe the reinsurance markets are in an upswing in terms of pricing and premium growth, while rising interest rates are boosting net interest income.

Tax preparation company H&R Block benefited from increased tax filing complexity given the influences of increased retail trading in stocks and cryptocurrency and one-time child tax credits in the 2021 tax year. A mix shift toward more complex tax filings led to share gains in the higher value-add assisted tax preparation category. In an inflationary environment and amid concerns of economic slowing due to tightening financial conditions, investors naturally value H&R Block's pricing power, steady growth characteristics, strong free cash flow and robust return of capital.

At period end, the Portfolio maintained above-benchmark positions in the Communications Services, Consumer Discretionary and Consumer Staples sectors. Our largest sector underweights were Utilities, Real Estate and Materials.

**Daniel L. Kane** 

**Thomas Reynolds** 

**Craig Inman** 

Portfolio Managers

*Artisan Partners Limited Partnership* 

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

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

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP VALUE INDEX**![LOGO](g400324g59h65.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse/Artisan Mid Cap Value Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -12.62 | 4.82 | 8.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -12.84 | 4.56 | 8.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -12.75 | 4.66 | 8.13 |
| &nbsp;&nbsp;&nbsp;**Russell Midcap Value Index** | -12.03 | 5.72 | 10.11 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Analog Devices, Inc.** | **3.9** |
| **Globe Life, Inc.** | **3.5** |
| **Arch Capital Group, Ltd.** | **3.4** |
| **U-Haul Holding Co.** | **3.1** |
| **NOV, Inc.** | **3.1** |
| **OGE Energy Corp.** | **2.8** |
| **Lamar Advertising Co.- Class A** | **2.7** |
| **nVent Electric plc** | **2.4** |
| **Marriott International, Inc. - Class A** | **2.4** |
| **First Citizens BancShares, Inc. - Class A** | **2.4** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Financials** | **20.6** |
| **Communication Services** | **14.2** |
| **Consumer Discretionary** | **14.2** |
| **Industrials** | **13.1** |
| **Information Technology** | **9.6** |
| **Health Care** | **6.0** |
| **Consumer Staples** | **5.7** |
| **Real Estate** | **5.2** |
| **Energy** | **3.1** |
| **Utilities** | **2.8** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse/Artisan Mid Cap Value Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.76% | $1000.00 | $1027.90 | $3.88 |
|  | Hypothetical\* | 0.76% | $1000.00 | $1021.37 | $3.87 |
|  Class B (a) | Actual | 1.01% | $1000.00 | $1026.60 | $5.16 |
|  | Hypothetical\* | 1.01% | $1000.00 | $1020.11 | $5.14 |
|  Class E (a) | Actual | 0.91% | $1000.00 | $1027.10 | $4.65 |
|  | Hypothetical\* | 0.91% | $1000.00 | $1020.62 | $4.63 |

---

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

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

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

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—97.1% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.7%** | | |
|  CAE, Inc. (a) (b) | 679930 | $13149846 |
| **Air Freight & Logistics—1.9%** |  |  |
|  Expeditors International of Washington, Inc. (b) | 140833 | 14635365 |
| **Auto Components—4.0%** |  |  |
|  BorgWarner, Inc. | 368703 | 14840296 |
|  Gentex Corp. (b) | 554699 | 15126641 |
|  |  | 29966937 |
| **Banks—5.5%** |  |  |
|  First Citizens BancShares, Inc. - Class A (b) | 23467 | 17796434 |
|  M&T Bank Corp. | 85731 | 12436139 |
|  Washington Federal, Inc. (b) | 333564 | 11191072 |
|  |  | 41423645 |
| **Capital Markets—4.8%** |  |  |
|  Carlyle Group, Inc. (The) | 324451 | 9681618 |
|  Moelis & Co. - Class A (b) | 339031 | 13008620 |
|  Northern Trust Corp. (b) | 155329 | 13745063 |
|  |  | 36435301 |
| **Chemicals—2.6%** |  |  |
|  Celanese Corp. | 94689 | 9681004 |
|  Corteva, Inc. | 172413 | 10134436 |
|  |  | 19815440 |
| **Consumer Finance—2.2%** |  |  |
|  Synchrony Financial | 515007 | 16923130 |
| **Diversified Consumer Services—1.5%** |  |  |
|  H&R Block, Inc. (b) | 301683 | 11014446 |
| **Electric Utilities—2.8%** |  |  |
|  OGE Energy Corp. (b) | 536582 | 21221818 |
| **Electrical Equipment—2.4%** |  |  |
|  nVent Electric plc | 479396 | 18442364 |
| **Electronic Equipment, Instruments & Components—2.2%** |  |  |
|  Vontier Corp. (b) | 853291 | 16494115 |
| **Energy Equipment & Services—3.1%** |  |  |
|  NOV, Inc. (b) | 1118580 | 23367136 |
| **Entertainment—3.4%** |  |  |
|  Electronic Arts, Inc. (b) | 114280 | 13962730 |
|  Warner Bros Discovery, Inc. (a) (b) | 1195778 | 11335976 |
|  |  | 25298706 |
| **Equity Real Estate Investment Trusts—3.9%** |  |  |
|  Lamar Advertising Co. - Class A | 216329 | 20421458 |
|  Public Storage | 30885 | 8653668 |
|  |  | 29075126 |
| **Food & Staples Retailing—3.7%** |  |  |
|  Kroger Co. (The) | 347680 | 15499575 |
|  Sysco Corp. (b) | 161876 | 12375420 |
|  |  | 27874995 |
| **Food Products—2.0%** |  |  |
|  Tyson Foods, Inc. - Class A | 239829 | 14929355 |
| **Health Care Equipment & Supplies—2.2%** |  |  |
|  Dentsply Sirona, Inc. | 520589 | 16575554 |
| **Health Care Providers & Services—3.9%** |  |  |
|  AmerisourceBergen Corp. (b) | 69520 | 11520159 |
|  Centene Corp. (a) | 214745 | 17611238 |
|  |  | 29131397 |
| **Hotels, Restaurants & Leisure—6.5%** |  |  |
|  Expedia Group, Inc. (a) | 173748 | 15220325 |
|  Marriott International, Inc. - Class A | 121663 | 18114404 |
|  Vail Resorts, Inc. (b) | 66349 | 15814284 |
|  |  | 49149013 |
| **Insurance—8.1%** |  |  |
|  Arch Capital Group, Ltd. (a) | 405826 | 25477756 |
|  Globe Life, Inc. | 218706 | 26365009 |
|  Progressive Corp. (The) | 73507 | 9534593 |
|  |  | 61377358 |
| **Interactive Media & Services—1.7%** |  |  |
|  IAC, Inc. (a) (b) | 293927 | 13050359 |
| **Machinery—1.8%** |  |  |
|  Otis Worldwide Corp. | 173707 | 13602995 |
| **Media—9.1%** |  |  |
|  Cable One, Inc. (b) | 24975 | 17778703 |
|  Liberty Broadband Corp. - Class C (a) (b) | 48650 | 3710536 |
|  Liberty Media Corp. - Class A (a) (b) | 180420 | 7092310 |
|  Liberty Media Corp. - Class C (a) | 179340 | 7017574 |
|  News Corp. - Class A | 897038 | 16326092 |
|  Omnicom Group, Inc. | 207102 | 16893310 |
|  |  | 68818525 |
| **Real Estate Management & Development—1.3%** | **Real Estate Management & Development—1.3%** |  |
|  Jones Lang LaSalle, Inc. (a) | 62925 | 10028357 |
| **Road & Rail—3.5%** |  |  |
|  U-Haul Holding Co. (Non-Voting Shares) (b) | 425952 | 23418841 |
|  U-Haul Holding Co. (b) | 48928 | 2944976 |
|  |  | 26363817 |
| **Semiconductors & Semiconductor Equipment—3.9%** | **Semiconductors & Semiconductor Equipment—3.9%** |  |
|  Analog Devices, Inc. | 180523 | 29611188 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal**<br> **Amount\*** | **Value** |
| **Software—2.1%** | | |
|  Check Point Software Technologies, Ltd. (a) | 125641 | $15850869 |
| **Specialty Retail—2.2%** |  |  |
|  AutoNation, Inc. (a) (b) | 157884 | 16940953 |
| **Technology Hardware, Storage & Peripherals—1.4%** |  |  |
|  NetApp, Inc. | 173388 | 10413683 |
| **Trading Companies & Distributors—1.7%** |  |  |
|  Air Lease Corp. | 332063 | 12757860 |
|  Total Common Stocks <br>(Cost $559,030,567) |  | 733739653 |
| **Short-Term Investment—3.0%** |  |  |
| **Repurchase Agreement—3.0%** |  |  |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $22,473,869; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $22,918,816. | 22469375 | 22469375 |
|  Total Short-Term Investments <br>(Cost $22,469,375) |  | 22469375 |
| **Securities Lending Reinvestments (c)—16.5%** | **Securities Lending Reinvestments (c)—16.5%** | **Securities Lending Reinvestments (c)—16.5%** |
| **Certificates of Deposit—3.8%** |  |  |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (d) | 1000000 | 1001351 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (d) | 3000000 | 3000000 |
|  Bank of Nova Scotia<br>4.710%, FEDEFF PRV + 0.380%, 01/06/23 (d) | 1000000 | 1000018 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (d) | 2000000 | 2000841 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (d) | 1000000 | 1000066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (d) | 3000000 | 3001148 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (d) | 2000000 | 2000142 |
|  Cooperatieve Rabobank UA<br>4.670%, SOFR + 0.370%, 03/20/23 (d) | 2000000 | 2000000 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (d) | 2000000 | 2000600 |
|  Natixis S.A. (New York)<br>4.800%, SOFR + 0.500%, 02/13/23 (d) | 2000000 | 2000789 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (d) | 1000000 | 999984 |
|  Standard Chartered Bank (NY)<br>5.040%, SOFR + 0.740%, 05/02/23 (d) | 1000000 | 1001518 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (d) | 2000000 | 2000220 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (d) | 2000000 | 2000656 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (d) | 2000000 | 2000556 |
| **Certificates of Deposit—(Continued)** |  |  |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (d) | 2000000 | $1999780 |
|  |  | 29007669 |
| **Repurchase Agreements—9.0%** |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $21,378,485; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $21,795,883. | 21368513 | 21368513 |
|  Citigroup Global Markets, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $4,017,967; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $4,080,000. | 4000000 | 4000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $2,050,053; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $2,040,000. | 2000000 | 2000000 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $5,002,361; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $5,102,408. | 5000000 | 5000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $1,000,480; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% -4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $1,023,869. | 1000000 | 1000000 |
|  National Bank of Canada<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $10,008,400; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $10,223,782. | 10000000 | 10000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $2,001,731; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $2,177,657. | 2000000 | 2000000 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $1,004,521; collateralized by various Common Stock with an aggregate market value of $1,111,255. | 1000000 | 1000000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (c)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal**<br> **Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $1,200,567; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $1,226,168. | 1200000 | $1200000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $5,002,367; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.250%, maturity dates ranging from 12/31/23 - 02/15/30, and an aggregate market value of $5,100,001. | 5000000 | 5000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $1,900,927; collateralized by various Common Stock with an aggregate market value of $2,114,409. | 1900000 | 1900000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $4,302,107; collateralized by various Common Stock with an aggregate market value of $4,785,726. | 4300000 | 4300000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $2,301,977; collateralized by various Common Stock with an aggregate market value of $2,560,341. | 2300000 | 2300000 |
|  TD Prime Services LLC<br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $7,003,422; collateralized by various Common Stock with an aggregate market value of $7,776,254. | 7000000 | 7000000 |
|  |  | 68068513 |
| **Time Deposit—0.7%** |  |  |
|  Australia & New Zealand Banking Group, Ltd.<br>4.300%, 01/03/23 | 5000000 | 5000000 |
| **Mutual Funds—3.0%** |  |  |
|  Allspring Government Money Market Fund, Select Class<br>4.090% (e) | 5000000 | 5000000 |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (e) | 2000000 | 2000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (e) | 2000000 | 2000000 |
|  HSBC U.S. Government Money Market Fund, Class I 4.130% (e) | 5000000 | 5000000 |
|  State Street Institutional U.S. Government Money Market Fund, Premier Class 4.120% (e) | 2000000 | 2000000 |
|  STIT-Government & Agency Portfolio, Institutional Class<br>4.220% (e) | 5000000 | 5000000 |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (e) | 2000000 | 2000000 |
|  |  | 23000000 |
|  Total Securities Lending Reinvestments <br>(Cost $125,068,513) |  | 125076182 |
|  Total Investments—116.6% <br>(Cost $706,568,455) |  | 881285210 |
|  Other assets and liabilities (net)—(16.6)% |  | (125564197) |
| **Net Assets—100.0%** |  | $755721013 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $128,896,318 and the collateral received consisted of cash in the amount of $125,068,513 and non-cash collateral with a value of $7,276,864. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(d) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(e) The rate shown represents the annualized seven-day yield as of December 31, 2022.

**Glossary of Abbreviations** 

Index Abbreviations

------

(FEDEFF PRV)— Effective Federal Funds Rate <br> (SOFR)— Secured Overnight Financing Rate

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $733739653 | $— | $— | $733739653 |
|  Total Short-Term Investment\* |  | 22469375 |  | 22469375 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 29007669 |  | 29007669 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 68068513 |  | 68068513 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposit |  | 5000000 |  | 5000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 23000000 |  |  | 23000000 |
|  Total Securities Lending Reinvestments | 23000000 | 102076182 |  | 125076182 |
|  Total Investments | $756739653 | $124545557 | $— | $881285210 |
|  Collateral for Securities Loaned (Liability) | $— | $(125068513) | $— | $(125068513) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $881285210 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 10319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 623759 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 881922437 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 125068513 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 320300 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 474910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 62671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 122677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 126201424 |
|  **Net Assets** | $755721013 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $476607215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 279113798 |
|  **Net Assets** | $755721013 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $448159992 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 257807159 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 49753862 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 2111432 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 1279928 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 240666 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $212.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 201.42 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 206.73 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $706,568,455.

(b) Includes securities loaned at value of $128,896,318.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends | $13802321 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 113204 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 151389 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 14066914 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 6925430 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 45203 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 48731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 721964 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 83447 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 73311 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 7324 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 13281 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 8019697 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (829027) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 7190670 |
|  **Net Investment Income** | 6876244 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
|  Net realized gain on investments | 99659665 |
|  Net change in unrealized depreciation on investments | (225784953) |
|  Net realized and unrealized gain (loss) | (126125288) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(119249044) |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $6876244 | $7851617 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 99659665 | 123948973 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (225784953) | 104519894 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (119249044) | 236320484 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (77121043) | (17526029) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (45576841) | (10090097) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (8681396) | (2047136) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (131379280) | (29663262) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 10876023 | (158607501) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (239752301) | 48049721 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 995473314 | 947423593 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $755721013 | $995473314 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 25791 | $6409072 | 56604 | $15623550 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 370098 | 77121043 | 63643 | 17526029 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (312371) | (77879258) | (481970) | (130769898) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 83518 | $5650857 | (361723) | $(97620319) |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 40367 | $9529397 | 61681 | $16181538 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 230163 | 45576841 | 38255 | 10090097 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (214871) | (50620534) | (285477) | (74544418) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 55659 | $4485704 | (185541) | $(48272783) |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1437 | $331304 | 5889 | $1577003 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 42738 | 8681396 | 7597 | 2047136 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (34537) | (8273238) | (60940) | (16338538) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 9638 | $739462 | (47454) | $(12714399) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $10876023 |  | $(158607501) |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $290.67 | $236.08 | $229.44 | $211.86 | $259.07 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.19 | 2.42 | 2.44 | 2.34 | 1.75 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (39.64) | 60.63 | 10.26 | 45.48 | (33.63) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (37.45) | 63.05 | 12.70 | 47.82 | (31.88) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.54) | (2.58) | (1.90) | (1.85) | (1.62) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (38.43) | (5.88) | (4.16) | (28.39) | (13.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (40.97) | (8.46) | (6.06) | (30.24) | (15.33) |
|  **Net Asset Value, End of Period** | $212.25 | $290.67 | $236.08 | $229.44 | $211.86 |
|  **Total Return (%)** (b) | (12.62) | 26.91 | 6.25 | 23.75 | (13.20) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.85 | 0.85 | 0.87 | 0.86 | 0.85 |
|  Net ratio of expenses to average net assets (%) (c) | 0.76 | 0.77 | 0.78 | 0.81 | 0.81 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.91 | 0.88 | 1.25 | 1.03 | 0.70 |
|  Portfolio turnover rate (%) | 20 | 12 | 44 | 15 | 23 |
|  Net assets, end of period (in millions) | $448.2 | $589.4 | $564.1 | $546.9 | $476.3 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $278.02 | $226.22 | $220.07 | $204.18 | $250.17 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 1.51 | 1.65 | 1.88 | 1.70 | 1.09 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (37.89) | 58.07 | 9.79 | 43.77 | (32.43) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (36.38) | 59.72 | 11.67 | 45.47 | (31.34) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (1.79) | (2.04) | (1.36) | (1.19) | (0.94) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (38.43) | (5.88) | (4.16) | (28.39) | (13.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (40.22) | (7.92) | (5.52) | (29.58) | (14.65) |
|  **Net Asset Value, End of Period** | $201.42 | $278.02 | $226.22 | $220.07 | $204.18 |
|  **Total Return (%)** (b) | (12.84) | 26.59 | 5.98 | 23.44 | (13.42) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.10 | 1.10 | 1.12 | 1.11 | 1.10 |
|  Net ratio of expenses to average net assets (%) (c) | 1.01 | 1.02 | 1.03 | 1.06 | 1.06 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.66 | 0.63 | 1.00 | 0.78 | 0.45 |
|  Portfolio turnover rate (%) | 20 | 12 | 44 | 15 | 23 |
|  Net assets, end of period (in millions) | $257.8 | $340.4 | $318.9 | $323 | $293 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $284.18 | $231.04 | $224.61 | $207.89 | $254.48 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 1.79 | 1.95 | 2.12 | 1.95 | 1.36 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (38.74) | 59.32 | 10.02 | 44.61 | (33.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (36.95) | 61.27 | 12.14 | 46.56 | (31.66) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.07) | (2.25) | (1.55) | (1.45) | (1.22) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (38.43) | (5.88) | (4.16) | (28.39) | (13.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (40.50) | (8.13) | (5.71) | (29.84) | (14.93) |
|  **Net Asset Value, End of Period** | $206.73 | $284.18 | $231.04 | $224.61 | $207.89 |
|  **Total Return (%)** (b) | (12.75) | 26.71 | 6.09 | 23.56 | (13.33) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.00 | 1.00 | 1.02 | 1.01 | 1.00 |
|  Net ratio of expenses to average net assets (%) (c) | 0.91 | 0.92 | 0.93 | 0.96 | 0.96 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.76 | 0.73 | 1.10 | 0.88 | 0.55 |
|  Portfolio turnover rate (%) | 20 | 12 | 44 | 15 | 23 |
|  Net assets, end of period (in millions) | $49.8 | $65.7 | $64.3 | $65.8 | $61.5 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $22,469,375. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $68,068,513. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $162806297 | $0 | $270414000 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $6925430 | 0.820% | Of the first $1 billion |
|  | 0.780% | On amounts in excess of $1 billion |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Artisan Partners Limited Partnership is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.090% | First $500 million |
| 0.110% | $500 million to $1 billion |
| 0.130% | Over of $1 billion |

---

An identical agreement was in place for the period from January 1, 2022 through April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $708386057 |
|  Gross unrealized appreciation | 208339822 |
|  Gross unrealized (depreciation) | (35440669) |
|  Net unrealized appreciation (depreciation) | $172899153 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $14116238 | $8512220 | $117263042 | $21151042 | $131379280 | $29663262 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $6363906 | $100003090 | $172899155 | $– $| 279266151 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse/Artisan Mid Cap Value Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Artisan Mid Cap Value Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Artisan Mid Cap Value Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Brighthouse/Artisan Mid Cap Value Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Artisan Partners Limited Partnership regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the Russell Midcap Value Index, for the one- and three-year periods ended October 31, 2022 and underperformed its benchmark for the five-year period ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Artisan Mid Cap Value Portfolio** 

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

The Board also considered that the Portfolio's actual management fees were equal to the Expense Group median and above the Expense Universe median and the Sub-advised Expense Universe median. The Board also considered that the total expenses (exclusive of 12b-1 fees) were below the Expense Group median and equal to the Expense Universe median and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Managed by Dimensional Fund Advisors LP** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A and B shares of the Brighthouse/Dimensional International Small Company Portfolio returned -17.47% and -17.70%, respectively. The Portfolio's benchmark, the MSCI World ex-U.S. Small Cap Index¹, returned -20.59%.

**MARKET ENVIRONMENT / CONDITIONS** 

In U.S. dollar terms, developed ex-U.S. markets had negative performance for the one-year period ended December 31, 2022, but outperformed both U.S. and emerging markets. The MSCI World ex-USA Investable Market Index (net dividends) returned -15.3%, as compared to -19.2% for the Russell 3000 Index and -19.8% for the MSCI Emerging Markets Investable Market Index (net dividends).

Most developed ex-U.S. market currencies, particularly the Swedish krona and Japanese yen, depreciated relative to the U.S. dollar. Overall, currency movements had a negative impact on the U.S. dollar-denominated returns of the developed ex-U.S. market.

Along the market capitalization dimension, small caps (MSCI World ex-U.S. Small Cap Index, net dividends) underperformed large caps (MSCI World ex-U.S. Index, net dividends) by 6.3%. Mid-caps (MSCI World ex-U.S. Mid Cap Index, net dividends), a subset of the MSCI World ex-U.S. Index universe, outperformed small caps by 0.7% and underperformed large caps by 5.6%.

Along the relative price dimension, large cap value stocks (MSCI World ex-U.S. Value Index, net dividends) outperformed large cap growth stocks (MSCI World ex-U.S. Growth Index, net dividends) by 17.0%, and small cap value stocks (MSCI World ex-U.S. Small Cap Value Index, net dividends) outperformed small cap growth stocks (MSCI World ex-U.S. Small Cap Growth Index, net dividends) by 13.0%.

Along the profitability dimension, stocks with higher profitability underperformed stocks with lower profitability within large caps and outperformed within small caps*.*

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio outperformed its benchmark during the reporting period. The Portfolio's exclusion of stocks with the lowest profitability and highest relative prices contributed positively to relative performance. The Portfolio's exclusion of stocks with high asset growth also contributed positively to relative performance. Additionally, the Portfolio's exclusion of Real Estate Investment Trusts ("REITs") contributed positively to relative performance.

At the sector level, the Portfolio's exclusion of REITs contributed positively to relative performance. The Portfolio's overweight to the Energy sector, due to the exclusion of REITs and other securities that are not eligible for the Portfolio, also contributed positively to relative performance as this sector outperformed the overall Index. Conversely, the Portfolio's overweight to the Consumer Discretionary sector, due to the exclusion of REITs and other securities that are not eligible for the Portfolio, detracted from relative performance as this sector underperformed the overall Index.

The Portfolio held more than 3,700 securities as of December 31, 2022 and was diversified across countries and sectors. We design the Portfolio to provide broad exposure to small cap securities within non-U.S. developed markets. As a result of the Portfolio's diversified investment approach, performance is determined principally by broad trends in non-U.S. developed equity markets, rather than by the behavior of a limited group of securities in a particular industry, country, or asset class.

**Jed Fogdall** 

**Arun Keswani** 

**Joel Schneider** 

**Bhanu Singh** 

Portfolio Managers

*Dimensional Fund Advisors LP* 

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

<sup>1</sup> The MSCI World ex-U.S. Small Cap Index is an unmanaged index that measures the performance of stocks with market capitalizations between US $200 million and $800 million across 23 developed markets, excluding the United States. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE MSCI WORLD EX-U.S. SMALL CAP INDEX**![LOGO](g400082g96l86.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse/Dimensional International Small Company Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -17.47 | 0.19 | 5.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -17.70 | -0.07 | 5.64 |
| &nbsp;&nbsp;&nbsp;**MSCI World ex-U.S. Small Cap Index** | -20.59 | 0.45 | 5.77 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Bank of Ireland Group plc** | **0.4** |
| **Banco BPM S.p.A.** | **0.3** |
| **PSP Swiss Property AG** | **0.3** |
| **Georg Fischer AG** | **0.3** |
| **Orion Oyj- Class B** | **0.3** |
| **Banco de Sabadell S.A.** | **0.3** |
| **Element Fleet Management Corp.** | **0.3** |
| **Beazley plc** | **0.3** |
| **Swiss Prime Site AG** | **0.2** |
| **Valmet Oyj** | **0.2** |

---

**Top Countries** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Japan** | **25.0** |
| **Canada** | **11.8** |
| **United Kingdom** | **11.4** |
| **Switzerland** | **7.5** |
| **Australia** | **6.1** |
| **Germany** | **6.0** |
| **France** | **4.8** |
| **Italy** | **3.6** |
| **Denmark** | **2.5** |
| **Sweden** | **2.5** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<br>Brighthouse/Dimensional International Small Company Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,**<br>**2022** |
|  Class A (a) | Actual | 0.80% | $1000.00 | $1049.20 | $4.13 |
|  | Hypothetical\* | 0.80% | $1000.00 | $1021.17 | $4.08 |
|  Class B (a) | Actual | 1.05% | $1000.00 | $1047.30 | $5.42 |
|  | Hypothetical\* | 1.05% | $1000.00 | $1019.91 | $5.35 |

---

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

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

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

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—99.5% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Australia—6.1%** | | |
|  A2B Australia, Ltd. (a) | 55813 | $40289 |
|  Accent Group, Ltd. | 97699 | 111623 |
|  Adairs, Ltd. | 39936 | 59755 |
|  Adbri, Ltd. | 108171 | 120788 |
|  Ainsworth Game Technology, Ltd. (a) | 51616 | 38134 |
|  Alkane Resources, Ltd. (a) | 145570 | 51921 |
|  Alliance Aviation Services, Ltd. (a) | 6026 | 12798 |
|  AMA Group, Ltd. (a) | 197423 | 28514 |
|  AMP, Ltd. (a) | 410764 | 367418 |
|  Ansell, Ltd. | 17961 | 345059 |
|  Appen, Ltd. | 12693 | 21454 |
|  Arafura Rare Earths, Ltd. (a) | 350967 | 108307 |
|  ARB Corp., Ltd. | 21812 | 380619 |
|  Ardent Leisure Group, Ltd. | 113950 | 47061 |
|  AUB Group, Ltd. | 34964 | 535734 |
|  Audinate Group, Ltd. (a) | 11752 | 59778 |
|  Aurelia Metals, Ltd. (a) | 300118 | 24853 |
|  Aussie Broadband, Ltd. (a) | 32987 | 57444 |
|  Austal, Ltd. | 105389 | 149173 |
|  Australian Agricultural Co., Ltd. (a) | 114933 | 136133 |
|  Australian Ethical Investment, Ltd. | 7596 | 20102 |
|  Australian Finance Group, Ltd. | 54872 | 54024 |
|  Australian Strategic Materials, Ltd. (a) | 36700 | 35201 |
|  Auswide Bank, Ltd. | 10608 | 42977 |
|  AVJennings, Ltd. | 10332 | 2849 |
|  AVZ Minerals, Ltd. (a) (b) (c) | 403512 | 84616 |
|  Baby Bunting Group, Ltd. | 24951 | 45992 |
|  Bapcor, Ltd. | 85877 | 377283 |
|  Beach Energy, Ltd. | 236994 | 258028 |
|  Bega Cheese, Ltd. | 99511 | 262656 |
|  Bellevue Gold, Ltd. (a) | 246272 | 187385 |
|  Black Rock Mining, Ltd. (a) | 70006 | 6248 |
|  Blackmores, Ltd. | 4688 | 229731 |
|  Boral, Ltd. | 77809 | 152977 |
|  Boss Energy, Ltd. (a) | 15954 | 23094 |
|  Bravura Solutions, Ltd. | 79636 | 46882 |
|  Breville Group, Ltd. | 25536 | 318568 |
|  Brickworks, Ltd. | 16435 | 245228 |
|  Bubs Australia, Ltd. (a) | 40453 | 8256 |
|  BWX, Ltd. (a) | 32748 | 3790 |
|  Calidus Resources, Ltd. (a) | 33980 | 6189 |
|  Capitol Health, Ltd. | 260324 | 56300 |
|  Capral, Ltd. | 5292 | 26563 |
|  Capricorn Metals, Ltd. (a) | 63797 | 194449 |
|  Carnarvon Energy, Ltd. (a) | 136527 | 13748 |
|  Cash Converters International, Ltd. | 152939 | 24459 |
|  Catapult Group International, Ltd. (a) | 33605 | 16695 |
|  Cedar Woods Properties, Ltd. | 22776 | 66958 |
|  Champion Iron, Ltd. | 59773 | 294726 |
|  City Chic Collective, Ltd. (a) | 43372 | 13968 |
|  Clinuvel Pharmaceuticals, Ltd. | 9453 | 139320 |
|  Clover Corp., Ltd. | 39945 | 33724 |
|  Codan, Ltd. | 31190 | 86969 |
|  Collins Foods, Ltd. | 30579 | 149591 |
|  Cooper Energy, Ltd. (a) | 890406 | 112180 |
|  Core Lithium, Ltd. (a) | 58451 | 39526 |
|  Corporate Travel Management, Ltd. | 28366 | 284033 |
| **Australia—(Continued)** |  |  |
|  Costa Group Holdings, Ltd. | 138722 | 259435 |
|  Credit Corp. Group, Ltd. | 20160 | 257630 |
|  CSR, Ltd. | 156422 | 499340 |
|  Data #3, Ltd. | 49016 | 225724 |
|  De Grey Mining, Ltd. (a) | 320331 | 277018 |
|  Deep Yellow, Ltd. (a) | 17263 | 8209 |
|  Dicker Data, Ltd. | 13151 | 91162 |
|  Domain Holdings Australia, Ltd. | 84414 | 155442 |
|  Downer EDI, Ltd. | 150888 | 377122 |
|  Eagers Automotive, Ltd. | 35943 | 264666 |
|  Earlypay, Ltd. | 54160 | 7375 |
|  Eclipx Group, Ltd. (a) | 82973 | 112586 |
|  Elanor Investor Group | 5934 | 6586 |
|  Elders, Ltd. | 45511 | 312043 |
|  Elixir Energy, Ltd. (a) | 29923 | 3018 |
|  Emeco Holdings, Ltd. | 147781 | 77438 |
|  Emerald Resources NL (a) | 42078 | 33928 |
|  EML Payments, Ltd. (a) | 62760 | 26910 |
|  Energy Transition Minerals, Ltd. (a) | 349524 | 14539 |
|  Energy World Corp., Ltd. (a) | 472609 | 15067 |
|  EQT Holdings, Ltd. | 4967 | 84325 |
|  Estia Health, Ltd. | 52899 | 74956 |
|  Euroz Hartleys Group, Ltd. | 23159 | 17421 |
|  EVT, Ltd. | 33773 | 292374 |
|  Fiducian Group, Ltd. | 3121 | 14148 |
|  Finbar Group, Ltd. | 6909 | 2963 |
|  Firefinch, Ltd. (a) (b) (c) | 39761 | 4061 |
|  Fleetwood, Ltd. | 35042 | 33868 |
|  Flight Centre Travel Group, Ltd. (a) | 36455 | 359265 |
|  Frontier Digital Ventures, Ltd. (a) | 10067 | 4628 |
|  G8 Education, Ltd. | 300520 | 225716 |
|  Galan Lithium, Ltd. (a) | 27489 | 19992 |
|  Gold Road Resources, Ltd. | 242710 | 275312 |
|  GR Engineering Services, Ltd. | 5075 | 7026 |
|  GrainCorp, Ltd. - Class A | 78617 | 396795 |
|  Grange Resources, Ltd. | 120000 | 68720 |
|  GUD Holdings, Ltd. | 52411 | 270097 |
|  GWA Group, Ltd. | 81814 | 114295 |
|  Hansen Technologies, Ltd. | 57391 | 200724 |
|  Hastings Technology Metals, Ltd. (a) | 7646 | 18312 |
|  Healius, Ltd. | 153195 | 319885 |
|  Helia Group, Ltd. | 88585 | 165899 |
|  HT&E, Ltd. | 82651 | 54337 |
|  HUB24, Ltd. | 19005 | 343449 |
|  Humm Group, Ltd. | 110670 | 42344 |
|  IDM International, Ltd. (a) (b) (c) | 1969 | 0 |
|  Iluka Resources, Ltd. | 22035 | 141936 |
|  Imdex, Ltd. | 110358 | 165904 |
|  Immutep, Ltd. (ADR) (a) | 8886 | 15551 |
|  Infomedia, Ltd. | 133597 | 108714 |
|  Inghams Group, Ltd. | 86621 | 168562 |
|  Insignia Financial, Ltd. | 192452 | 438459 |
|  Integral Diagnostics, Ltd. | 46301 | 92335 |
|  Integrated Research, Ltd. (a) | 28972 | 8841 |
|  Invocare, Ltd. | 44413 | 333213 |
|  ioneer, Ltd. (a) | 304527 | 78656 |
|  IPH, Ltd. | 59961 | 353058 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Australia—(Continued)** | | |
|  Iress, Ltd. | 58472 | $379818 |
|  IVE Group, Ltd. | 19754 | 31602 |
|  Johns Lyng Group, Ltd. | 42975 | 180862 |
|  Jumbo Interactive, Ltd. | 12118 | 115232 |
|  Jupiter Mines, Ltd. | 439415 | 65666 |
|  Karoon Energy, Ltd. (a) | 168923 | 251561 |
|  Kelsian Group, Ltd. | 12263 | 47190 |
|  Kogan.com, Ltd. (a) | 16956 | 40358 |
|  LEO LIithium, Ltd. (a) | 28400 | 9359 |
|  Lifestyle Communities, Ltd. | 20891 | 270860 |
|  Link Administration Holdings, Ltd. | 158207 | 212544 |
|  Lovisa Holdings, Ltd. | 13735 | 215738 |
|  Lycopodium, Ltd. | 6179 | 28816 |
|  MA Financial Group, Ltd. | 11341 | 35027 |
|  Macmahon Holdings, Ltd. | 380170 | 37538 |
|  Macquarie Telecom Group, Ltd. (a) | 881 | 35678 |
|  Magellan Financial Group, Ltd. | 8190 | 49771 |
|  Mayne Pharma Group, Ltd. | 452144 | 61197 |
|  McMillan Shakespeare, Ltd. | 26993 | 247039 |
|  McPherson's, Ltd. | 39600 | 18049 |
|  Mesoblast, Ltd. (a) | 42929 | 25112 |
|  Metals X, Ltd. (a) | 147577 | 38554 |
|  Metcash, Ltd. | 64100 | 173600 |
|  Mincor Resources NL (a) | 54848 | 56126 |
|  MMA Offshore, Ltd. (a) | 78350 | 50948 |
|  Monadelphous Group, Ltd. | 35445 | 322096 |
|  Monash IVF Group, Ltd. | 52109 | 33757 |
|  Morning Star Gold NL (a) (b) (c) | 33455 | 0 |
|  Mount Gibson Iron, Ltd. (a) | 158334 | 52246 |
|  Myer Holdings, Ltd. | 275411 | 127396 |
|  MyState, Ltd. | 24019 | 63956 |
|  Nanosonics, Ltd. (a) | 62508 | 182245 |
|  Navigator Global Investments, Ltd. | 52466 | 41451 |
|  Netwealth Group, Ltd. | 28212 | 231978 |
|  New Hope Corp., Ltd. | 137727 | 594434 |
|  Newcrest Mining, Ltd. | 16507 | 230903 |
|  nib holdings, Ltd. | 125341 | 656069 |
|  Nick Scali, Ltd. | 21771 | 157498 |
|  Nickel Industries, Ltd. | 186202 | 122747 |
|  Nine Entertainment Co. Holdings, Ltd. | 172659 | 216003 |
|  Novonix, Ltd. (a) | 53945 | 53854 |
|  NRW Holdings, Ltd. | 134771 | 257271 |
|  Nufarm, Ltd. | 102823 | 426548 |
|  Objective Corp., Ltd. | 2117 | 18888 |
|  OceanaGold Corp. (a) | 212111 | 404170 |
|  OFX Group, Ltd. (a) | 99303 | 161202 |
|  OM Holdings, Ltd. | 21506 | 10382 |
|  Omni Bridgeway, Ltd. (a) | 75128 | 184464 |
|  oOh!media, Ltd. | 130777 | 114304 |
|  Orora, Ltd. | 248793 | 489172 |
|  Pacific Current Group, Ltd. | 12733 | 63369 |
|  Pacific Smiles Group, Ltd. (a) | 13431 | 13977 |
|  Pact Group Holdings, Ltd. | 50886 | 35054 |
|  Paladin Energy, Ltd. (a) | 599035 | 276347 |
|  Panoramic Resources, Ltd. (a) | 200216 | 23820 |
|  Pantoro, Ltd. (a) | 111337 | 7270 |
|  Peet, Ltd. | 88199 | 67624 |
| **Australia—(Continued)** |  |  |
|  Pendal Group, Ltd. | 88324 | 300920 |
|  PeopleIN, Ltd. | 8684 | 18792 |
|  Perenti, Ltd. (a) | 204417 | 182211 |
|  Perpetual, Ltd. | 19757 | 329094 |
|  Perseus Mining, Ltd. | 340886 | 478421 |
|  PEXA Group, Ltd. (a) | 21038 | 169260 |
|  Pinnacle Investment Management Group, Ltd. | 20949 | 124229 |
|  Platinum Asset Management, Ltd. | 124443 | 151550 |
|  PointsBet Holdings, Ltd. (a) | 9123 | 9203 |
|  PolyNovo, Ltd. (a) | 137979 | 189535 |
|  Poseidon Nickel, Ltd. (a) | 238025 | 6475 |
|  Praemium, Ltd. | 98955 | 53841 |
|  Premier Investments, Ltd. | 17241 | 291148 |
|  Propel Funeral Partners, Ltd. | 8061 | 23758 |
|  PSC Insurance Group, Ltd. | 21994 | 75038 |
|  PWR Holdings, Ltd. | 16772 | 121610 |
|  PYC Therapeutics, Ltd. (a) | 83719 | 3922 |
|  QANTM Intellectual Property, Ltd. | 14173 | 8782 |
|  Ramelius Resources, Ltd. | 232740 | 145324 |
|  Reckon, Ltd. | 36898 | 15028 |
|  Red 5, Ltd. (a) | 550662 | 75954 |
|  Redbubble, Ltd. (a) | 43202 | 15272 |
|  Regis Healthcare, Ltd. | 26109 | 33372 |
|  Regis Resources, Ltd. | 236656 | 327631 |
|  Reject Shop, Ltd. (The) (a) | 12421 | 35688 |
|  Resolute Mining, Ltd. (a) | 722882 | 95731 |
|  Retail Food Group, Ltd. (a) | 190378 | 10367 |
|  Ridley Corp., Ltd. | 113689 | 152908 |
|  RPMGlobal Holdings, Ltd. (a) | 32785 | 38877 |
|  Sandfire Resources, Ltd. | 134756 | 494146 |
|  Select Harvests, Ltd. | 44322 | 117524 |
|  Servcorp, Ltd. | 21215 | 46451 |
|  Service Stream, Ltd. | 154571 | 71487 |
|  Seven West Media, Ltd. (a) | 345244 | 92027 |
|  SG Fleet Group, Ltd. | 27529 | 34293 |
|  Shaver Shop Group, Ltd. | 18090 | 14308 |
|  Sierra Rutile Holdings, Ltd. (a) | 66772 | 10187 |
|  Sigma Healthcare, Ltd. | 347766 | 144442 |
|  Silver Lake Resources, Ltd. (a) | 202549 | 160983 |
|  Silver Mines, Ltd. (a) | 74163 | 10084 |
|  SmartGroup Corp., Ltd. | 33331 | 115626 |
|  SolGold plc (a) | 36239 | 7010 |
|  SOLVAR, Ltd. | 50348 | 62656 |
|  Southern Cross Media Group, Ltd. | 76997 | 55806 |
|  SRG Global, Ltd. | 9380 | 4404 |
|  St. Barbara, Ltd. (a) | 208312 | 108148 |
|  Star Entertainment Group, Ltd. (The) (a) | 216764 | 260994 |
|  Strandline Resources, Ltd. (a) | 38046 | 9488 |
|  Strike Energy, Ltd. (a) | 198861 | 42537 |
|  Sunland Group, Ltd. | 40150 | 48248 |
|  Super Retail Group, Ltd. | 52166 | 379868 |
|  Superloop, Ltd. (a) | 59252 | 29107 |
|  Symbio Holdings, Ltd. | 4332 | 4548 |
|  Syrah Resources, Ltd. (a) | 163680 | 224940 |
|  Tabcorp Holdings, Ltd. | 250846 | 183622 |
|  Technology One, Ltd. | 46975 | 419594 |
|  Temple & Webster Group, Ltd. (a) | 14313 | 44851 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Australia—(Continued)** | | | |
|  Ten Sixty Four, Ltd. | 60972 | $| 26464 |
|  Terracom, Ltd. | 54002 |  | 34072 |
|  Tietto Minerals, Ltd. (a) | 61032 |  | 29264 |
|  Tribune Resources, Ltd. | 2377 |  | 6520 |
|  Tyro Payments, Ltd. (a) | 54611 |  | 51497 |
|  United Malt Group, Ltd. | 95694 |  | 225841 |
|  Virgin Australia International Holding, Ltd. (a) (b) (c) | 968773 |  | 0 |
|  Vista Group International, Ltd. (a) | 33201 |  | 32091 |
|  Viva Energy Group, Ltd. (144A) | 117099 |  | 217471 |
|  Vulcan Energy Resources, Ltd. (a) | 8384 |  | 36078 |
|  Webjet, Ltd. (a) | 84765 |  | 356231 |
|  West African Resources, Ltd. (a) | 238805 |  | 190639 |
|  Westgold Resources, Ltd. (a) | 123130 |  | 72380 |
|  Whitehaven Coal, Ltd. | 128473 |  | 823672 |
|  Zip Co., Ltd. (a) | 37474 |  | 12981 |
|  |  |  | 32118780 |
| **Austria—1.6%** | **Austria—1.6%** | **Austria—1.6%** | **Austria—1.6%** |
|  Agrana Beteiligungs AG | 4073 |  | 65154 |
|  ams-OSRAM AG (a) | 58625 |  | 431409 |
|  Andritz AG | 20093 |  | 1148561 |
|  Austria Technologie & Systemtechnik AG (d) | 10578 |  | 363452 |
|  BAWAG Group AG (144A) (a) | 19428 |  | 1033000 |
|  CA Immobilien Anlagen AG (a) | 8328 |  | 252078 |
|  DO & Co. AG (a) (d) | 2435 |  | 231375 |
|  EVN AG | 9993 |  | 180379 |
|  FACC AG (a) (d) | 6291 |  | 38108 |
|  Flughafen Wien AG (a) | 900 |  | 31792 |
|  Kapsch TrafficCom AG (a) (d) | 1870 |  | 22581 |
|  Kontron AG (d) | 15588 |  | 254754 |
|  Lenzing AG (d) | 3209 |  | 188621 |
|  Mayr Melnhof Karton AG (d) | 2669 |  | 431172 |
|  Oberbank AG | 198 |  | 21724 |
|  Oesterreichische Post AG (d) | 5869 |  | 184324 |
|  Palfinger AG | 5204 |  | 132067 |
|  POLYTEC Holding AG (d) | 6228 |  | 30600 |
|  Porr AG | 2768 |  | 34853 |
|  Raiffeisen Bank International AG (a) | 29029 |  | 476979 |
|  Rosenbauer International AG (d) | 1414 |  | 45568 |
|  Schoeller-Bleckmann Oilfield Equipment AG | 3509 |  | 219394 |
|  Semperit AG Holding | 4892 |  | 103665 |
|  Strabag Se | 2729 |  | 114292 |
|  Telekom Austria AG (a) | 40133 |  | 248070 |
|  UBM Development AG | 1459 |  | 35561 |
|  UNIQA Insurance Group AG (d) | 32519 |  | 243702 |
|  Vienna Insurance Group AG Wiener Versicherung Gruppe | 9511 |  | 227147 |
|  voestalpine AG | 26834 |  | 708304 |
|  Wienerberger AG | 33409 |  | 808708 |
|  Zumtobel Group AG | 8536 |  | 62143 |
|  |  |  | 8369537 |
| **Belgium—1.6%** | **Belgium—1.6%** | **Belgium—1.6%** | **Belgium—1.6%** |
|  Ackermans & van Haaren NV | 7319 |  | 1253769 |
|  AGFA-Gevaert NV (a) | 50218 |  | 143692 |
|  Atenor | 1361 |  | 70565 |
| **Belgium—(Continued)** | **Belgium—(Continued)** | **Belgium—(Continued)** | **Belgium—(Continued)** |
|  Barco NV | 21013 |  | 521091 |
|  Bekaert S.A. | 10571 |  | 410003 |
|  Biocartis Group NV (144A) (a) (d) | 16248 |  | 9211 |
|  bpost S.A. | 18928 |  | 97536 |
|  Cie d'Entreprises CFE (a) | 2249 |  | 22986 |
|  D'ieteren Group | 619 |  | 119170 |
|  Deceuninck NV | 27313 |  | 71670 |
|  Deme Group (a) | 2249 |  | 299251 |
|  Econocom Group S.A. | 39556 |  | 120847 |
|  Etablissements Franz Colruyt NV (d) | 9305 |  | 212691 |
|  Euronav NV (a) | 53441 |  | 900462 |
|  EVS Broadcast Equipment S.A. | 4312 |  | 102567 |
|  Exmar NV | 10339 |  | 87596 |
|  Fagron | 14385 |  | 204634 |
|  Galapagos NV (a) | 9086 |  | 403019 |
|  GIMV NV | 4984 |  | 234952 |
|  Greenyard NV (a) | 5819 |  | 41810 |
|  Immobel S.A. (d) | 1276 |  | 61455 |
|  Ion Beam Applications | 6507 |  | 108424 |
|  Jensen-Group NV | 1035 |  | 29376 |
|  Kinepolis Group NV (a) | 4307 |  | 179376 |
|  Lotus Bakeries NV | 92 |  | 623396 |
|  MDxHealth S.A. (a) (d) | 8434 |  | 5410 |
|  Melexis NV | 5164 |  | 449675 |
|  Mithra Pharmaceuticals S.A. (a) (d) | 506 |  | 1846 |
|  Ontex Group NV (a) | 16729 |  | 111710 |
|  Orange Belgium S.A. (a) | 5071 |  | 93754 |
|  Picanol | 467 |  | 39695 |
|  Proximus SADP | 28286 |  | 272363 |
|  Recticel S.A. | 15533 |  | 259283 |
|  Roularta Media Group NV | 1629 |  | 30919 |
|  Shurgard Self Storage S.A. (d) | 5118 |  | 235257 |
|  Sipef NV | 1958 |  | 123580 |
|  Telenet Group Holding NV | 8880 |  | 144699 |
|  TER Beke S.A. | 148 |  | 13406 |
|  Tessenderlo Group S.A. (a) | 5516 |  | 197186 |
|  Van de Velde NV | 1970 |  | 63678 |
|  VGP NV (d) | 1667 |  | 139387 |
|  Viohalco S.A. | 26609 |  | 114589 |
|  X-Fab Silicon Foundries SE (144A) (a) | 14349 |  | 101518 |
|  |  |  | 8727504 |
| **Cambodia—0.0%** | **Cambodia—0.0%** | **Cambodia—0.0%** | **Cambodia—0.0%** |
|  NagaCorp, Ltd. (a) (d) | 252367 |  | 222481 |
| **Canada—11.8%** | **Canada—11.8%** | **Canada—11.8%** | **Canada—11.8%** |
|  5N Plus, Inc. (a) | 33732 |  | 72496 |
|  Absolute Software Corp. | 1711 |  | 17868 |
|  Acadian Timber Corp. (d) | 3800 |  | 41999 |
|  Advantage Energy, Ltd. (a) | 78925 |  | 552009 |
|  Aecon Group, Inc. (d) | 19646 |  | 132182 |
|  AG Growth International, Inc. | 5820 |  | 186335 |
|  AGF Management, Ltd. - Class B | 19644 |  | 102572 |
|  Aimia, Inc. (a) (d) | 24635 |  | 67137 |
|  AirBoss of America Corp. (d) | 3761 |  | 20666 |
|  Alamos Gold, Inc. - Class A | 115698 |  | 1169797 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Canada—(Continued)** | **Canada—(Continued)** | **Canada—(Continued)** |
|  Alaris Equity Partners Income | 8510 | $100813 |
|  Algoma Central Corp. (d) | 6110 | 82219 |
|  Altius Minerals Corp. (d) | 12660 | 207665 |
|  Altus Group, Ltd. (d) | 12988 | 518369 |
|  Americas Gold And Silver Corp. (a) (d) | 4400 | 2502 |
|  Amerigo Resources, Ltd. | 35000 | 34121 |
|  Andlauer Healthcare Group, Inc. | 2269 | 79348 |
|  Andrew Peller, Ltd. - Class A (d) | 11417 | 42076 |
|  Aritzia, Inc. (a) | 24317 | 850377 |
|  Ascot Resources, Ltd. (a) (d) | 16500 | 6337 |
|  Atco, Ltd. - Class I | 19446 | 608657 |
|  Athabasca Oil Corp. (a) (d) | 144824 | 257774 |
|  ATS Corp. (a) | 25733 | 799928 |
|  Aurora Cannabis, Inc. (a) | 8729 | 8053 |
|  AutoCanada, Inc. (a) | 8428 | 145094 |
|  B2Gold Corp. | 265768 | 948036 |
|  Badger Infrastructure Solutions, Ltd. | 11262 | 221747 |
|  Ballard Power Systems, Inc. (a) (d) | 37678 | 180478 |
|  Baytex Energy Corp. (a) | 136747 | 614049 |
|  Birchcliff Energy, Ltd. (d) | 80388 | 559866 |
|  Bird Construction, Inc. | 18612 | 111617 |
|  Black Diamond Group, Ltd. | 19812 | 70674 |
|  BlackBerry, Ltd. (a) | 98259 | 320324 |
|  BMTC Group, Inc. | 5387 | 46549 |
|  Bombardier, Inc. - Class A (a) (d) | 584 | 22825 |
|  Bombardier, Inc. - Class B (a) | 20573 | 794203 |
|  Boralex, Inc. - Class A | 25118 | 742409 |
|  Boyd Group Services, Inc. | 5003 | 772842 |
|  Bridgemarq Real Estate Services (d) | 3500 | 33191 |
|  Brookfield Infrastructure Corp. - Class A | 6937 | 269846 |
|  Calian Group, Ltd. | 2846 | 140387 |
|  Canaccord Genuity Group, Inc. | 30012 | 185968 |
|  Canacol Energy, Ltd. (d) | 40661 | 58859 |
|  Canada Goose Holdings, Inc. (a) (d) | 9656 | 171973 |
|  Canada Goose Holdings, Inc. (a) | 4869 | 86592 |
|  Canadian Western Bank (d) | 25085 | 445750 |
|  Canfor Corp. (a) | 20141 | 316990 |
|  Canfor Pulp Products, Inc. (a) | 11097 | 33930 |
|  Capital Power Corp. (d) | 32632 | 1116574 |
|  Capstone Mining Corp. (a) | 122839 | 448172 |
|  Cardinal Energy, Ltd. | 32459 | 182672 |
|  Cascades, Inc. | 28626 | 178860 |
|  Celestica, Inc. (a) | 35793 | 403398 |
|  Centerra Gold, Inc. | 66685 | 345245 |
|  CES Energy Solutions Corp. | 90181 | 183825 |
|  CI Financial Corp. | 51912 | 517970 |
|  Clairvest Group, Inc. | 200 | 10502 |
|  Cogeco Communications, Inc. | 3980 | 225720 |
|  Cogeco, Inc. | 2109 | 99017 |
|  Colliers International Group, Inc. | 258 | 23746 |
|  Computer Modelling Group, Ltd. | 28920 | 124523 |
|  Copper Mountain Mining Corp. (a) (d) | 63622 | 80350 |
|  Corby Spirit and Wine, Ltd. (d) | 3957 | 47841 |
|  Corus Entertainment, Inc. - B Shares | 69390 | 110696 |
|  Crescent Point Energy Corp. | 149673 | 1068767 |
|  Crew Energy, Inc. (a) | 54370 | 226073 |
| **Canada—(Continued)** | **Canada—(Continued)** | **Canada—(Continued)** |
|  Cronos Group, Inc. (a) | 15221 | 38661 |
|  Denison Mines Corp. (a) (d) | 231048 | 264494 |
|  Dexterra Group, Inc. (d) | 11442 | 46731 |
|  Doman Building Materials Group, Ltd. | 19304 | 81978 |
|  Dorel Industries, Inc. - Class B | 8626 | 33128 |
|  DREAM Unlimited Corp. - Class A | 8735 | 164055 |
|  Dundee Precious Metals, Inc. | 45872 | 220551 |
|  Dye & Durham, Ltd. | 1009 | 12229 |
|  E-L Financial Corp., Ltd. | 677 | 441000 |
|  ECN Capital Corp. | 78878 | 161950 |
|  Eldorado Gold Corp. (a) | 51016 | 425385 |
|  Element Fleet Management Corp. (d) | 101554 | 1383805 |
|  Endeavour Silver Corp. (a) (d) | 34348 | 111111 |
|  Enerflex, Ltd. | 29289 | 184733 |
|  Enerplus Corp. | 66469 | 1173256 |
|  Enghouse Systems, Ltd. | 12678 | 336800 |
|  Ensign Energy Services, Inc. (a) | 51526 | 129766 |
|  EQB, Inc. (d) | 8098 | 339291 |
|  Equinox Gold Corp. (a) (d) | 28628 | 93665 |
|  Equinox Gold Corp. (a) | 27871 | 91417 |
|  ERO Copper Corp. (a) (d) | 13490 | 185712 |
|  Evertz Technologies, Ltd. (d) | 9349 | 88173 |
|  Exchange Income Corp. (d) | 4751 | 184671 |
|  Exco Technologies, Ltd. | 7732 | 43971 |
|  Extendicare, Inc. (d) | 29162 | 141287 |
|  Fiera Capital Corp. (d) | 22157 | 142040 |
|  Finning International, Inc. | 39332 | 977781 |
|  Firm Capital Mortgage Investment Corp. (d) | 9574 | 75588 |
|  First Majestic Silver Corp. | 45160 | 376222 |
|  First Majestic Silver Corp. (d) | 9430 | 78646 |
|  First Mining Gold Corp. (a) | 50000 | 7386 |
|  First National Financial Corp. | 4907 | 131989 |
|  Fission Uranium Corp. (a) (d) | 114725 | 67784 |
|  Fortuna Silver Mines, Inc. (a) | 79418 | 298551 |
|  Freehold Royalties, Ltd. | 35012 | 409335 |
|  Galiano Gold, Inc. (a) (d) | 23027 | 12245 |
|  Gamehost, Inc. | 4952 | 29844 |
|  GDI Integrated Facility Services, Inc. (a) | 3200 | 107533 |
|  Gibson Energy, Inc. (d) | 42525 | 742460 |
|  Goeasy, Ltd. | 3895 | 306221 |
|  GoGold Resources, Inc. (a) | 28473 | 45633 |
|  GoldMoney, Inc. (a) (d) | 11000 | 13730 |
|  Gran Tierra Energy, Inc. (a) (d) | 112213 | 111882 |
|  Guardian Capital Group, Ltd. - Class A | 5600 | 160597 |
|  Hanfeng Evergreen, Inc. (a) (b) (c) | 12100 | 0 |
|  Headwater Exploration, Inc. (d) | 35296 | 154322 |
|  Heroux-Devtek, Inc. (a) | 12653 | 122839 |
|  High Liner Foods, Inc. (d) | 6007 | 61090 |
|  Home Capital Group, Inc. (d) | 14784 | 464921 |
|  HudBay Minerals, Inc. | 64983 | 328275 |
|  IAMGOLD Corp. (a) | 124055 | 318020 |
|  Imperial Metals Corp. (a) (d) | 19966 | 26690 |
|  Information Services Corp. (d) | 2900 | 51767 |
|  Innergex Renewable Energy, Inc. (d) | 35108 | 420051 |
|  InPlay Oil Corp. | 5900 | 13203 |
|  Interfor Corp. (a) | 23632 | 366523 |
|  International Petroleum Corp. (a) | 15069 | 169766 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Canada—(Continued)** | **Canada—(Continued)** | **Canada—(Continued)** |
|  International Tower Hill Mines, Ltd. (a) | 21604 | $9254 |
|  Invesque, Inc. (a) | 9800 | 8918 |
|  Jamieson Wellness, Inc. (144A) (d) | 12957 | 335791 |
|  Journey Energy, Inc. (a) | 100 | 403 |
|  K-Bro Linen, Inc. (d) | 3219 | 64903 |
|  K92 Mining, Inc. (a) | 27548 | 156051 |
|  Karora Resources, Inc. (a) | 28791 | 98876 |
|  Kelt Exploration, Ltd. (a) | 58951 | 218127 |
|  Keyera Corp. | 5690 | 124348 |
|  Kinaxis, Inc. (a) | 2082 | 233587 |
|  Kingsway Financial Services, Inc. (a) | 8765 | 69506 |
|  Knight Therapeutics, Inc. (a) | 36815 | 140843 |
|  KP Tissue, Inc. (d) | 1400 | 10484 |
|  Labrador Iron Ore Royalty Corp. (d) | 17800 | 441451 |
|  Largo, Inc. (a) (d) | 8317 | 45086 |
|  Lassonde Industries, Inc. - Class A | 900 | 73968 |
|  Laurentian Bank of Canada (d) | 12879 | 307232 |
|  Leon's Furniture, Ltd. | 9639 | 122374 |
|  Lightspeed Commerce, Inc. (a) (d) | 16437 | 235049 |
|  Lightstream Resources, Ltd. (a) (b) (c) | 108373 | 0 |
|  Linamar Corp. | 12044 | 545271 |
|  Logistec Corp. - Class B | 600 | 18377 |
|  Lucara Diamond Corp. (a) (d) | 110136 | 40671 |
|  Lundin Gold, Inc. | 11400 | 111390 |
|  MAG Silver Corp. (a) | 8829 | 137997 |
|  Magellan Aerospace Corp. (d) | 5794 | 42792 |
|  Mainstreet Equity Corp. (a) (d) | 2261 | 197044 |
|  Major Drilling Group International, Inc. (a) | 28577 | 222031 |
|  Manitok Energy, Inc. (a) (b) (c) | 122 | 0 |
|  Maple Leaf Foods, Inc. (d) | 26200 | 473109 |
|  Martinrea International, Inc. | 25209 | 209641 |
|  Maverix Metals, Inc. | 7686 | 35970 |
|  Maxim Power Corp. (a) | 2800 | 7031 |
|  MDF Commerce, Inc. (a) (d) | 4176 | 11103 |
|  Medical Facilities Corp. (d) | 12861 | 76368 |
|  MEG Energy Corp. (a) | 47994 | 668159 |
|  Melcor Developments, Ltd. | 3120 | 24541 |
|  Methanex Corp. | 1300 | 49216 |
|  Methanex Corp. (d) | 14040 | 531554 |
|  Morguard Corp. | 1400 | 116281 |
|  Mountain Province Diamonds, Inc. (a) | 1600 | 614 |
|  MTY Food Group, Inc. | 6320 | 266383 |
|  Mullen Group, Ltd. (d) | 29854 | 320809 |
|  Neo Performance Materials, Inc. | 4300 | 30487 |
|  New Gold, Inc. (a) | 172247 | 169194 |
|  NFI Group, Inc. (d) | 13975 | 98258 |
|  North American Construction Group, Ltd. | 10441 | 139419 |
|  North West Co., Inc. (The) | 15571 | 409055 |
|  NuVista Energy, Ltd. (a) | 59117 | 544889 |
|  Obsidian Energy, Ltd. (a) | 5354 | 35551 |
|  Onex Corp. | 3425 | 165154 |
|  Organigram Holdings, Inc. (a) | 36998 | 29598 |
|  Orla Mining, Ltd. (a) (d) | 17291 | 69856 |
|  Osisko Gold Royalties, Ltd. | 42516 | 512539 |
|  Osisko Mining, Inc. (a) | 54809 | 141678 |
|  Pan American Silver Corp. | 28400 | 464034 |
|  Paramount Resources, Ltd. - Class A | 19290 | 408025 |
| **Canada—(Continued)** | **Canada—(Continued)** | **Canada—(Continued)** |
|  Parex Resources, Inc. | 39859 | 593175 |
|  Park Lawn Corp. | 9456 | 180530 |
|  Parkland Corp. | 42466 | 931806 |
|  Pason Systems, Inc. | 24116 | 283906 |
|  Peyto Exploration & Development Corp. | 67791 | 694432 |
|  PHX Energy Services Corp. | 12350 | 70871 |
|  Pizza Pizza Royalty Corp. | 6998 | 70497 |
|  Polaris Renewable Energy, Inc. (d) | 5300 | 55075 |
|  Pollard Banknote, Ltd. | 2690 | 37986 |
|  PolyMet Mining Corp. (a) | 3835 | 10253 |
|  PrairieSky Royalty, Ltd. | 56452 | 904733 |
|  Precision Drilling Corp. (a) | 4794 | 367198 |
|  Premium Brands Holdings Corp. (d) | 11855 | 720406 |
|  Primo Water Corp. | 45705 | 709541 |
|  Pulse Seismic, Inc. (d) | 13500 | 18146 |
|  Quarterhill, Inc. (d) | 44645 | 52097 |
|  Questerre Energy Corp. - Class A (a) (d) | 83569 | 12344 |
|  Real Matters, Inc. (a) (d) | 25451 | 78571 |
|  RF Capital Group ,Inc. (a) (d) | 1730 | 14694 |
|  Richelieu Hardware, Ltd. | 16390 | 438317 |
|  Rogers Sugar, Inc. | 35106 | 147528 |
|  Russel Metals, Inc. | 23322 | 495722 |
|  Sabina Gold & Silver Corp. (a) | 64606 | 63461 |
|  Sandstorm Gold, Ltd. | 58462 | 307422 |
|  Savaria Corp. (d) | 10600 | 109523 |
|  Seabridge Gold, Inc. (a) | 14263 | 179429 |
|  Secure Energy Services, Inc. | 69364 | 360140 |
|  Shawcor, Ltd. (a) | 21791 | 221129 |
|  Sienna Senior Living, Inc. | 22176 | 178522 |
|  Sierra Wireless, Inc. (a) | 12710 | 368158 |
|  SilverCrest Metals, Inc. (a) (d) | 11918 | 71366 |
|  Sleep Country Canada Holdings, Inc. (144A) | 12404 | 210520 |
|  SNC-Lavalin Group, Inc. (d) | 45239 | 797195 |
|  SNDL, Inc. (a) | 11204 | 23416 |
|  Spin Master Corp. (144A) (d) | 8748 | 215276 |
|  Sprott, Inc. | 6042 | 200984 |
|  SSR Mining, Inc. | 53993 | 844986 |
|  Stantec, Inc. | 3498 | 167615 |
|  Stelco Holdings, Inc. | 9844 | 322002 |
|  Stella-Jones, Inc. | 16794 | 601806 |
|  Steppe Gold, Ltd. (a) | 6300 | 5211 |
|  SunOpta, Inc. (a) | 26392 | 221818 |
|  Superior Plus Corp. (d) | 54086 | 448586 |
|  Surge Energy, Inc. (d) | 9000 | 60554 |
|  Tamarack Valley Energy, Ltd. (d) | 85898 | 282943 |
|  Taseko Mines, Ltd. (a) (d) | 108786 | 159081 |
|  TECSYS, Inc. | 172 | 3370 |
|  TeraGo, Inc. (a) (d) | 4100 | 8781 |
|  TerraVest Industries, Inc. | 1600 | 32603 |
|  Tidewater Midstream and Infrastructure, Ltd. (d) | 79200 | 59078 |
|  Timbercreek Financial Corp. (d) | 29251 | 153600 |
|  Torex Gold Resources, Inc. (a) | 27594 | 316903 |
|  Total Energy Services, Inc. (d) | 17786 | 113100 |
|  TransAlta Corp. (d) | 83943 | 750775 |
|  TransAlta Renewables, Inc. (d) | 28608 | 237696 |
|  Transcontinental, Inc. - Class A | 21120 | 238341 |
|  Trevali Mining Corp. (a) (b) (c) (d) | 9060 | 1029 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Canada—(Continued)** | **Canada—(Continued)** | **Canada—(Continued)** | **Canada—(Continued)** |
|  Trican Well Service, Ltd. (a) (d) | 92913 | $| 251153 |
|  Tricon Residential, Inc. | 63428 |  | 489061 |
|  Triple Flag Precious Metals Corp. (d) | 1100 |  | 15233 |
|  Trisura Group, Ltd. (a) (d) | 10823 |  | 362019 |
|  Uni-Select, Inc. (a) | 13271 |  | 419889 |
|  Vecima Networks, Inc. | 2500 |  | 35801 |
|  Vermilion Energy, Inc. (d) | 44554 |  | 788710 |
|  VersaBank (d) | 2000 |  | 14934 |
|  Wajax Corp. | 7885 |  | 114897 |
|  Waterloo Brewing, Ltd. | 2600 |  | 7623 |
|  Wesdome Gold Mines, Ltd. (a) | 54507 |  | 301117 |
|  Western Forest Products, Inc. | 145247 |  | 124436 |
|  Westshore Terminals Investment Corp. | 17388 |  | 288045 |
|  Whitecap Resources, Inc. (d) | 90730 |  | 719675 |
|  WildBrain, Ltd. (a) (d) | 49540 |  | 114154 |
|  Winpak, Ltd. | 9852 |  | 306038 |
|  Yamana Gold, Inc. | 224022 |  | 1243985 |
|  Yellow Pages, Ltd. (d) | 4891 |  | 49199 |
|  Zenith Capital Corp. (b) (c) | 12830 |  | 1796 |
|  |  |  | 62512556 |
| **China—0.1%** | **China—0.1%** | **China—0.1%** | **China—0.1%** |
|  AustAsia Group, Ltd. (a) | 19734 |  | 16105 |
|  Bund Center Investment, Ltd. | 107700 |  | 38194 |
|  China Gold International Resources Corp., Ltd. (d) | 79013 |  | 228169 |
|  China Sunsine Chemical Holdings, Ltd. | 70000 |  | 22158 |
|  CITIC Telecom International Holdings, Ltd. | 467000 |  | 158257 |
|  First Sponsor Group, Ltd. | 9490 |  | 8998 |
|  Fountain SET Holdings, Ltd. | 280000 |  | 32572 |
|  GDH Guangnan Holdings, Ltd. | 264000 |  | 20920 |
|  Goodbaby International Holdings, Ltd. (a) | 179000 |  | 14357 |
|  Guotai Junan International Holdings, Ltd. | 806600 |  | 74419 |
|  Neo-Neon Holdings, Ltd. (a) | 322500 |  | 18180 |
|  TI Fluid Systems plc (144A) | 24645 |  | 39586 |
|  |  |  | 671915 |
| **Colombia—0.0%** | **Colombia—0.0%** | **Colombia—0.0%** | **Colombia—0.0%** |
|  Frontera Energy Corp. (a) | 10147 |  | 91952 |
| **Denmark—2.5%** | **Denmark—2.5%** | **Denmark—2.5%** | **Denmark—2.5%** |
|  ALK Abello A/S (a) | 35460 |  | 491888 |
|  Alm Brand A/S | 262490 |  | 426034 |
|  Bang & Olufsen A/S (a) (d) | 30627 |  | 36058 |
|  Bavarian Nordic A/S (a) | 20257 |  | 620604 |
|  Better Collective A/S (a) | 3925 |  | 48011 |
|  Brodrene Hartmann A/S (a) | 653 |  | 27762 |
|  cBrain A/S (d) | 939 |  | 21367 |
|  Chemometec A/S (a) | 3943 |  | 393328 |
|  Columbus A/S | 20865 |  | 18902 |
|  D/S Norden A/S | 8013 |  | 480734 |
|  DFDS A/S | 10724 |  | 396845 |
|  FLSmidth & Co. A/S | 12789 |  | 465023 |
|  H Lundbeck A/S | 71780 |  | 268935 |
|  H+H International A/S - Class B (a) | 5958 |  | 88151 |
|  Harboes Bryggeri A/S - Class B (a) | 1454 |  | 13587 |
|  ISS A/S (a) | 36366 |  | 768849 |
| **Denmark—(Continued)** | **Denmark—(Continued)** | **Denmark—(Continued)** | **Denmark—(Continued)** |
|  Jeudan A/S | 2360 |  | 81465 |
|  Jyske Bank A/S (a) | 16358 |  | 1063463 |
|  Matas A/S | 10988 |  | 110145 |
|  Netcompany Group A/S (144A) (a) | 7774 |  | 328169 |
|  Nilfisk Holding A/S (a) | 7976 |  | 167276 |
|  NKT A/S (a) | 9347 |  | 528264 |
|  NNIT A/S (144A) (a) | 2656 |  | 25062 |
|  North Media A/S | 679 |  | 5581 |
|  NTG Nordic Transport Group A/S (a) (d) | 2706 |  | 93219 |
|  Parken Sport & Entertainment A/S (a) | 2351 |  | 24656 |
|  PER Aarsleff Holding A/S | 5304 |  | 200105 |
|  Ringkjoebing Landbobank A/S | 8462 |  | 1155297 |
|  Royal Unibrew A/S | 13170 |  | 940747 |
|  RTX A/S (a) (d) | 2486 |  | 41920 |
|  Scandinavian Tobacco Group A/S - Class A (144A) | 18965 |  | 332637 |
|  Schouw & Co. A/S | 3973 |  | 299107 |
|  SimCorp A/S | 10560 |  | 721676 |
|  Solar A/S - B Shares | 1807 |  | 161170 |
|  SP Group A/S | 716 |  | 26384 |
|  Spar Nord Bank A/S | 26418 |  | 405124 |
|  Sparekassen Sjaelland-Fyn A/S | 1358 |  | 37856 |
|  Sydbank A/S | 17865 |  | 750741 |
|  TCM Group A/S | 502 |  | 5267 |
|  Tivoli A/S (a) | 844 |  | 92008 |
|  Topdanmark A/S | 11821 |  | 620104 |
|  UIE plc | 6060 |  | 155880 |
|  Vestjysk Bank A/S (a) (d) | 23730 |  | 10756 |
|  Zealand Pharma A/S (a) | 8489 |  | 245116 |
|  |  |  | 13195273 |
| **Faeroe Islands—0.0%** | **Faeroe Islands—0.0%** | **Faeroe Islands—0.0%** | **Faeroe Islands—0.0%** |
|  BankNordik P/F | 1109 |  | 21714 |
| **Finland—2.3%** | **Finland—2.3%** | **Finland—2.3%** | **Finland—2.3%** |
|  Aktia Bank Oyj | 15788 |  | 172604 |
|  Alma Media Oyj | 11899 |  | 119389 |
|  Anora Group Oyj | 1398 |  | 11022 |
|  Apetit Oyj | 1205 |  | 13152 |
|  Aspo Oyj | 7386 |  | 64817 |
|  Atria Oyj | 3290 |  | 32645 |
|  Bittium Oyj (d) | 8034 |  | 34231 |
|  Cargotec Oyj - B Shares | 10991 |  | 488021 |
|  Caverion Oyj | 25551 |  | 189530 |
|  Citycon Oyj (a) | 21486 |  | 143979 |
|  Digia Oyj | 6625 |  | 40484 |
|  Enento Group Oyj (144A) (a) | 3892 |  | 89222 |
|  eQ Oyj | 382 |  | 10407 |
|  F-Secure Oyj (a) | 26373 |  | 80065 |
|  Finnair Oyj (a) (d) | 272008 |  | 112994 |
|  Fiskars Oyj Abp | 6971 |  | 114721 |
|  Harvia Oyj (d) | 2955 |  | 56124 |
|  HKScan Oyj - A Shares | 6704 |  | 6235 |
|  Huhtamaki Oyj | 26983 |  | 923567 |
|  Ilkka Oyj | 5725 |  | 22059 |
|  Kamux Corp. (d) | 4328 |  | 20129 |
|  Kemira Oyj | 28960 |  | 445370 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Finland—(Continued)** | **Finland—(Continued)** | **Finland—(Continued)** | **Finland—(Continued)** |
|  Kojamo Oyj | 26601 | $| 394108 |
|  Konecranes Oyj | 16247 |  | 502127 |
|  Lassila & Tikanoja Oyj | 8464 |  | 96531 |
|  Marimekko Oyj | 1890 |  | 17738 |
|  Metsa Board Oyj - Class B | 47644 |  | 446683 |
|  Musti Group Oyj | 5196 |  | 86956 |
|  Nokian Renkaat Oyj | 35666 |  | 366984 |
|  Olvi Oyj - A Shares | 5028 |  | 178634 |
|  Oriola Oyj - A Shares | 4196 |  | 8284 |
|  Oriola-KD Oyj - B Shares | 38525 |  | 71735 |
|  Orion Oyj - Class A | 7619 |  | 417729 |
|  Orion Oyj - Class B | 26553 |  | 1455455 |
|  Outokumpu Oyj | 95330 |  | 482078 |
|  Ponsse Oyj | 3208 |  | 86998 |
|  QT Group Oyj (a) (d) | 2738 |  | 131242 |
|  Raisio Oyj - V Shares | 35039 |  | 93337 |
|  Rapala VMC Oyj | 8902 |  | 47714 |
|  Revenio Group Oyj | 5309 |  | 219810 |
|  Sanoma Oyj | 25537 |  | 268499 |
|  Stockmann Oyj Abp - B Shares (a) | 3752 |  | 7906 |
|  Talenom Oyj | 2085 |  | 20316 |
|  Teleste Oyj | 2149 |  | 8136 |
|  Terveystalo Oyj (144A) | 14772 |  | 98860 |
|  TietoEVRY Oyj | 22579 |  | 642723 |
|  Tokmanni Group Corp. | 13877 |  | 168075 |
|  Uponor Oyj | 17933 |  | 319364 |
|  Vaisala Oyj - A Shares | 5709 |  | 241118 |
|  Valmet Oyj (d) | 48366 |  | 1307346 |
|  Wartsila Oyj Abp | 87395 |  | 738527 |
|  WithSecure Oyj (a) | 26373 |  | 38795 |
|  YIT Oyj | 39980 |  | 105205 |
|  |  |  | 12259780 |
| **France—4.8%** | **France—4.8%** | **France—4.8%** | **France—4.8%** |
|  ABC Arbitrage | 2865 |  | 19782 |
|  AKWEL | 3301 |  | 61490 |
|  ALD S.A. (144A) (d) | 29256 |  | 337514 |
|  Altamir | 8530 |  | 235578 |
|  Alten S.A. | 6873 |  | 863049 |
|  Assystem S.A. (d) | 2720 |  | 118318 |
|  Atos SE (a) (d) | 2603 |  | 25283 |
|  Aubay | 2423 |  | 126546 |
|  Axway Software S.A. | 2132 |  | 37976 |
|  Bastide le Confort Medical | 1345 |  | 52982 |
|  Beneteau S.A. | 15076 |  | 228154 |
|  Bigben Interactive (d) | 4507 |  | 30819 |
|  Boiron S.A. | 1869 |  | 101450 |
|  Bonduelle SCA | 6411 |  | 92072 |
|  Burelle S.A. | 101 |  | 51199 |
|  Casino Guichard Perrachon S.A. (a) (d) | 6946 |  | 72469 |
|  Catana Group | 2793 |  | 17662 |
|  Catering International Services (d) | 541 |  | 5608 |
|  CBo Territoria | 2864 |  | 11069 |
|  Cegedim S.A. | 2295 |  | 35766 |
|  CGG S.A. (a) (d) | 189243 |  | 123217 |
|  Chargeurs S.A. | 6129 |  | 92306 |
| **France—(Continued)** | **France—(Continued)** | **France—(Continued)** | **France—(Continued)** |
|  Cie des Alpes (a) | 8244 |  | 127191 |
|  Cie Plastic Omnium S.A. | 18690 |  | 271147 |
|  Coface S.A. | 31535 |  | 411019 |
|  Derichebourg S.A. | 33761 |  | 200694 |
|  Ekinops SAS (a) (d) | 1670 |  | 15016 |
|  Electricite de Strasbourg S.A. (d) | 329 |  | 35131 |
|  Elior Group S.A. (144A) (a) (d) | 35740 |  | 126024 |
|  Elis S.A. | 49613 |  | 732915 |
|  Equasens | 582 |  | 46507 |
|  Eramet S.A. | 3022 |  | 270650 |
|  Esso S.A. Francaise (a) (d) | 974 |  | 49416 |
|  Etablissements Maurel et Prom | 12067 |  | 52010 |
|  Eurazeo S.E. | 9383 |  | 585675 |
|  Eutelsat Communications S.A. (d) | 64293 |  | 480077 |
|  Exail Technologies S.A. (a) | 395 |  | 8441 |
|  Exel Industries - A Shares | 618 |  | 35994 |
|  Faurecia SE (a) | 34097 |  | 519020 |
|  Fnac Darty S.A. (d) | 5688 |  | 210381 |
|  Gaztransport Et Technigaz S.A. | 5849 |  | 624886 |
|  GEA (d) | 165 |  | 13865 |
|  Genfit (a) | 3254 |  | 13833 |
|  GL Events (a) | 4217 |  | 73490 |
|  Groupe Crit | 1062 |  | 69351 |
|  Guerbet | 2188 |  | 39837 |
|  Guillemot Corp. (d) | 770 |  | 10562 |
|  Haulotte Group S.A. | 5337 |  | 19782 |
|  HEXAOM (d) | 1526 |  | 30369 |
|  ID Logistics Group (a) | 796 |  | 228712 |
|  Imerys S.A. | 7588 |  | 296144 |
|  Infotel S.A. | 342 |  | 20205 |
|  Interparfums S.A. | 2215 |  | 132168 |
|  IPSOS | 13160 |  | 823816 |
|  Jacquet Metals S.A. | 5978 |  | 106949 |
|  JCDecaux S.E. (a) | 13978 |  | 265834 |
|  Kaufman & Broad S.A. (d) | 5175 |  | 151962 |
|  Korian S.A. | 24916 |  | 270895 |
|  Laurent-Perrier | 1255 |  | 180260 |
|  Lectra (d) | 5454 |  | 205874 |
|  LISI | 7422 |  | 154545 |
|  LNA Sante S.A. (d) | 1534 |  | 48593 |
|  Lumibird (a) (d) | 562 |  | 9973 |
|  Maisons du Monde S.A. (144A) | 10777 |  | 136055 |
|  Manitou BF S.A. (d) | 3893 |  | 103302 |
|  Manutan International | 589 |  | 64959 |
|  Mersen S.A. | 6354 |  | 257601 |
|  Metropole Television S.A. | 8342 |  | 136929 |
|  Nacon S.A. (a) (d) | 2027 |  | 5641 |
|  Neoen S.A. (144A) | 6798 |  | 273434 |
|  Neurones | 382 |  | 16049 |
|  Nexans S.A. | 8898 |  | 807818 |
|  Nexity S.A. | 12995 |  | 362201 |
|  Nicox (a) | 1834 |  | 2202 |
|  NRJ Group | 9690 |  | 70378 |
|  Oeneo S.A. (d) | 3143 |  | 47134 |
|  OL Groupe S.A. (a) | 3273 |  | 10416 |
|  Onxeo S.A. (a) | 4566 |  | 688 |
|  Orpea S.A. (a) (d) | 4040 |  | 26937 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **France—(Continued)** | **France—(Continued)** | **France—(Continued)** | **France—(Continued)** |
|  Plastiques Du Val De Loire | 1576 | $| 5598 |
|  Prodways Group S.A. (a) | 592 |  | 2097 |
|  Quadient S.A. | 14494 |  | 214303 |
|  Rallye S.A. (a) (d) | 9791 |  | 28224 |
|  Recylex S.A. (a) (b) (c) (d) | 3335 |  | 0 |
|  Rexel S.A. (a) | 63162 |  | 1251681 |
|  Robertet S.A. (d) | 35 |  | 31385 |
|  Rothschild & Co. | 8416 |  | 336656 |
|  Rubis SCA | 22814 |  | 600705 |
|  Samse S.A. (d) | 107 |  | 21480 |
|  Savencia S.A. | 1728 |  | 108064 |
|  SCOR SE | 40311 |  | 925608 |
|  SEB S.A. | 732 |  | 61529 |
|  Seche Environnement S.A. | 1380 |  | 132655 |
|  Societe BIC S.A. | 7557 |  | 516883 |
|  Societe LDC S.A. | 211 |  | 24271 |
|  Societe pour l'Informatique Industrielle | 1887 |  | 91710 |
|  Soitec (a) | 5577 |  | 918922 |
|  Solocal Group (a) (d) | 33527 |  | 21890 |
|  Somfy S.A. | 2415 |  | 369575 |
|  Sopra Steria Group SACA | 4903 |  | 739897 |
|  SPIE S.A. | 34853 |  | 908429 |
|  STEF S.A. | 1145 |  | 111033 |
|  Sword Group (d) | 1364 |  | 57520 |
|  Synergie SE (d) | 3366 |  | 108212 |
|  Technicolor Creative Studios S.A. (a) (d) | 29526 |  | 7078 |
|  Technip Energies NV | 29181 |  | 459421 |
|  Television Francaise 1 | 16477 |  | 126140 |
|  Thermador Groupe | 2148 |  | 198641 |
|  Tikehau Capital SCA | 7508 |  | 195090 |
|  Totalenergies EP Gabon | 324 |  | 54796 |
|  Trigano S.A. | 2956 |  | 403549 |
|  UBISOFT Entertainment S.A. (a) | 18776 |  | 532956 |
|  Union Financiere de France BQE S.A. | 1257 |  | 28391 |
|  Valeo | 49990 |  | 891061 |
|  Vallourec S.A. (a) | 36022 |  | 474860 |
|  Vantiva S.A. (a) (d) | 29526 |  | 6539 |
|  Verallia S.A. (144A) | 14848 |  | 503049 |
|  Vetoquinol S.A. | 1124 |  | 105594 |
|  Vicat S.A. | 6317 |  | 158397 |
|  VIEL & Cie S.A. | 4205 |  | 26577 |
|  Vilmorin & Cie S.A. | 2655 |  | 129884 |
|  Virbac S.A. | 1006 |  | 246622 |
|  Voltalia S.A. (a) (d) | 1924 |  | 35116 |
|  Vranken-Pommery Monopole S.A. | 958 |  | 17228 |
|  Wavestone | 1052 |  | 48565 |
|  |  |  | 25269147 |
| **Georgia—0.1%** | **Georgia—0.1%** | **Georgia—0.1%** | **Georgia—0.1%** |
|  Bank of Georgia Group plc | 13336 |  | 419592 |
| **Germany—5.7%** | **Germany—5.7%** | **Germany—5.7%** | **Germany—5.7%** |
|  1&1 AG | 13083 |  | 162477 |
|  7C Solarparken AG (d) | 12415 |  | 56647 |
|  Aareal Bank AG (a) | 21487 |  | 735981 |
|  Adesso SE | 561 |  | 79270 |
| **Germany—(Continued)** | **Germany—(Continued)** | **Germany—(Continued)** | **Germany—(Continued)** |
|  AIXTRON SE | 15169 |  | 438026 |
|  All for One Steeb AG (d) | 498 |  | 24330 |
|  Allgeier SE | 2942 |  | 89268 |
|  Amadeus Fire AG | 896 |  | 110861 |
|  Atoss Software AG | 1110 |  | 164858 |
|  Aurubis AG | 10177 |  | 831836 |
|  Auto1 Group SE (144A) (a) | 3900 |  | 32479 |
|  Basler AG (d) | 3660 |  | 115646 |
|  Bauer AG (a) | 4513 |  | 27899 |
|  BayWa AG (d) | 5509 |  | 254754 |
|  BayWa AG | 305 |  | 19693 |
|  Bechtle AG | 18311 |  | 647944 |
|  Bertrandt AG (d) | 2127 |  | 90858 |
|  bet-at-home.com AG (a) (d) | 1222 |  | 6961 |
|  Bijou Brigitte AG (a) | 1603 |  | 73196 |
|  Bilfinger SE (d) | 10033 |  | 290792 |
|  Borussia Dortmund GmbH & Co. KGaA (a) | 26685 |  | 105885 |
|  CANCOM SE | 10426 |  | 304782 |
|  CECONOMY AG (d) | 47148 |  | 93608 |
|  CENIT AG (d) | 3413 |  | 44518 |
|  Cewe Stiftung & Co. KGaA (d) | 1828 |  | 173127 |
|  CompuGroup Medical SE & Co KgaA | 7186 |  | 276610 |
|  CropEnergies AG | 9235 |  | 128570 |
|  CTS Eventim AG & Co. KGaA (a) | 12519 |  | 798613 |
|  Data Modul AG | 138 |  | 8199 |
|  Dermapharm Holding SE | 3703 |  | 148596 |
|  Deutsche Beteiligungs AG (d) | 4577 |  | 136693 |
|  Deutsche Pfandbriefbank AG (144A) | 45896 |  | 357176 |
|  Deutz AG | 35447 |  | 153486 |
|  DIC Asset AG | 15921 |  | 129727 |
|  DMG Mori AG | 344 |  | 15431 |
|  Dr. Hoenle AG (d) | 2084 |  | 42838 |
|  Draegerwerk AG & Co. KGaA | 1062 |  | 41300 |
|  Duerr AG | 15842 |  | 534584 |
|  Eckert & Ziegler AG | 4645 |  | 230774 |
|  Elmos Semiconductor SE | 915 |  | 52408 |
|  ElringKlinger AG | 8918 |  | 66402 |
|  Encavis AG | 28569 |  | 565646 |
|  Energiekontor AG | 1621 |  | 133557 |
|  EuroEyes International Eye Clinic, Ltd. | 10000 |  | 7041 |
|  Evotec SE (a) | 6989 |  | 114074 |
|  Fielmann AG | 6684 |  | 265028 |
|  Flatexdegiro AG (a) | 7334 |  | 49655 |
|  FORTEC Elektronik AG | 253 |  | 6116 |
|  Fraport AG Frankfurt Airport Services Worldwide (a) | 8815 |  | 359028 |
|  Freenet AG | 40738 |  | 890529 |
|  Fuchs Petrolub SE | 7604 |  | 226395 |
|  GEA Group AG | 4012 |  | 163883 |
|  Gerresheimer AG | 9767 |  | 656728 |
|  Gesco AG | 2953 |  | 76174 |
|  GFT Technologies SE | 5130 |  | 186341 |
|  GK Software SE (a) | 80 |  | 11023 |
|  Grand City Properties S.A. | 31748 |  | 312443 |
|  GRENKE AG (d) | 659 |  | 13814 |
|  H&R GmbH & Co. KGaA (a) | 4195 |  | 27074 |
|  Hamburger Hafen und Logistik AG | 8624 |  | 109716 |
|  Hawesko Holding S.E. | 223 |  | 9377 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Germany—(Continued)** | **Germany—(Continued)** | **Germany—(Continued)** | **Germany—(Continued)** |
|  Heidelberger Druckmaschinen AG (a) (d) | 100140 | $| 158309 |
|  Hensoldt AG | 7853 |  | 185828 |
|  HOCHTIEF AG | 5762 |  | 324953 |
|  Hornbach Holding AG & Co. KGaA | 3220 |  | 265928 |
|  Hugo Boss AG | 20336 |  | 1178869 |
|  Hypoport SE (a) (d) | 804 |  | 83842 |
|  Indus Holding AG (d) | 6490 |  | 152482 |
|  Instone Real Estate Group SE (144A) | 9568 |  | 82629 |
|  IVU Traffic Technologies AG (d) | 1432 |  | 24672 |
|  Jenoptik AG | 16935 |  | 462554 |
|  JOST Werke AG (144A) | 2840 |  | 159643 |
|  K&S AG | 39216 |  | 771362 |
|  Kloeckner & Co. SE (d) | 21296 |  | 210480 |
|  Koenig & Bauer AG (a) | 4373 |  | 76179 |
|  Krones AG | 4960 |  | 557414 |
|  KSB SE & Co. KGaA | 82 |  | 35036 |
|  KWS Saat SE & Co. KGaA | 3725 |  | 255590 |
|  LANXESS AG | 22664 |  | 914628 |
|  LEG Immobilien SE | 1404 |  | 91494 |
|  Leifheit AG (d) | 2964 |  | 42920 |
|  Leoni AG (a) (d) | 12471 |  | 73425 |
|  Manz AG (a) (d) | 1272 |  | 28649 |
|  Medigene AG (a) | 2446 |  | 5289 |
|  METRO AG (a) (d) | 25342 |  | 247537 |
|  MLP SE | 22156 |  | 121915 |
|  Nagarro SE (a) (d) | 2942 |  | 348467 |
|  New Work SE (d) | 895 |  | 145638 |
|  Nexus AG | 4556 |  | 272146 |
|  Nordex SE (a) | 38188 |  | 539500 |
|  Norma Group SE | 10781 |  | 196137 |
|  OHB SE (d) | 1607 |  | 55459 |
|  PATRIZIA SE (d) | 16379 |  | 181651 |
|  Pfeiffer Vacuum Technology AG | 1559 |  | 286480 |
|  PNE Wind AG | 13868 |  | 315840 |
|  Progress-Werk Oberkirch AG (d) | 822 |  | 27605 |
|  ProSiebenSat.1 Media SE (d) | 59262 |  | 529692 |
|  PSI Software AG (d) | 4019 |  | 96697 |
|  PVA TePla AG (a) | 2716 |  | 53821 |
|  q.beyond AG (a) | 24973 |  | 20582 |
|  R Stahl AG (a) | 1594 |  | 28663 |
|  Rational AG | 106 |  | 62824 |
|  Rheinmetall AG | 704 |  | 140226 |
|  SAF-Holland SE | 12261 |  | 115661 |
|  Salzgitter AG | 10956 |  | 334411 |
|  Scout24 SE | 14883 |  | 747765 |
|  Secunet Security Networks AG (d) | 391 |  | 82341 |
|  SGL Carbon SE (a) (d) | 8945 |  | 66384 |
|  Siltronic AG | 6867 |  | 500540 |
|  Sirius Real Estate, Ltd. | 202692 |  | 180607 |
|  Sixt SE | 4289 |  | 394543 |
|  SMA Solar Technology AG (a) | 2848 |  | 203775 |
|  Software AG | 17469 |  | 452054 |
|  Softwareone Holding AG (a) | 16598 |  | 234997 |
|  Stabilus SE | 6982 |  | 469930 |
|  STRATEC SE (d) | 1553 |  | 134877 |
|  Stroeer SE & Co. KGaA (d) | 8363 |  | 389137 |
|  Suedzucker AG | 21506 |  | 376134 |
| **Germany—(Continued)** | **Germany—(Continued)** | **Germany—(Continued)** | **Germany—(Continued)** |
|  Surteco Group SE | 2209 |  | 45151 |
|  Suss Microtec SE (d) | 6216 |  | 100852 |
|  Synlab AG | 2964 |  | 35965 |
|  TAG Immobilien AG | 52366 |  | 339044 |
|  Takkt AG | 11656 |  | 168963 |
|  TeamViewer AG (144A) (a) | 33024 |  | 425863 |
|  Technotrans SE (d) | 2573 |  | 70133 |
|  ThyssenKrupp AG | 93759 |  | 572121 |
|  Traffic Systems SE | 1794 |  | 48876 |
|  United Internet AG | 8970 |  | 181355 |
|  Varta AG (d) | 2851 |  | 68726 |
|  VERBIO Vereinigte BioEnergie AG | 9187 |  | 595970 |
|  Vitesco Technologies Group AG - Class A (a) | 1976 |  | 114725 |
|  Vossloh AG | 3384 |  | 141617 |
|  Wacker Neuson SE | 10321 |  | 180538 |
|  Washtec AG | 3673 |  | 135828 |
|  Westwing Group SE (a) (d) | 1155 |  | 11875 |
|  Wuestenrot & Wuerttembergische AG | 4932 |  | 81576 |
|  |  |  | 30096134 |
| **Ghana—0.0%** | **Ghana—0.0%** | **Ghana—0.0%** | **Ghana—0.0%** |
|  Tullow Oil plc (a) | 488272 |  | 217945 |
| **Greece—0.0%** | **Greece—0.0%** | **Greece—0.0%** | **Greece—0.0%** |
|  Okeanis Eco Tankers Corp. (144A) (a) (d) | 983 |  | 17032 |
| **Greenland—0.0%** | **Greenland—0.0%** | **Greenland—0.0%** | **Greenland—0.0%** |
|  Gronlandsbanken A/S | 140 |  | 11893 |
| **Guernsey, Channel Islands—0.0%** | **Guernsey, Channel Islands—0.0%** | **Guernsey, Channel Islands—0.0%** | **Guernsey, Channel Islands—0.0%** |
|  Raven Property Group, Ltd. (a) (b) (c) | 112611 |  | 0 |
| **Hong Kong—2.2%** | **Hong Kong—2.2%** | **Hong Kong—2.2%** | **Hong Kong—2.2%** |
|  Aceso Life Science Group, Ltd. (a) | 1001000 |  | 15389 |
|  Aeon Credit Service Asia Co., Ltd. | 44000 |  | 27929 |
|  Aidigong Maternal & Child Health, Ltd. (a) (d) | 180000 |  | 10033 |
|  Allied Group, Ltd. | 382000 |  | 89560 |
|  APAC Resources, Ltd. | 84990 |  | 12413 |
|  Apollo Future Mobility Group, Ltd. (a) (d) | 348000 |  | 10745 |
|  Applied Development Holdings, Ltd. (a) | 390000 |  | 4297 |
|  Asia Financial Holdings, Ltd. | 88000 |  | 38896 |
|  Asia Standard International Group, Ltd. (a) | 296000 |  | 24580 |
|  ASMPT, Ltd. | 62100 |  | 442726 |
|  Associated International Hotels, Ltd. | 14000 |  | 15784 |
|  Bank of East Asia, Ltd. (The) | 85823 |  | 103464 |
|  Bel Global Resources Holdings, Ltd. (a) (b) (c) | 520000 |  | 0 |
|  BOCOM International Holdings Co., Ltd. | 117000 |  | 8357 |
|  Brightoil Petroleum Holdings, Ltd. (a) (b) (c) | 591000 |  | 0 |
|  Build King Holdings, Ltd. | 160000 |  | 17170 |
|  Burwill Holdings, Ltd. (a) (b) (c) | 1566000 |  | 0 |
|  C-Mer Eye Care Holdings, Ltd. (a) (d) | 74000 |  | 46151 |
|  Cadeler A/S (a) | 3200 |  | 12470 |
|  Cafe de Coral Holdings, Ltd. (d) | 106000 |  | 202368 |
|  Century City International Holdings, Ltd. (a) | 616000 |  | 23616 |
|  Chen Hsong Holdings | 150000 |  | 34489 |
|  Cheuk Nang Holdings, Ltd. | 108566 |  | 30183 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Hong Kong—(Continued)** | **Hong Kong—(Continued)** | **Hong Kong—(Continued)** |
|  Chevalier International Holdings, Ltd. | 75139 | $67578 |
|  China Baoli Technologies Holdings, Ltd. (a) | 28500 | 314 |
|  China Best Group Holding, Ltd. (a) | 45000 | 2537 |
|  China Energy Development Holdings, Ltd. (a) | 3376000 | 54422 |
|  China Motor Bus Co., Ltd. | 4800 | 42931 |
|  China Solar (a) (b) (c) | 162000 | 0 |
|  China Star Entertainment, Ltd. (a) | 378000 | 34384 |
|  China Tonghai International Financial, Ltd. (a) | 180000 | 4312 |
|  Chinese Estates Holdings, Ltd. (a) | 151000 | 48759 |
|  Chinney Investment, Ltd. | 8000 | 1189 |
|  Chow Sang Sang Holdings International, Ltd. | 111000 | 147054 |
|  Chuang's China Investments, Ltd. | 511500 | 17328 |
|  Chuang's Consortium International, Ltd. | 382357 | 34733 |
|  CK Life Sciences International Holdings, Inc. (d) | 304000 | 30772 |
|  CMBC Capital Holdings, Ltd. | 19000 | 5276 |
|  CNT Group, Ltd. | 246000 | 11661 |
|  Convenience Retail Asia, Ltd. | 36000 | 3776 |
|  Convoy Global Holdings (b) (c) | 1314000 | 5269 |
|  Cowell e Holdings, Inc. (a) (d) | 39000 | 53815 |
|  Crystal International Group, Ltd. (144A) | 29500 | 9150 |
|  CSC Holdings Ltd. (a) | 4927500 | 20782 |
|  CSI Properties, Ltd. | 2274023 | 37000 |
|  Dah Sing Banking Group, Ltd. | 139071 | 99715 |
|  Dah Sing Financial Holdings, Ltd. | 45460 | 104840 |
|  Dickson Concepts International, Ltd. | 87500 | 46688 |
|  DMX Technologies Group, Ltd. (a) (b) (c) | 186000 | 0 |
|  Dynamic Holdings, Ltd. | 20000 | 22939 |
|  Eagle Nice International Holdings, Ltd. | 80000 | 41564 |
|  EC Healthcare (d) | 59000 | 60704 |
|  EcoGreen International Group, Ltd. (a) (b) (c) | 118800 | 10844 |
|  Emperor Entertainment Hotel, Ltd. (a) | 235000 | 17669 |
|  Emperor International Holdings, Ltd. | 529250 | 44880 |
|  Emperor Watch & Jewellery, Ltd. | 1520000 | 34921 |
|  Energy Development (a) (b) (c) | 92000 | 0 |
|  ENM Holdings, Ltd. (a) | 412000 | 21118 |
|  Esprit Holdings, Ltd. (a) | 889275 | 95716 |
|  Fairwood Holdings, Ltd. | 26500 | 47386 |
|  Far East Consortium International, Ltd. (d) | 436442 | 104215 |
|  First Pacific Co., Ltd. | 674000 | 201218 |
|  Fosun Tourism Group (144A) (a) | 14400 | 21222 |
|  G-Resources Group, Ltd. | 123180 | 34180 |
|  Genting Hong Kong, Ltd. (a) (b) (c) | 327000 | 3259 |
|  Get Nice Financial Group, Ltd. | 104000 | 9640 |
|  Giordano International, Ltd. | 446000 | 98464 |
|  Glorious Sun Enterprises, Ltd. | 393000 | 37724 |
|  Gold Finance Holdings, Ltd. (a) (b) (c) | 214000 | 0 |
|  Gold Peak Technology Group Ltd. (a) | 277714 | 20650 |
|  Golden Resources Development International, Ltd. | 370000 | 23645 |
|  Good Resources Holdings, Ltd. (a) (b) (c) | 420000 | 0 |
|  GR Properties, Ltd. (a) | 82000 | 9888 |
|  Great Eagle Holdings, Ltd. (d) | 59491 | 130798 |
|  Guoco Group, Ltd. | 1000 | 8520 |
|  Haitong International Securities Group, Ltd. (a) (d) | 809117 | 90202 |
|  Hang Lung Group, Ltd. | 209000 | 384001 |
|  Hanison Construction Holdings, Ltd. | 148009 | 22034 |
|  Harbour Centre Development, Ltd. (a) | 88000 | 81293 |
|  HKBN, Ltd. (d) | 167500 | 107949 |
| **Hong Kong—(Continued)** | **Hong Kong—(Continued)** | **Hong Kong—(Continued)** |
|  HKR International, Ltd. | 343680 | 107317 |
|  Hon Kwok Land Investment Co., Ltd. | 140000 | 35155 |
|  Hong Kong Economic Times Holdings, Ltd. | 50000 | 7046 |
|  Hong Kong Ferry Holdings Co., Ltd. | 39000 | 39782 |
|  Hong Kong Technology Venture Co., Ltd, | 96000 | 65996 |
|  Hongkong & Shanghai Hotels (The) (a) | 110902 | 115382 |
|  Hongkong Chinese, Ltd. | 510000 | 32672 |
|  Hsin Chong Group Holdings, Ltd. (a) (b) (c) | 918000 | 0 |
|  Hung Hing Printing Group, Ltd. | 252000 | 31629 |
|  Hutchison Port Holdings Trust - Class U | 1123200 | 217507 |
|  Hutchison Telecommunications Hong Kong Holdings, Ltd. | 526000 | 82219 |
|  Hypebeast, Ltd. (a) | 127500 | 6439 |
|  Hysan Development Co., Ltd. | 153000 | 493573 |
|  Imagi International Holdings, Ltd. (a) | 90112 | 3752 |
|  International Housewares Retail Co., Ltd. | 134000 | 50216 |
|  IPE Group, Ltd. (a) | 285000 | 21543 |
|  IRC, Ltd. (a) | 936000 | 15876 |
|  ITC Properties Group, Ltd. | 182746 | 23364 |
|  Jacobson Pharma Corp., Ltd. | 90000 | 10600 |
|  Johnson Electric Holdings, Ltd. | 108873 | 137135 |
|  K Wah International Holdings, Ltd. | 172000 | 59720 |
|  Kader Holdings Co., Ltd. (a) | 104000 | 6196 |
|  Karrie International Holdings, Ltd. | 140000 | 26494 |
|  Keck Seng Investments Hong Kong, Ltd. | 72000 | 21201 |
|  Kerry Logistics Network, Ltd. (d) | 147500 | 265555 |
|  Kerry Properties, Ltd. (d) | 148000 | 322383 |
|  Kingmaker Footwear Holdings, Ltd. | 102000 | 13198 |
|  Kingston Financial Group, Ltd. (a) | 162000 | 5915 |
|  Kowloon Development Co., Ltd. (d) | 124000 | 116789 |
|  Lai Sun Development Co., Ltd. (a) | 111919 | 23860 |
|  Lai Sun Garment International, Ltd. (a) | 194634 | 39149 |
|  Lam Soon Hong Kong, Ltd. | 15000 | 20332 |
|  Langham Hospitality Investments and Langham Hospitality Investments, Ltd. | 207000 | 29440 |
|  Lerthai Group (a) (b) (c) | 18000 | 0 |
|  Lippo China Resources, Ltd. | 2106000 | 28790 |
|  Lippo, Ltd. | 122000 | 43452 |
|  Liu Chong Hing Investment, Ltd. | 78000 | 69892 |
|  Luk Fook Holdings International, Ltd. | 113000 | 335810 |
|  Lung Kee Bermuda Holdings | 90000 | 31076 |
|  Magnificent Hotel Investment, Ltd. (a) | 1310000 | 20811 |
|  Man Wah Holdings, Ltd. (d) | 319600 | 314645 |
|  Mandarin Oriental International, Ltd. (a) | 67000 | 128714 |
|  Mason Group Holdings, Ltd. (a) | 7685000 | 29537 |
|  Matrix Holdings, Ltd. | 36000 | 12453 |
|  Melco International Development, Ltd. (a) | 165000 | 179121 |
|  MH Development, Ltd. (a) (b) (c) | 124000 | 0 |
|  Midland Holdings, Ltd. (a) | 178010 | 17936 |
|  Miramar Hotel & Investment | 51000 | 79589 |
|  Modern Dental Group, Ltd. | 79000 | 24395 |
|  Nameson Holdings, Ltd. | 130000 | 8161 |
|  National Electronic Holdings, Ltd. | 182600 | 21990 |
|  New Huo Technology Holdings, Ltd. (a) | 10500 | 3562 |
|  Newocean Energy Holdings, Ltd. (a) (b) (c) | 398000 | 744 |
|  Nissin Foods Co., Ltd. (d) | 47000 | 40288 |
|  NWS Holdings, Ltd. | 279000 | 241302 |
|  Oriental Watch Holdings | 120484 | 62978 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Hong Kong—(Continued)** | **Hong Kong—(Continued)** | **Hong Kong—(Continued)** | **Hong Kong—(Continued)** |
|  Oshidori International Holdings, Ltd. (a) (d) | 1068000 | $| 38203 |
|  Pacific Andes International Holdings, Ltd. (a) (b) (c) | 1819984 |  | 0 |
|  Pacific Basin Shipping, Ltd. | 1337000 |  | 452308 |
|  Pacific Century Premium Developments, Ltd. (a) | 49788 |  | 2389 |
|  Pacific Textiles Holdings, Ltd. | 266000 |  | 87055 |
|  Paliburg Holdings, Ltd. (a) | 208000 |  | 49081 |
|  Paradise Entertainment, Ltd. (a) | 168000 |  | 15066 |
|  PC Partner Group, Ltd. | 54000 |  | 34182 |
|  PCCW, Ltd. | 576582 |  | 260035 |
|  Perfect Medical Health Management, Ltd. | 108000 |  | 56426 |
|  Pico Far East Holdings, Ltd. | 318000 |  | 52559 |
|  Playmates Holdings, Ltd. | 460000 |  | 33005 |
|  PT International Development Co., Ltd. (a) | 186000 |  | 4051 |
|  Public Financial Holdings, Ltd. | 166000 |  | 51142 |
|  Realord Group Holdings, Ltd. (a) | 20000 |  | 22702 |
|  Regal Hotels International Holdings, Ltd. (a) | 126000 |  | 51656 |
|  Regina Miracle International Holdings, Ltd. (144A) | 71000 |  | 32988 |
|  Sa Sa International Holdings, Ltd. (a) | 96000 |  | 22388 |
|  Samson Holding, Ltd. | 146000 |  | 5798 |
|  SAS Dragon Holdings, Ltd. | 140000 |  | 62777 |
|  SEA Holdings, Ltd. | 63896 |  | 27423 |
|  Shangri-La Asia, Ltd. (a) | 234000 |  | 191740 |
|  Shin Hwa World, Ltd. (a) | 310800 |  | 9956 |
|  Shun Ho Property Investments, Ltd. (a) | 21615 |  | 3102 |
|  Shun Tak Holdings, Ltd. (a) | 379500 |  | 81695 |
|  Singamas Container Holdings, Ltd. | 506000 |  | 47182 |
|  SmarTone Telecommunications Holdings, Ltd. | 124888 |  | 75368 |
|  Soundwill Holdings, Ltd. | 41500 |  | 36340 |
|  South China Holdings Co., Ltd. (a) | 1240000 |  | 7308 |
|  Stella International Holdings, Ltd. | 141000 |  | 132597 |
|  Sun Hung Kai & Co., Ltd. | 153440 |  | 57413 |
|  SUNeVision Holdings, Ltd. | 176000 |  | 94666 |
|  TAI Cheung Holdings, Ltd. | 192000 |  | 108076 |
|  Tan Chong International, Ltd. | 63000 |  | 12510 |
|  Tao Heung Holdings, Ltd. | 204000 |  | 23755 |
|  Television Broadcasts, Ltd. (a) (d) | 97700 |  | 46140 |
|  Texwinca Holdings, Ltd. | 300000 |  | 47987 |
|  Tradelink Electronic Commerce, Ltd. | 256000 |  | 28807 |
|  Transport International Holdings, Ltd. | 62602 |  | 91745 |
|  United Laboratories International Holdings, Ltd. (The) | 241000 |  | 150447 |
|  Upbest Group, Ltd. | 16000 |  | 1127 |
|  Value Partners Group, Ltd. | 215000 |  | 79345 |
|  Valuetronics Holdings, Ltd. | 89790 |  | 34898 |
|  Vedan International Holdings, Ltd. (a) | 296000 |  | 20857 |
|  Vitasoy International Holdings, Ltd. | 162000 |  | 332974 |
|  VPower Group International Holdings, Ltd. (144A) (a) | 53251 |  | 3108 |
|  VSTECS Holdings, Ltd. | 231200 |  | 133305 |
|  VTech Holdings, Ltd. | 42200 |  | 271145 |
|  Wai Kee Holdings, Ltd. | 54000 |  | 14325 |
|  Wang On Group, Ltd. (a) | 2200000 |  | 11522 |
|  Wealthking Investments, Ltd. (a) | 284000 |  | 14727 |
|  Wing On Co. International, Ltd. | 46000 |  | 78263 |
|  Wing Tai Properties, Ltd. | 210000 |  | 94165 |
|  Yue Yuen Industrial Holdings, Ltd. | 164000 |  | 228374 |
|  Yunfeng Financial Group, Ltd. (a) | 34000 |  | 4673 |
|  Zhaobangji Properties Holdings, Ltd. (a) | 184000 |  | 9901 |
|  |  |  | 11925006 |
| **India—0.0%** | **India—0.0%** | **India—0.0%** | **India—0.0%** |
|  Rhi Magnesita NV | 3120 |  | 83879 |
| **Ireland—0.7%** | **Ireland—0.7%** | **Ireland—0.7%** | **Ireland—0.7%** |
|  AIB Group plc | 22853 |  | 88091 |
|  Bank of Ireland Group plc | 205879 |  | 1952083 |
|  C&C Group plc (a) (d) | 120783 |  | 255048 |
|  Cairn Homes plc | 121611 |  | 113155 |
|  COSMO Pharmaceuticals NV | 1257 |  | 83147 |
|  Dalata Hotel Group plc (a) | 23703 |  | 82621 |
|  FBD Holdings plc | 10350 |  | 122485 |
|  Glanbia plc | 31805 |  | 405796 |
|  Glenveagh Properties plc (144A) (a) | 89923 |  | 81543 |
|  Greencore Group plc (a) | 159206 |  | 123327 |
|  Hostelworld Group plc (144A) (a) | 16696 |  | 23256 |
|  Irish Continental Group plc | 30411 |  | 139157 |
|  Permanent TSB Group Holdings plc (a) | 15086 |  | 29296 |
|  |  |  | 3499005 |
| **Isle of Man—0.0%** | **Isle of Man—0.0%** | **Isle of Man—0.0%** | **Isle of Man—0.0%** |
|  Hansard Global plc | 2566 |  | 1224 |
|  Strix Group plc (d) | 23629 |  | 23443 |
|  |  |  | 24667 |
| **Israel—1.4%** | **Israel—1.4%** | **Israel—1.4%** | **Israel—1.4%** |
|  Abra Information Technologies Ltd. (a) | 7868 |  | 8555 |
|  Adgar Investment and Development, Ltd. | 11788 |  | 17495 |
|  Afcon Holdings, Ltd. | 771 |  | 32109 |
|  AFI Properties, Ltd. (a) | 3584 |  | 105674 |
|  Africa Israel Residences, Ltd. | 880 |  | 38924 |
|  Airport City, Ltd. (a) | 1 |  | 8 |
|  Allot, Ltd. (a) | 10216 |  | 35497 |
|  Alrov Properties and Lodgings, Ltd. | 2507 |  | 131709 |
|  Arad, Ltd. | 2224 |  | 27806 |
|  Ashtrom Group, Ltd. | 1 |  | 5 |
|  AudioCodes, Ltd. | 5714 |  | 102217 |
|  Aura Investments, Ltd. | 3293 |  | 5171 |
|  Avgol Industries 1953, Ltd. (a) | 27883 |  | 14156 |
|  Azorim-Investment Development & Construction Co., Ltd. | 27784 |  | 89215 |
|  Bet Shemesh Engines Holdings, Ltd. (a) | 2139 |  | 47598 |
|  BioLine RX, Ltd. (a) | 1 |  | 0 |
|  Blue Square Real Estate, Ltd. | 1940 |  | 114499 |
|  Camtek, Ltd. (a) | 810 |  | 17582 |
|  Carasso Motors, Ltd. | 5984 |  | 34506 |
|  Cellcom Israel, Ltd. (a) | 24928 |  | 129360 |
|  Ceragon Networks, Ltd. (a) (d) | 14799 |  | 28266 |
|  Clal Insurance Enterprises Holdings, Ltd. (a) | 11244 |  | 189341 |
|  Compugen, Ltd. (a) | 1588 |  | 1093 |
|  Danel Adir Yeoshua, Ltd. | 1759 |  | 137586 |
|  Delek Automotive Systems, Ltd. | 12832 |  | 150401 |
|  Delta Galil, Ltd. | 3185 |  | 133455 |
|  Dor Alon Energy in Israel, Ltd. | 2364 |  | 62463 |
|  Duniec Brothers, Ltd. | 100 |  | 4965 |
|  Electra Consumer Products 1970, Ltd. | 1793 |  | 51763 |
|  Electra Real Estate, Ltd. | 6750 |  | 64890 |
|  Equital, Ltd. (a) | 8953 |  | 266655 |
|  FMS Enterprises Migun, Ltd. | 1295 |  | 43592 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Israel—(Continued)** | **Israel—(Continued)** | **Israel—(Continued)** | **Israel—(Continued)** |
|  Formula Systems 1985, Ltd. | 3277 | $| 237601 |
|  Fox Wizel, Ltd. | 1176 |  | 107677 |
|  Gav-Yam Lands Corp., Ltd. | 18811 |  | 146616 |
|  Gilat Satellite Networks, Ltd. (a) | 9844 |  | 55029 |
|  Globrands, Ltd. | 93 |  | 9847 |
|  Harel Insurance Investments & Financial Services, Ltd. | 8727 |  | 76969 |
|  Hilan, Ltd. | 4492 |  | 223100 |
|  IDI Insurance Co., Ltd. | 2662 |  | 57562 |
|  IES Holdings, Ltd. | 569 |  | 38549 |
|  Ilex Medical, Ltd. | 959 |  | 26139 |
|  Infinya Ltd. | 1104 |  | 108306 |
|  Inrom Construction Industries, Ltd. | 22474 |  | 85406 |
|  Isracard, Ltd. | 22812 |  | 66319 |
|  Israel Canada T.R., Ltd. | 30064 |  | 65408 |
|  Israel Land Development Co., Ltd. (The) | 3950 |  | 43568 |
|  Isras Investment Co., Ltd. | 541 |  | 103887 |
|  Issta, Ltd. | 1175 |  | 32233 |
|  Kamada, Ltd. (a) | 11729 |  | 45979 |
|  Kerur Holdings, Ltd. | 2088 |  | 46357 |
|  Klil Industries, Ltd. | 315 |  | 19892 |
|  Lahav L.R. Real Estate, Ltd. (a) | 7734 |  | 7482 |
|  Levinstein Properties, Ltd. | 1208 |  | 25771 |
|  M Yochananof & Sons, Ltd. | 586 |  | 31485 |
|  Magic Software Enterprises, Ltd. | 9462 |  | 150787 |
|  Malam - Team, Ltd. | 3350 |  | 71320 |
|  Matrix IT, Ltd. | 7868 |  | 164072 |
|  Mediterranean Towers, Ltd. | 28011 |  | 64899 |
|  Mega Or Holdings, Ltd. | 4941 |  | 136328 |
|  Mehadrin, Ltd. (a) | 108 |  | 3539 |
|  Meitav Dash Investments, Ltd. (a) | 8613 |  | 27759 |
|  Menora Mivtachim Holdings, Ltd. | 8846 |  | 172439 |
|  Migdal Insurance & Financial Holding, Ltd. (a) | 94179 |  | 107423 |
|  Mivtach Shamir Holdings, Ltd. | 1966 |  | 44464 |
|  Mizrahi Tefahot Bank, Ltd. | 1 |  | 30 |
|  Naphtha Israel Petroleum Corp., Ltd. (a) | 14775 |  | 67963 |
|  Nawi Brothers, Ltd. | 4888 |  | 34251 |
|  Neto Malinda Trading, Ltd. (a) | 783 |  | 19366 |
|  Neto ME Holdings, Ltd. (a) | 788 |  | 22144 |
|  Novolog, Ltd. | 43939 |  | 34522 |
|  NR Spuntech Industries, Ltd. (a) | 3848 |  | 3956 |
|  Oil Refineries, Ltd. | 418554 |  | 146555 |
|  One Software Technologies, Ltd. | 9000 |  | 125232 |
|  Partner Communications Co., Ltd. (a) | 36424 |  | 262243 |
|  Paz Oil Co., Ltd. (a) | 2185 |  | 272140 |
|  Perion Network, Ltd. (a) | 7105 |  | 177783 |
|  Plasson Industries, Ltd. | 1078 |  | 47971 |
|  Plus500, Ltd. | 25321 |  | 551566 |
|  Prashkovsky Investments and Construction, Ltd. | 569 |  | 13099 |
|  Priortech, Ltd. (a) | 2244 |  | 39502 |
|  Rami Levi Chain Stores Hashikma Marketing, Ltd. | 2198 |  | 153833 |
|  Sano-Brunos Enterprises, Ltd. (a) | 46 |  | 3112 |
|  Scope Metals Group, Ltd. | 1844 |  | 68751 |
|  Shikun & Binui, Ltd. (a) | 6 |  | 16 |
|  Summit Real Estate Holdings, Ltd. | 8001 |  | 101030 |
|  Suny Cellular Communication, Ltd. | 16495 |  | 7599 |
|  Tadiran Group, Ltd. | 855 |  | 85748 |
|  Tel Aviv Stock Exchange, Ltd. | 12781 |  | 76354 |
| **Israel—(Continued)** | **Israel—(Continued)** | **Israel—(Continued)** | **Israel—(Continued)** |
|  Telsys, Ltd. | 402 |  | 22318 |
|  Tera Light, Ltd. (a) | 8846 |  | 11986 |
|  Tremor International, Ltd. (ADR) (a) | 7429 |  | 47917 |
|  Victory Supermarket Chain, Ltd. | 589 |  | 6766 |
|  YH Dimri Construction & Development, Ltd. | 1750 |  | 108802 |
|  |  |  | 7203323 |
| **Italy—3.6%** | **Italy—3.6%** | **Italy—3.6%** | **Italy—3.6%** |
|  A2A S.p.A. | 383540 |  | 512585 |
|  ACEA S.p.A. | 15403 |  | 213421 |
|  Aeffe S.p.A. (a) | 11359 |  | 15080 |
|  Anima Holding S.p.A. (144A) | 92515 |  | 371628 |
|  Aquafil S.p.A. | 3537 |  | 23243 |
|  Arnoldo Mondadori Editore S.p.A. | 54123 |  | 104735 |
|  Ascopiave S.p.A. | 19908 |  | 51102 |
|  Autostrade Meridionali S.p.A. | 777 |  | 9581 |
|  Avio S.p.A. (d) | 6077 |  | 62228 |
|  Azimut Holding S.p.A. | 33841 |  | 758918 |
|  Banca Farmafactoring S.p.A. (144A) | 25343 |  | 200767 |
|  Banca Generali S.p.A. | 19702 |  | 678079 |
|  Banca IFIS S.p.A. | 7714 |  | 110269 |
|  Banca Mediolanum S.p.A. | 47767 |  | 399050 |
|  Banca Popolare dell'Emilia Romagna SC | 310312 |  | 635986 |
|  Banca Popolare di Sondrio SPA | 161515 |  | 652474 |
|  Banca Profilo S.p.A. (d) | 117883 |  | 24995 |
|  Banca Sistema S.p.A. (144A) (d) | 13168 |  | 21593 |
|  Banco BPM S.p.A. | 456529 |  | 1630528 |
|  Banco di Desio e della Brianza S.p.A. (d) | 20306 |  | 66296 |
|  Brembo S.p.A. | 35796 |  | 401435 |
|  Brunello Cucinelli S.p.A. | 9914 |  | 735640 |
|  Buzzi Unicem S.p.A. | 30531 |  | 590141 |
|  Cairo Communication S.p.A. | 25255 |  | 40257 |
|  Carel Industries S.p.A. (144A) | 6872 |  | 172737 |
|  Cementir Holding NV | 18579 |  | 122061 |
|  CIR SpA-Compagnie Industriali (a) (d) | 315684 |  | 146685 |
|  Credito Emiliano S.p.A. | 23832 |  | 168879 |
|  d'Amico International Shipping S.A. (a) | 115150 |  | 46029 |
|  Danieli & C Officine Meccaniche S.p.A. | 4407 |  | 98072 |
|  De'Longhi S.p.A. | 17430 |  | 390528 |
|  DeA Capital S.p.A. (a) | 32300 |  | 51233 |
|  doValue S.p.A. (144A) | 7705 |  | 58972 |
|  El.En. S.p.A. | 736 |  | 11270 |
|  Elica S.p.A. (d) | 11044 |  | 35100 |
|  Emak S.p.A. (d) | 23063 |  | 28786 |
|  Enav S.p.A. (144A) | 19304 |  | 81986 |
|  ERG S.p.A. | 5207 |  | 161850 |
|  Esprinet S.p.A. | 12105 |  | 87046 |
|  Eurotech S.p.A. (a) (d) | 13076 |  | 40074 |
|  Fila S.p.A. | 3057 |  | 22817 |
|  Fincantieri S.p.A. (a) (d) | 93136 |  | 52927 |
|  FNM S.p.A. (a) | 55327 |  | 25148 |
|  Geox S.p.A. (a) | 34378 |  | 29576 |
|  Gruppo MutuiOnline S.p.A. | 8426 |  | 237746 |
|  Hera S.p.A. | 272570 |  | 736931 |
|  Illimity Bank S.p.A. (a) | 12140 |  | 89834 |
|  IMMSI S.p.A. (d) | 51196 |  | 22455 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Italy—(Continued)** | **Italy—(Continued)** | **Italy—(Continued)** | **Italy—(Continued)** |
|  Interpump Group S.p.A. | 12568 | $| 569334 |
|  Iren S.p.A. | 217068 |  | 342183 |
|  Italgas S.p.A. | 151950 |  | 842579 |
|  Italmobiliare S.p.A. | 4207 |  | 115217 |
|  Iveco Group NV (a) | 15053 |  | 89366 |
|  IVS Group S.A. (d) | 7886 |  | 30970 |
|  KME Group S.p.A. (a) | 80757 |  | 47226 |
|  Leonardo S.p.A. | 109842 |  | 946831 |
|  LU-VE S.p.A. | 1991 |  | 59994 |
|  Maire Tecnimont S.p.A. | 42334 |  | 140333 |
|  Openjobmetis S.p.A. agenzia per il lavoro | 1209 |  | 10722 |
|  OVS S.p.A. (144A) | 72276 |  | 163508 |
|  Pharmanutra S.p.A. | 826 |  | 55036 |
|  Piaggio & C S.p.A. | 60717 |  | 182572 |
|  Pirelli & C S.p.A. (144A) | 101331 |  | 433102 |
|  Prima Industrie S.p.A. | 1853 |  | 49198 |
|  RAI Way S.p.A. (144A) | 24727 |  | 143358 |
|  Reply S.p.A. | 6087 |  | 700055 |
|  Rizzoli Corriere Della Sera Mediagroup S.p.A. | 39016 |  | 28002 |
|  Sabaf S.p.A. | 3059 |  | 54705 |
|  SAES Getters S.p.A. | 1511 |  | 38195 |
|  Safilo Group S.p.A. (a) | 12212 |  | 19863 |
|  Salvatore Ferragamo S.p.A. (d) | 10353 |  | 183249 |
|  Saras S.p.A. (a) | 169450 |  | 208899 |
|  Sesa S.p.A. | 2065 |  | 257410 |
|  Sogefi S.p.A. (a) | 24822 |  | 24689 |
|  SOL S.p.A. | 11001 |  | 208166 |
|  Tamburi Investment Partners S.p.A. (d) | 30449 |  | 238445 |
|  Technogym S.p.A. (144A) | 31905 |  | 243711 |
|  Telecom Italia S.p.A. (a) | 270568 |  | 62866 |
|  Tinexta S.p.A. (d) | 6919 |  | 169358 |
|  TXT e-solutions S.p.A. (a) (d) | 2997 |  | 41149 |
|  Uni Land S.p.A. (a) (b) (c) | 4937 |  | 0 |
|  Unieuro S.p.A. (144A) (d) | 3192 |  | 41950 |
|  Unipol Gruppo S.p.A. | 133549 |  | 650389 |
|  UnipolSai Assicurazioni S.p.A. | 22084 |  | 54337 |
|  Webuild S.p.A. (d) | 70140 |  | 103231 |
|  Zignago Vetro S.p.A. | 6769 |  | 102103 |
|  |  |  | 18881074 |
| **Japan—25.0%** | **Japan—25.0%** | **Japan—25.0%** | **Japan—25.0%** |
|  &Do Holdings Co., Ltd. | 1400 |  | 8297 |
|  77 Bank, Ltd. (The) | 17700 |  | 297635 |
|  A&D HOLON Holdings Co., Ltd. | 6000 |  | 45887 |
|  A/S One Corp. | 6700 |  | 293911 |
|  Access Co., Ltd. (a) | 7300 |  | 45476 |
|  Achilles Corp. | 4800 |  | 45347 |
|  Ad-sol Nissin Corp. | 1900 |  | 19468 |
|  Adastria Co., Ltd. | 8040 |  | 142454 |
|  ADEKA Corp. | 24400 |  | 396993 |
|  Adtec Plasma Technology Co., Ltd. (d) | 600 |  | 7237 |
|  Advan Group Co., Ltd. | 6700 |  | 43431 |
|  Advance Create Co., Ltd. | 1600 |  | 12970 |
|  Advanced Media, Inc. (a) | 1200 |  | 10956 |
|  Adventure, Inc. (d) | 600 |  | 42217 |
|  Aeon Delight Co., Ltd. | 6200 |  | 142336 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Aeon Fantasy Co., Ltd. | 2400 |  | 49064 |
|  AEON Financial Service Co., Ltd. | 7200 |  | 76475 |
|  Aeon Hokkaido Corp. | 4800 |  | 40580 |
|  Aeon Kyushu Co. Ltd. | 600 |  | 11078 |
|  Aeria, Inc. (d) | 2200 |  | 6534 |
|  AFC-HD AMS Life Science Co., Ltd. | 1900 |  | 10887 |
|  Agro-Kanesho Co., Ltd. (d) | 1000 |  | 12531 |
|  Ahresty Corp. | 9200 |  | 31551 |
|  Ai Holdings Corp. (d) | 10200 |  | 161129 |
|  Aica Kogyo Co., Ltd. | 13000 |  | 307012 |
|  Aichi Corp. | 10800 |  | 63467 |
|  Aichi Financial Group, Inc. | 12558 |  | 220276 |
|  Aichi Steel Corp. | 3200 |  | 52652 |
|  Aichi Tokei Denki Co., Ltd. | 3000 |  | 30437 |
|  Aida Engineering, Ltd. | 16900 |  | 99302 |
|  Aiful Corp. | 60500 |  | 182160 |
|  Ain Holdings, Inc. | 5700 |  | 261429 |
|  Ainavo Holdings Co., Ltd. | 1100 |  | 8356 |
|  Aiphone Co., Ltd. | 3800 |  | 53095 |
|  Airport Facilities Co., Ltd. | 7500 |  | 29564 |
|  Airtrip Corp. | 2500 |  | 46506 |
|  Aisan Industry Co., Ltd. | 10400 |  | 54221 |
|  AIT Corp. | 1600 |  | 16920 |
|  Aizawa Securities Group Co., Ltd. | 11000 |  | 57482 |
|  Ajis Co., Ltd. | 500 |  | 8364 |
|  Akatsuki Corp. | 8100 |  | 18986 |
|  Akatsuki, Inc. | 2100 |  | 35138 |
|  Akebono Brake Industry Co., Ltd. (a) | 17400 |  | 19719 |
|  Akita Bank, Ltd. (The) | 4100 |  | 59576 |
|  Albis Co., Ltd. | 1600 |  | 29219 |
|  Alconix Corp. | 6400 |  | 64544 |
|  Alinco, Inc. | 4600 |  | 34799 |
|  Alleanza Holdings Co., Ltd. | 1400 |  | 10559 |
|  Alpen Co., Ltd. | 4800 |  | 71328 |
|  Alpha Corp. | 2200 |  | 15419 |
|  AlphaPolis Co., Ltd. (a) | 400 |  | 6906 |
|  Alps Alpine Co., Ltd. | 23200 |  | 211464 |
|  Alps Logistics Co., Ltd. | 6000 |  | 52329 |
|  Altech Corp. | 4520 |  | 72233 |
|  Amano Corp. | 14400 |  | 264384 |
|  Amiyaki Tei Co., Ltd. (d) | 1100 |  | 24255 |
|  Amuse, Inc. | 2800 |  | 37090 |
|  Amvis Holdings, Inc. | 3700 |  | 94114 |
|  Anabuki Kosan, Inc. (d) | 800 |  | 11703 |
|  Anest Iwata Corp. | 10400 |  | 67689 |
|  AnGes, Inc. (a) (d) | 13200 |  | 12267 |
|  Anicom Holdings, Inc. | 15600 |  | 68914 |
|  Anritsu Corp. | 39400 |  | 382191 |
|  AOI Electronics Co., Ltd. | 1100 |  | 15169 |
|  AOKI Holdings, Inc. | 12500 |  | 65127 |
|  Aoyama Trading Co., Ltd. | 14500 |  | 101515 |
|  Aoyama Zaisan Networks Co., Ltd. | 2800 |  | 23037 |
|  Aozora Bank, Ltd. | 2500 |  | 49228 |
|  Apaman Co., Ltd. | 2100 |  | 7322 |
|  Arakawa Chemical Industries, Ltd. | 4600 |  | 33925 |
|  Arata Corp. | 4200 |  | 133133 |
|  Arcland Service Holdings Co., Ltd. (d) | 4000 |  | 65825 |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  ARCLANDS Corp. | 2200 | $26278 |
|  Arcs Co., Ltd. | 13364 | 223568 |
|  Arealink Co., Ltd. | 3100 | 42038 |
|  Argo Graphics, Inc. | 4800 | 134501 |
|  Arisawa Manufacturing Co., Ltd. | 10600 | 104453 |
|  ARTERIA Networks Corp. | 4700 | 44332 |
|  Artiza Networks, Inc. | 1800 | 12821 |
|  Artnature, Inc. | 5000 | 28593 |
|  Aruhi Corp. | 2000 | 15409 |
|  Asahi Broadcasting Group Holdings Corp. | 2400 | 11684 |
|  Asahi Co., Ltd. | 4500 | 47038 |
|  Asahi Diamond Industrial Co., Ltd. | 17700 | 90037 |
|  Asahi Holdings, Inc. | 20000 | 290897 |
|  Asahi Intelligence Service Co., Ltd. | 100 | 875 |
|  Asahi Kogyosha Co., Ltd. | 2400 | 37540 |
|  Asahi Net, Inc. | 5000 | 21615 |
|  Asahi Printing Co., Ltd. | 400 | 2577 |
|  ASAHI YUKIZAI Corp. | 5000 | 105517 |
|  Asahipen Corp. | 400 | 5919 |
|  Asanuma Corp. | 4800 | 110013 |
|  Asax Co., Ltd. | 5400 | 24373 |
|  Ascentech K.K. | 1400 | 4639 |
|  Ashimori Industry Co., Ltd. | 1600 | 13530 |
|  Asia Pile Holdings Corp. | 3800 | 15689 |
|  ASKA Pharmaceutical Holdings Co., Ltd. | 7500 | 74094 |
|  ASKUL Corp. | 9200 | 119511 |
|  Astena Holdings Co., Ltd. | 9000 | 28897 |
|  Atrae, Inc. (a) | 3200 | 27921 |
|  Atsugi Co., Ltd. (a) | 6100 | 18309 |
|  Aucnet, Inc. (d) | 2700 | 37311 |
|  Autobacs Seven Co., Ltd. | 20400 | 223867 |
|  Aval Data Corp. | 500 | 14875 |
|  Avant Group Corp. | 5800 | 59562 |
|  Avantia Co., Ltd. | 3000 | 18061 |
|  Avex, Inc. | 7600 | 96987 |
|  Awa Bank, Ltd. (The) | 10300 | 167142 |
|  Axell Corp. | 3800 | 48346 |
|  Axial Retailing, Inc. | 5100 | 131693 |
|  Axyz Co., Ltd. | 500 | 10996 |
|  AZ-COM Maruwa Holdings, Inc. | 7400 | 87871 |
|  Bando Chemical Industries, Ltd. | 12000 | 86580 |
|  Bank of Iwate, Ltd. (The) | 5400 | 80886 |
|  Bank of Kochi, Ltd. (The) | 1600 | 8655 |
|  Bank of Nagoya, Ltd. (The) | 3600 | 90916 |
|  Bank of Saga, Ltd. (The) | 5100 | 68954 |
|  Bank of the Ryukyus, Ltd. | 15800 | 105015 |
|  Baroque Japan, Ltd. | 3100 | 19413 |
|  Base Co., Ltd. | 600 | 15951 |
|  Beauty Garage, Inc. | 800 | 20612 |
|  Belc Co., Ltd. | 2800 | 121791 |
|  Bell System24 Holdings, Inc. | 8200 | 85135 |
|  Belluna Co., Ltd. | 16800 | 87008 |
|  Benesse Holdings, Inc. | 16500 | 252131 |
|  BeNEXT Group, Inc. | 3600 | 46078 |
|  Bengo4.com, Inc. (a) (d) | 1400 | 27216 |
|  Bic Camera, Inc. | 18000 | 175803 |
|  Bike O & Co., Ltd. (d) | 1600 | 12408 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  BML, Inc. | 7200 | 182198 |
|  Bookoff Group Holdings, Ltd. | 3500 | 36716 |
|  Bourbon Corp. | 2100 | 34202 |
|  BP Castrol KK | 2600 | 17760 |
|  Br Holdings Corp. | 7400 | 18525 |
|  BrainPad, Inc. (a) | 3300 | 18622 |
|  Broadleaf Co., Ltd. | 10700 | 35574 |
|  Bull-Dog Sauce Co., Ltd. (d) | 1200 | 16609 |
|  Bunka Shutter Co., Ltd. | 19000 | 159123 |
|  Business Brain Showa-Ota, Inc. | 2600 | 36445 |
|  Business Engineering Corp. | 800 | 14608 |
|  BuySell Technologies Co., Ltd. (d) | 400 | 16109 |
|  C Uyemura & Co., Ltd. | 3800 | 174308 |
|  C.I. Takiron Corp. | 16300 | 62191 |
|  CAC Holdings Corp. (d) | 4400 | 47731 |
|  Canare Electric Co., Ltd. | 800 | 8661 |
|  Canon Electronics, Inc. | 6000 | 68798 |
|  Careerlink Co., Ltd. | 1000 | 21551 |
|  Carenet, Inc. | 3600 | 30319 |
|  Carlit Holdings Co., Ltd. | 7300 | 42970 |
|  Carta Holdings, Inc. (d) | 900 | 10819 |
|  Casa, Inc. | 1000 | 6686 |
|  Cawachi, Ltd. | 4000 | 67923 |
|  CDS Co., Ltd. (d) | 700 | 9631 |
|  CellSource Co., Ltd. (a) (d) | 600 | 18302 |
|  Celsys ,Inc. (d) | 6900 | 35208 |
|  Central Automotive Products, Ltd. | 3000 | 56027 |
|  Central Glass Co., Ltd. | 8200 | 175519 |
|  Central Security Patrols Co., Ltd. | 2300 | 40739 |
|  Central Sports Co., Ltd. | 2400 | 44080 |
|  Ceres, Inc. (d) | 1600 | 10648 |
|  Change, Inc. | 5500 | 90821 |
|  Charm Care Corp. | 3800 | 36458 |
|  Chiba Kogyo Bank, Ltd. (The) | 16000 | 55360 |
|  Chilled & Frozen Logistics Holdings Co., Ltd. | 2800 | 25913 |
|  Chino Corp. | 2700 | 36019 |
|  Chiyoda Co., Ltd. | 5800 | 34552 |
|  Chiyoda Corp. (a) (d) | 38700 | 105659 |
|  Chiyoda Integre Co., Ltd. | 3900 | 63731 |
|  Chofu Seisakusho Co., Ltd. | 5700 | 83417 |
|  Chori Co., Ltd. | 4300 | 70819 |
|  Chubu Shiryo Co., Ltd. | 6800 | 56360 |
|  Chudenko Corp. | 8200 | 129762 |
|  Chuetsu Pulp & Paper Co., Ltd. | 1900 | 13813 |
|  Chugai Ro Co., Ltd. | 1400 | 17243 |
|  Chugin Financial Group, Inc. | 36700 | 267289 |
|  Chugoku Electric Power Co., Inc. (The) (a) | 15700 | 80417 |
|  Chugoku Marine Paints, Ltd. | 13000 | 93766 |
|  Chuo Gyorui Co., Ltd. | 200 | 4686 |
|  Chuo Spring Co., Ltd. | 4300 | 23517 |
|  Citizen Watch Co., Ltd. | 72900 | 328189 |
|  CKD Corp. | 9700 | 138665 |
|  Cleanup Corp. | 7300 | 35709 |
|  CMIC Holdings Co., Ltd. | 3900 | 52674 |
|  CMK Corp. | 15500 | 54304 |
|  COLOPL, Inc. | 7200 | 34443 |
|  Colowide Co., Ltd. (d) | 19300 | 261271 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Como Co., Ltd. | 400 | $8314 |
|  Computer Engineering & Consulting, Ltd. | 1500 | 17459 |
|  Computer Institute of Japan, Ltd. | 4080 | 27680 |
|  Comture Corp. (d) | 5900 | 107985 |
|  CONEXIO Corp. | 4600 | 66503 |
|  Core Corp. | 2500 | 27712 |
|  Corona Corp. | 4400 | 29282 |
|  Cosel Co., Ltd. | 8100 | 62225 |
|  Cosmo Energy Holdings Co., Ltd. | 2800 | 74052 |
|  Cosmos Initia Co., Ltd. | 3500 | 12875 |
|  Cota Co., Ltd. | 4977 | 64103 |
|  CRE, Inc. | 2100 | 17794 |
|  Create Medic Co., Ltd. | 1800 | 12056 |
|  Create Restaurants Holdings, Inc. (d) | 29400 | 203807 |
|  Create SD Holdings Co., Ltd. | 5600 | 139769 |
|  Credit Saison Co., Ltd. | 8600 | 111427 |
|  Creek & River Co., Ltd. | 3900 | 57769 |
|  Cresco, Ltd. | 4000 | 53109 |
|  Cross Cat Co., Ltd. | 1400 | 14170 |
|  CTI Engineering Co., Ltd. | 3900 | 95360 |
|  CTS Co., Ltd. | 7700 | 47443 |
|  Cube System, Inc. | 2500 | 19827 |
|  Curves Holdings Co., Ltd. (d) | 13000 | 85044 |
|  Cyber Com Co., Ltd. | 1100 | 12854 |
|  Cybozu, Inc. (d) | 5300 | 97842 |
|  Dai Nippon Toryo Co., Ltd. | 7800 | 44627 |
|  Dai-Dan Co., Ltd. | 4600 | 76811 |
|  Daicel Corp. | 46500 | 336916 |
|  Daido Kogyo Co., Ltd. | 2000 | 11203 |
|  Daido Metal Co., Ltd. | 13400 | 48372 |
|  Daido Steel Co., Ltd. | 7600 | 247602 |
|  Daihatsu Diesel Manufacturing Co., Ltd. | 6700 | 25896 |
|  Daihen Corp. | 5600 | 163169 |
|  Daiho Corp. | 3800 | 113706 |
|  Daiichi Jitsugyo Co., Ltd. | 2800 | 93551 |
|  Daiichi Kigenso Kagaku-Kogyo Co., Ltd. | 5000 | 38532 |
|  Daiken Corp. | 4100 | 64994 |
|  Daiken Medical Co., Ltd. | 4400 | 15017 |
|  Daiki Aluminium Industry Co., Ltd. | 9000 | 84820 |
|  Daiki Axis Co., Ltd. (d) | 1300 | 6646 |
|  Daiko Denshi Tsushin, Ltd. | 1300 | 4591 |
|  Daikoku Denki Co., Ltd. | 2700 | 41000 |
|  Daikokutenbussan Co., Ltd. | 1300 | 53185 |
|  Daikyonishikawa Corp. | 11600 | 48743 |
|  Dainichi Co., Ltd. | 4100 | 20532 |
|  Dainichiseika Color & Chemicals Manufacturing Co., Ltd. | 4000 | 51738 |
|  Daio Paper Corp. | 16200 | 124883 |
|  Daiohs Corp. | 800 | 9114 |
|  Daiseki Co., Ltd. | 12839 | 442086 |
|  Daishi Hokuetsu Financial Group, Inc. | 10300 | 224802 |
|  Daishinku Corp. | 10400 | 54154 |
|  Daisue Construction Co., Ltd. | 2300 | 20291 |
|  Daito Bank, Ltd. (The) | 5200 | 26960 |
|  Daito Pharmaceutical Co., Ltd. | 3960 | 75295 |
|  Daitron Co., Ltd. | 2400 | 41329 |
|  Daiwa Industries, Ltd. (d) | 11000 | 93525 |
|  Daiwabo Holdings Co., Ltd. | 26000 | 381578 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  DCM Holdings Co., Ltd. | 33100 | 302951 |
|  Dear Life Co., Ltd. | 7500 | 35081 |
|  Delica Foods Holdings Co., Ltd. | 600 | 2157 |
|  DeNA Co., Ltd. | 19200 | 256139 |
|  Densan System Holdings Co., Ltd. (d) | 1700 | 28085 |
|  Denyo Co., Ltd. | 4800 | 56848 |
|  Dexerials Corp. | 15300 | 297090 |
|  DIC Corp. (d) | 14500 | 254609 |
|  Digital Arts, Inc. (d) | 2900 | 123001 |
|  Digital Garage, Inc. | 7800 | 268140 |
|  Digital Holdings, Inc. | 2100 | 19484 |
|  Digital Information Technologies Corp. | 2100 | 28668 |
|  Dip Corp. | 9500 | 272170 |
|  Direct Marketing MiX, Inc. | 3000 | 35141 |
|  DKK Co., Ltd. | 3300 | 49948 |
|  DKS Co., Ltd. | 2800 | 41399 |
|  DMG Mori Co., Ltd. (d) | 31300 | 413066 |
|  DMW Corp. | 700 | 16250 |
|  Doshisha Co., Ltd. | 7400 | 90988 |
|  Double Standard, Inc. | 1400 | 23742 |
|  Doutor Nichires Holdings Co., Ltd. | 7600 | 98979 |
|  Drecom Co., Ltd. (d) | 2700 | 16346 |
|  DTS Corp. | 11700 | 262990 |
|  Duskin Co., Ltd. | 12500 | 283669 |
|  DyDo Group Holdings, Inc. | 3200 | 116037 |
|  E-Guardian, Inc. | 2400 | 48469 |
|  Eagle Industry Co., Ltd. | 7800 | 63689 |
|  Earth Corp. (d) | 2500 | 95691 |
|  EAT&Holdings Co., Ltd. | 1400 | 24798 |
|  Ebara Foods Industry, Inc. | 700 | 16133 |
|  Ebara Jitsugyo Co., Ltd. | 3000 | 50261 |
|  Ebase Co., Ltd. | 4800 | 20257 |
|  Eco's Co., Ltd. (d) | 2100 | 30039 |
|  EDION Corp. | 22500 | 219663 |
|  EF-ON, Inc. | 6100 | 22569 |
|  eGuarantee, Inc. | 8200 | 151229 |
|  Ehime Bank, Ltd. (The) | 11400 | 79369 |
|  Eidai Co., Ltd. | 10000 | 16403 |
|  Eiken Chemical Co., Ltd. | 7500 | 97635 |
|  Eizo Corp. | 4400 | 114975 |
|  Elan Corp. | 8200 | 58019 |
|  Elecom Co., Ltd. | 11700 | 120294 |
|  Elematec Corp. | 6800 | 80069 |
|  EM Systems Co., Ltd. | 3500 | 21435 |
|  en-japan, Inc. | 8300 | 151589 |
|  Endo Lighting Corp. | 2600 | 14191 |
|  Enigmo, Inc. | 6400 | 31098 |
|  Enplas Corp. | 2100 | 61158 |
|  Entrust, Inc. | 1500 | 9346 |
|  eRex Co., Ltd. | 8000 | 132351 |
|  ES-Con Japan, Ltd. | 6700 | 39674 |
|  Eslead Corp. | 2700 | 38091 |
|  ESPEC Corp. | 6500 | 93970 |
|  Exedy Corp. | 9100 | 111256 |
|  EXEO Group, Inc. | 11600 | 197449 |
|  Ezaki Glico Co., Ltd. (d) | 13000 | 357544 |
|  F&M Co., Ltd. | 1600 | 32067 |

---

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  F-Tech, Inc. | 6000 | $23126 |
|  Faith, Inc. | 2680 | 10523 |
|  FALCO HOLDINGS Co., Ltd. | 3100 | 41311 |
|  FCC Co., Ltd. | 10500 | 107219 |
|  FDK Corp. (a) (d) | 3600 | 25154 |
|  Feed One Co., Ltd. | 8276 | 44850 |
|  Ferrotec Holdings Corp. | 11700 | 248029 |
|  Fibergate, Inc. | 1800 | 12327 |
|  FIDEA Holdings Co., Ltd. | 6250 | 68482 |
|  Financial Partners Group Co., Ltd. | 14600 | 123521 |
|  FINDEX, Inc. | 3900 | 14676 |
|  First Bank of Toyama, Ltd. (The) (d) | 10700 | 47241 |
|  First Brothers Co., Ltd. (d) | 900 | 5979 |
|  First Juken Co., Ltd. | 1600 | 12385 |
|  First-corp, Inc. | 1600 | 8594 |
|  Fixstars Corp. | 4100 | 37692 |
|  FJ Next Holdings Co., Ltd. | 3800 | 27699 |
|  Focus Systems Corp. | 2900 | 22413 |
|  Food & Life Cos. Ltd. | 7000 | 138495 |
|  Forval Corp. | 1900 | 14867 |
|  Foster Electric Co., Ltd. | 7400 | 46605 |
|  FP Corp. | 7200 | 207846 |
|  France Bed Holdings Co., Ltd. | 9300 | 66195 |
|  FreakOut Holdings, Inc. (a) | 800 | 9532 |
|  Freebit Co., Ltd. (d) | 2100 | 15608 |
|  Freund Corp. | 2400 | 12175 |
|  FTGroup Co., Ltd. | 1500 | 11999 |
|  Fudo Tetra Corp. | 6030 | 68765 |
|  Fuji Co., Ltd. | 6700 | 92805 |
|  Fuji Corp. | 16500 | 239653 |
|  Fuji Corp., Ltd. | 8600 | 42945 |
|  Fuji Corp/Miyagi | 2300 | 23373 |
|  Fuji Kyuko Co., Ltd. | 5300 | 192269 |
|  Fuji Media Holdings, Inc. | 8400 | 68725 |
|  Fuji Oil Co., Ltd. | 21100 | 41310 |
|  Fuji Oil Holdings, Inc. | 10600 | 164357 |
|  Fuji Pharma Co., Ltd. | 4600 | 35781 |
|  Fuji Seal International, Inc. | 12100 | 154096 |
|  Fuji Soft, Inc. (d) | 2400 | 138206 |
|  Fujibo Holdings, Inc. | 3300 | 80942 |
|  Fujicco Co., Ltd. | 6500 | 94837 |
|  Fujikura Composites, Inc. | 5800 | 36665 |
|  Fujikura Kasei Co., Ltd. | 9500 | 29198 |
|  Fujikura, Ltd. | 44900 | 340183 |
|  Fujimi, Inc. | 3300 | 157077 |
|  Fujimori Kogyo Co., Ltd. | 4900 | 113083 |
|  Fujisash Co., Ltd. | 24500 | 12476 |
|  Fujishoji Co., Ltd. | 1300 | 12206 |
|  Fujiya Co., Ltd. (d) | 3300 | 63684 |
|  FuKoKu Co., Ltd. | 5100 | 39856 |
|  Fukuda Corp. (d) | 2100 | 70952 |
|  Fukuda Denshi Co., Ltd. | 4200 | 145905 |
|  Fukui Bank, Ltd. (The) | 5400 | 61635 |
|  Fukui Computer Holdings, Inc. | 2700 | 53750 |
|  Fukushima Bank, Ltd. (The) | 11200 | 21907 |
|  Fukushima Galilei Co., Ltd. | 3800 | 120733 |
|  Fukuyama Transporting Co., Ltd. | 3200 | 73928 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  FULLCAST Holdings Co., Ltd. | 5400 | 116141 |
|  Funai Soken Holdings, Inc. (d) | 10370 | 214520 |
|  Furukawa Battery Co., Ltd. (The) (d) | 5000 | 41010 |
|  Furukawa Co., Ltd. | 10500 | 100412 |
|  Furukawa Electric Co., Ltd. | 20900 | 392279 |
|  Furuno Electric Co., Ltd. | 8400 | 61448 |
|  Furuya Metal Co., Ltd. (d) | 1100 | 73794 |
|  Furyu Corp. | 4300 | 35394 |
|  Fuso Chemical Co., Ltd. | 4600 | 119112 |
|  Fuso Pharmaceutical Industries, Ltd. | 2600 | 39432 |
|  Futaba Corp. | 10200 | 41259 |
|  Futaba Industrial Co., Ltd. | 19600 | 52757 |
|  Future Corp. (d) | 11200 | 140472 |
|  Fuyo General Lease Co., Ltd. | 5100 | 332609 |
|  G-7 Holdings, Inc. | 5800 | 72496 |
|  G-Tekt Corp. | 7700 | 83890 |
|  Gakken Holdings Co., Ltd. | 6400 | 45294 |
|  Gakkyusha Co., Ltd. | 2800 | 38322 |
|  Gecoss Corp. | 4600 | 29189 |
|  Genki Sushi Co., Ltd. | 1600 | 37406 |
|  Genky DrugStores Co., Ltd. | 2400 | 65789 |
|  Geo Holdings Corp. | 8100 | 133761 |
|  Gift Holdings, Inc. | 800 | 25180 |
|  GL Sciences, Inc. | 1300 | 22696 |
|  GLOBERIDE, Inc. | 5200 | 99802 |
|  Glory, Ltd. | 13000 | 215585 |
|  GMO Financial Gate, Inc. | 200 | 22809 |
|  GMO Financial Holdings, Inc. (d) | 8000 | 31146 |
|  GMO GlobalSign Holdings K.K. (d) | 1000 | 31337 |
|  GMO internet group, Inc. | 600 | 11269 |
|  GMO Pepabo, Inc. | 700 | 9931 |
|  Godo Steel, Ltd. | 3500 | 56722 |
|  Goldcrest Co., Ltd. | 6230 | 79773 |
|  Golf Digest Online, Inc. | 900 | 10408 |
|  Good Com Asset Co., Ltd. | 3200 | 19853 |
|  Grandy House Corp. | 3600 | 15104 |
|  gremz, Inc. | 900 | 14377 |
|  GS Yuasa Corp. | 15900 | 253861 |
|  GSI Creos Corp. | 3600 | 40082 |
|  Gun-Ei Chemical Industry Co., Ltd. | 1800 | 32287 |
|  GungHo Online Entertainment, Inc. | 10500 | 170523 |
|  Gunma Bank, Ltd. (The) | 90700 | 348082 |
|  Gunze, Ltd. | 4800 | 153434 |
|  H-One Co., Ltd. | 6000 | 27905 |
|  H.U. Group Holdings, Inc. | 14400 | 313990 |
|  H2O Retailing Corp. (d) | 24100 | 235986 |
|  HABA Laboratories, Inc. | 700 | 12767 |
|  Hachijuni Bank, Ltd. (The) | 94400 | 393879 |
|  Hagihara Industries, Inc. | 4000 | 36238 |
|  Hagiwara Electric Holdings Co., Ltd. | 2400 | 44430 |
|  Hakudo Co., Ltd. | 2400 | 45065 |
|  Hakuto Co., Ltd. (d) | 4900 | 155809 |
|  Halows Co., Ltd. | 2100 | 46364 |
|  Hamakyorex Co., Ltd. | 5600 | 132996 |
|  Hamee Corp. | 1800 | 9665 |
|  Handsman Co., Ltd. | 800 | 5852 |
|  Hanwa Co., Ltd. | 9300 | 262342 |

---

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Happinet Corp. | 5000 | $77999 |
|  Hard Off Corp. Co., Ltd. | 3700 | 36608 |
|  Harima Chemicals Group, Inc. | 4300 | 26631 |
|  Hashimoto Sogyo Holdings Co. Ltd. | 1400 | 10965 |
|  Hazama Ando Corp. (d) | 54490 | 346382 |
|  Hearts United Group Co., Ltd. | 2600 | 35356 |
|  Heiwa Corp. | 15000 | 282816 |
|  Heiwa Real Estate Co., Ltd. | 6500 | 180199 |
|  Heiwado Co., Ltd. | 8700 | 141594 |
|  Helios Techno Holding Co., Ltd. | 2900 | 9923 |
|  Hennge KK (a) (d) | 600 | 4222 |
|  HI-LEX Corp. | 5500 | 45111 |
|  Hibiya Engineering, Ltd. | 5800 | 84125 |
|  Himaraya Co., Ltd. | 2600 | 18445 |
|  Hioki EE Corp. (d) | 3000 | 144640 |
|  Hirakawa Hewtech Corp. | 2000 | 16966 |
|  Hirano Tecseed Co., Ltd. | 1300 | 22525 |
|  Hirata Corp. | 1000 | 41587 |
|  Hirogin Holdings, Inc. | 69200 | 348097 |
|  Hirose Tusyo, Inc. | 300 | 5657 |
|  Hiroshima Electric Railway Co., Ltd. | 1500 | 9349 |
|  Hiroshima Gas Co., Ltd. | 7000 | 18278 |
|  Hisaka Works, Ltd. | 7000 | 43187 |
|  Hitachi Zosen Corp. | 50600 | 315111 |
|  Hito Communications Holdings, Inc. (d) | 1700 | 19668 |
|  Hochiki Corp. | 4600 | 48782 |
|  Hodogaya Chemical Co., Ltd. | 1800 | 38608 |
|  Hogy Medical Co., Ltd. (d) | 3700 | 95391 |
|  Hokkaido Electric Power Co., Inc. (a) | 53500 | 188803 |
|  Hokkaido Gas Co., Ltd. | 5400 | 68909 |
|  Hokkan Holdings, Ltd. | 3300 | 34520 |
|  Hokko Chemical Industry Co., Ltd. (d) | 7000 | 42899 |
|  Hokkoku Financial Holdings, Inc. | 7200 | 249006 |
|  Hokuetsu Corp. | 29900 | 173165 |
|  Hokuetsu Industries Co., Ltd. | 7000 | 69705 |
|  Hokuhoku Financial Group, Inc. | 37300 | 277027 |
|  Hokuriku Electric Industry Co., Ltd. | 2800 | 26170 |
|  Hokuriku Electric Power Co. (a) | 47000 | 195248 |
|  Hokuriku Electrical Construction Co., Ltd. | 3600 | 18055 |
|  Hokuriku Gas Co., Ltd. | 1000 | 23199 |
|  Hokuto Corp. | 7100 | 101320 |
|  Honeys Holdings Co., Ltd. | 6930 | 73542 |
|  Honma Golf, Ltd. (144A) | 27000 | 11257 |
|  Hoosiers Holdings Co., Ltd. | 8000 | 45129 |
|  Horiba, Ltd. | 5000 | 218194 |
|  Hoshi Iryo-Sanki Co., Ltd. | 300 | 9120 |
|  Hosiden Corp. | 16400 | 197284 |
|  Hosokawa Micron Corp. | 4400 | 89123 |
|  Hotland Co., Ltd. (d) | 3200 | 34793 |
|  Hotto Link, Inc. (a) | 800 | 2135 |
|  House Foods Group, Inc. | 600 | 12637 |
|  Howa Machinery, Ltd. | 4400 | 32850 |
|  HPC Systems, Inc. | 500 | 7666 |
|  HS Holdings Co., Ltd. | 10300 | 94659 |
|  Hyakugo Bank, Ltd. (The) | 68600 | 191440 |
|  Hyakujushi Bank, Ltd. (The) | 5800 | 84346 |
|  I'll, Inc. | 900 | 12081 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  I'rom Group Co., Ltd. | 2700 | 52535 |
|  i-mobile Co., Ltd. | 1800 | 15924 |
|  I-NE Co., Ltd. (a) | 800 | 18037 |
|  I-Net Corp. | 3520 | 34805 |
|  I-PEX, Inc. | 3100 | 27965 |
|  IBJ, Inc. | 4900 | 36570 |
|  Ichigo, Inc. | 5300 | 11411 |
|  Ichiken Co., Ltd. | 1800 | 24480 |
|  Ichikoh Industries, Ltd. | 9000 | 24600 |
|  Ichimasa Kamaboko Co., Ltd. | 1100 | 5959 |
|  ICHINEN HOLDINGS Co., Ltd. | 7400 | 70188 |
|  Ichiyoshi Securities Co., Ltd. | 12600 | 58775 |
|  Icom, Inc. | 2600 | 55228 |
|  ID Holdings Corp. | 3899 | 27735 |
|  Idec Corp. | 7500 | 166809 |
|  IDOM, Inc. | 20400 | 102319 |
|  Ihara Science Corp. | 1800 | 30118 |
|  Iino Kaiun Kaisha, Ltd. | 23200 | 162739 |
|  IJTT Co., Ltd. | 9000 | 34288 |
|  Imagica Group, Inc. | 4500 | 22272 |
|  Imasen Electric Industrial | 2000 | 9389 |
|  Imuraya Group Co., Ltd. | 2900 | 49219 |
|  Inaba Denki Sangyo Co., Ltd. | 15300 | 313101 |
|  Inaba Seisakusho Co., Ltd. | 3200 | 33897 |
|  Inabata & Co., Ltd. | 13000 | 234388 |
|  Inageya Co., Ltd. | 2000 | 18877 |
|  Ines Corp. | 7300 | 76011 |
|  Infocom Corp. | 4500 | 73794 |
|  Infomart Corp. | 44600 | 121220 |
|  Information Services International-Dentsu, Ltd. | 3100 | 92677 |
|  INFRONEER Holdings, Inc. | 35175 | 266324 |
|  Innotech Corp. | 3900 | 38083 |
|  Insource Co., Ltd. | 11200 | 132048 |
|  Intage Holdings, Inc. (d) | 11600 | 120619 |
|  Intelligent Wave, Inc. | 3400 | 18483 |
|  Inter Action Corp. | 2700 | 31186 |
|  Inui Global Logistics Co., Ltd. | 3000 | 45321 |
|  IR Japan Holdings, Ltd. | 2000 | 27305 |
|  Iriso Electronics Co., Ltd. | 5500 | 177180 |
|  ISB Corp. | 400 | 3406 |
|  Ise Chemicals Corp. | 1000 | 40847 |
|  Iseki & Co., Ltd. | 5700 | 50445 |
|  Ishihara Chemical Co., Ltd. | 1200 | 11225 |
|  Ishihara Sangyo Kaisha, Ltd. | 12200 | 98765 |
|  Ishii Iron Works Co., Ltd. | 900 | 15182 |
|  Ishizuka Glass Co., Ltd. | 500 | 5380 |
|  Itfor, Inc. | 7800 | 49431 |
|  ITmedia, Inc. | 1500 | 18645 |
|  Itochu Enex Co., Ltd. | 17400 | 138335 |
|  Itochu-Shokuhin Co., Ltd. | 2000 | 74944 |
|  Itoham Yonekyu Holdings, Inc. | 29500 | 156856 |
|  Itoki Corp. | 15600 | 68980 |
|  IwaiCosmo Holdings, Inc. | 6200 | 61016 |
|  Iwaki Co., Ltd. | 1300 | 12181 |
|  Iwasaki Electric Co., Ltd. | 2500 | 43369 |
|  Iwatsuka Confectionery Co., Ltd. | 1000 | 32743 |
|  Iyogin Holdings, Inc. | 61000 | 332231 |

---

*See accompanying notes to financial statements.* 

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Izumi Co., Ltd. | 7400 | $167281 |
|  J Front Retailing Co., Ltd. | 6700 | 61115 |
|  J Trust Co., Ltd. (d) | 21200 | 82761 |
|  J-Lease Co., Ltd. | 600 | 13008 |
|  J-Oil Mills, Inc. | 6600 | 75910 |
|  J-Stream, Inc. | 1000 | 4265 |
|  JAC Recruitment Co., Ltd. | 3900 | 71608 |
|  Jaccs Co., Ltd. | 6100 | 190300 |
|  JAFCO Group Co., Ltd. (d) | 21700 | 368896 |
|  JANOME Corp. | 7099 | 31150 |
|  Japan Aviation Electronics Industry, Ltd. | 15200 | 244152 |
|  Japan Cash Machine Co., Ltd. | 4300 | 35145 |
|  Japan Communications, Inc. (a) (d) | 35600 | 58988 |
|  Japan Electronic Materials Corp. | 2400 | 24167 |
|  Japan Elevator Service Holdings Co., Ltd. | 17300 | 216689 |
|  Japan Foundation Engineering Co., Ltd. | 7900 | 29111 |
|  Japan Investment Adviser Co., Ltd. (d) | 3200 | 28420 |
|  Japan Lifeline Co., Ltd. | 15500 | 108140 |
|  Japan Material Co., Ltd. (d) | 15600 | 250638 |
|  Japan Medical Dynamic Marketing, Inc. | 4400 | 30038 |
|  Japan Oil Transportation Co., Ltd. | 700 | 11604 |
|  Japan Petroleum Exploration Co., Ltd. | 10500 | 308325 |
|  Japan Property Management Center Co., Ltd. | 4100 | 31098 |
|  Japan Pulp & Paper Co., Ltd. | 3700 | 143299 |
|  Japan Pure Chemical Co., Ltd. | 500 | 9089 |
|  Japan Securities Finance Co., Ltd. | 24000 | 209514 |
|  Japan Steel Works, Ltd. (The) | 6900 | 137021 |
|  Japan Transcity Corp. | 12000 | 46366 |
|  Japan Wool Textile Co., Ltd. (The) | 17100 | 126074 |
|  Jastec Co., Ltd. | 4300 | 37642 |
|  JBCC Holdings, Inc. | 5300 | 74003 |
|  JCR Pharmaceuticals Co., Ltd. | 6500 | 83216 |
|  JCU Corp. | 5700 | 133695 |
|  Jeol, Ltd. | 1500 | 40290 |
|  JFE Systems, Inc. | 700 | 12272 |
|  JIG-SAW, Inc. (a) (d) | 900 | 31943 |
|  Jimoto Holdings, Inc. | 6790 | 22674 |
|  JINS Holdings, Inc. | 3200 | 111971 |
|  JINUSHI Co., Ltd. | 3500 | 49230 |
|  JK Holdings Co., Ltd. | 5600 | 43681 |
|  JM Holdings Co., Ltd. | 3200 | 41612 |
|  JMS Co., Ltd. | 6400 | 24525 |
|  Joban Kosan Co., Ltd. (a) | 1700 | 15653 |
|  Joshin Denki Co., Ltd. | 5700 | 83800 |
|  Joyful Honda Co., Ltd. (d) | 11900 | 173787 |
|  JP-Holdings, Inc. | 17900 | 40416 |
|  JSB Co., Ltd. (d) | 1000 | 30990 |
|  JSP Corp. | 3900 | 43762 |
|  Juki Corp. | 7200 | 33531 |
|  Juroku Financial Group, Inc. | 9700 | 211928 |
|  Justsystems Corp. | 8000 | 171609 |
|  JVC Kenwood Corp. | 53300 | 148313 |
|  K&O Energy Group, Inc. (d) | 5400 | 83508 |
|  K's Holdings Corp. | 30100 | 258673 |
|  Kadoya Sesame Mills, Inc. | 800 | 21425 |
|  Kaga Electronics Co., Ltd. | 5200 | 161787 |
|  Kagome Co., Ltd. | 2700 | 62583 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Kaken Pharmaceutical Co., Ltd. | 6500 | 191193 |
|  Kakiyasu Honten Co., Ltd. | 2500 | 39673 |
|  Kamakura Shinsho, Ltd. | 3700 | 28183 |
|  Kameda Seika Co., Ltd. | 3500 | 115991 |
|  Kamei Corp. | 7700 | 71014 |
|  Kanaden Corp. | 6300 | 52195 |
|  Kanagawa Chuo Kotsu Co., Ltd. | 2400 | 59331 |
|  Kanamic Network Co., Ltd. | 900 | 3944 |
|  Kanamoto Co., Ltd. | 9900 | 170697 |
|  Kandenko Co., Ltd. | 21900 | 142800 |
|  Kaneka Corp. | 11100 | 275091 |
|  Kaneko Seeds Co., Ltd. | 1300 | 14122 |
|  Kanematsu Corp. | 24900 | 283988 |
|  Kanematsu Electronics, Ltd. | 3100 | 104825 |
|  Kanemi Co., Ltd. | 100 | 2138 |
|  Kanto Denka Kogyo Co., Ltd. | 15000 | 104374 |
|  Kasai Kogyo Co., Ltd. (a) | 8600 | 8852 |
|  Katakura & Co-op Agri Corp. | 1600 | 19221 |
|  Katakura Industries Co., Ltd. | 7800 | 102695 |
|  Katitas Co., Ltd. | 11600 | 266790 |
|  Kato Sangyo Co., Ltd. | 7100 | 189831 |
|  Kato Works Co., Ltd. | 3800 | 20436 |
|  Kawada Technologies, Inc. | 1500 | 37260 |
|  Kawai Musical Instruments Manufacturing Co., Ltd. | 1600 | 31701 |
|  KeePer Technical Laboratory Co., Ltd. | 3000 | 81786 |
|  Keihanshin Building Co., Ltd. | 10600 | 103192 |
|  Keihin Co., Ltd./Minato-Ku Tokyo Japan | 2300 | 25190 |
|  KEIWA, Inc. (d) | 1200 | 14017 |
|  Keiyo Bank, Ltd. (The) | 33200 | 148452 |
|  Keiyo Co., Ltd. | 10600 | 72677 |
|  Kenko Mayonnaise Co., Ltd. | 4100 | 42643 |
|  KFC Holdings Japan, Ltd. | 4000 | 84009 |
|  KH Neochem Co., Ltd. (d) | 9400 | 192793 |
|  Ki-Star Real Estate Co., Ltd. | 3000 | 103865 |
|  Kibun Foods, Inc. | 1500 | 10862 |
|  Kimoto Co., Ltd. (d) | 14900 | 24487 |
|  Kimura Chemical Plants Co., Ltd. | 3300 | 18063 |
|  King Jim Co., Ltd. | 1400 | 9483 |
|  Kintetsu Department Store Co., Ltd. (a) | 400 | 7908 |
|  Kissei Pharmaceutical Co., Ltd. | 8100 | 159011 |
|  Kita-Nippon Bank, Ltd. (The) | 2900 | 46890 |
|  Kitagawa Corp. | 3100 | 26845 |
|  Kitano Construction Corp. | 1400 | 26758 |
|  Kitanotatsujin Corp. | 14100 | 29845 |
|  Kitz Corp. (d) | 19100 | 114659 |
|  Kiyo Bank, Ltd. (The) | 18700 | 222605 |
|  Koa Corp. | 8400 | 119046 |
|  Koatsu Gas Kogyo Co., Ltd. | 11100 | 53726 |
|  Kobe Electric Railway Co., Ltd. (a) (d) | 1400 | 33682 |
|  Kobe Steel, Ltd. | 78520 | 383368 |
|  Kohnan Shoji Co., Ltd. | 7600 | 198005 |
|  Kohsoku Corp. | 4000 | 52431 |
|  Koike Sanso Kogyo Co., Ltd. | 700 | 11072 |
|  Kojima Co., Ltd. | 7800 | 34982 |
|  Kokuyo Co., Ltd. (d) | 21700 | 307223 |
|  KOMAIHALTEC, Inc. | 1800 | 20263 |
|  Komatsu Seiren Co., Ltd. | 4200 | 24759 |

---

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Komatsu Wall Industry Co., Ltd. | 2700 | $37278 |
|  KOMEDA Holdings Co., Ltd. | 12600 | 238553 |
|  Komehyo Holdings Co., Ltd. | 1300 | 25691 |
|  Komeri Co., Ltd. | 9300 | 192696 |
|  Komori Corp. | 14100 | 86238 |
|  Konaka Co., Ltd. | 7300 | 18632 |
|  Kondotec, Inc. | 6900 | 52146 |
|  Konica Minolta, Inc. | 64100 | 255188 |
|  Konishi Co., Ltd. | 9900 | 125431 |
|  Konoike Transport Co., Ltd. | 6900 | 83754 |
|  Konoshima Chemical Co., Ltd. | 600 | 7176 |
|  Kosaido Holdings Co., Ltd. | 3700 | 59347 |
|  Kotobuki Spirits Co., Ltd. | 2600 | 151789 |
|  Kotobukiya Co., Ltd. | 500 | 41346 |
|  Kozo Keikaku Engineering, Inc. | 1200 | 25547 |
|  KPP Group Holdings Co., Ltd. | 3700 | 22080 |
|  Krosaki Harima Corp. | 1600 | 61676 |
|  KRS Corp. (d) | 4400 | 31840 |
|  KU Holdings Co., Ltd. | 6700 | 71033 |
|  Kumagai Gumi Co., Ltd. | 11000 | 219394 |
|  Kumiai Chemical Industry Co., Ltd. | 10995 | 75213 |
|  Kunimine Industries Co., Ltd. | 1200 | 7474 |
|  Kurabo Industries, Ltd. | 5600 | 92398 |
|  Kureha Corp. | 4700 | 285070 |
|  Kurimoto, Ltd. | 2800 | 37106 |
|  Kuriyama Holdings Corp. | 2300 | 14507 |
|  Kusuri no. Aoki Holdings Co., Ltd. | 3900 | 228167 |
|  KYB Corp. | 6400 | 164493 |
|  Kyoden Co., Ltd. | 6500 | 23267 |
|  Kyodo Printing Co., Ltd. | 2600 | 54358 |
|  Kyoei Steel, Ltd. | 6700 | 63507 |
|  Kyokuto Boeki Kaisha, Ltd. | 3600 | 37327 |
|  Kyokuto Kaihatsu Kogyo Co., Ltd. | 9800 | 107725 |
|  Kyokuto Securities Co., Ltd. | 7600 | 33142 |
|  Kyokuyo Co., Ltd. | 3500 | 101127 |
|  KYORIN Holdings, Inc. | 12800 | 166600 |
|  KYORITSU Co., Ltd. (a) | 6800 | 6268 |
|  Kyoritsu Maintenance Co., Ltd. | 4500 | 201697 |
|  Kyosan Electric Manufacturing Co., Ltd. | 16000 | 48589 |
|  Kyowa Electronic Instruments Co., Ltd. | 8000 | 21208 |
|  Kyowa Leather Cloth Co., Ltd. | 3300 | 12468 |
|  Kyudenko Corp. | 10600 | 261547 |
|  Kyushu Financial Group, Inc. | 80900 | 277694 |
|  LAC Co., Ltd. (d) | 5900 | 36590 |
|  Lacto Japan Co., Ltd. | 1400 | 23655 |
|  LEC, Inc. | 8800 | 60735 |
|  Leopalace21 Corp. (a) (d) | 39300 | 86233 |
|  Life Corp. | 4000 | 80014 |
|  LIFULL Co., Ltd. | 17000 | 29123 |
|  Like, Inc. | 2100 | 33290 |
|  Linical Co., Ltd. | 2600 | 13594 |
|  Link And Motivation, Inc. (d) | 8900 | 43205 |
|  Lintec Corp. | 10500 | 170268 |
|  LITALICO, Inc. | 4700 | 82605 |
|  Look Holdings, Inc. | 2200 | 40331 |
|  M&A Capital Partners Co., Ltd. (a) | 3600 | 126247 |
|  m-up Holdings, Inc. | 7400 | 80861 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Mabuchi Motor Co., Ltd. (d) | 13100 | 372473 |
|  Macnica Holdings, Inc. | 14550 | 344530 |
|  Macromill, Inc. | 13700 | 109981 |
|  Maeda Kosen Co., Ltd. (d) | 5100 | 120575 |
|  Maezawa Kasei Industries Co., Ltd. (d) | 4300 | 43184 |
|  Maezawa Kyuso Industries Co., Ltd. | 5800 | 40431 |
|  Makino Milling Machine Co., Ltd. | 7000 | 228677 |
|  Management Solutions Co., Ltd. (d) | 1800 | 45504 |
|  Mandom Corp. | 8900 | 99242 |
|  Mani, Inc. | 18500 | 284878 |
|  MarkLines Co., Ltd. | 3000 | 58448 |
|  Mars Group Holdings Corp. | 3600 | 66665 |
|  Marubun Corp. | 6100 | 44003 |
|  Marudai Food Co., Ltd. | 6700 | 72441 |
|  Marufuji Sheet Piling Co., Ltd. | 1300 | 19343 |
|  Maruha Nichiro Corp. | 12000 | 229462 |
|  Maruichi Steel Tube, Ltd. | 9300 | 189819 |
|  MARUKA FURUSATO Corp. (d) | 993 | 27108 |
|  Marumae Co., Ltd. (d) | 2500 | 29468 |
|  Marusan Securities Co., Ltd. | 19700 | 59946 |
|  Maruwa Co., Ltd. | 2600 | 306037 |
|  Maruyama Manufacturing Co., Inc. | 1500 | 17296 |
|  Maruzen CHI Holdings Co., Ltd. | 11900 | 29917 |
|  Maruzen Co. Ltd/Taito ward | 900 | 12377 |
|  Maruzen Showa Unyu Co., Ltd. | 3600 | 83229 |
|  Marvelous, Inc. | 9500 | 49502 |
|  Matching Service Japan Co., Ltd. | 1200 | 9175 |
|  Matsuda Sangyo Co., Ltd. | 4300 | 74546 |
|  Matsui Construction Co., Ltd. | 6400 | 27121 |
|  Matsui Securities Co., Ltd. | 31000 | 185135 |
|  Max Co., Ltd. | 8400 | 124768 |
|  Maxel,l Ltd. (d) | 15300 | 157100 |
|  Maxvalu Tokai Co., Ltd. | 3500 | 76175 |
|  MCJ Co., Ltd. (d) | 17300 | 124669 |
|  Mebuki Financial Group, Inc. | 23700 | 60307 |
|  MEC Co., Ltd. | 4200 | 65451 |
|  Media Do Co., Ltd. (a) | 2100 | 27356 |
|  Medical Data Vision Co., Ltd. (d) | 6800 | 46502 |
|  Medical System Network Co., Ltd. | 7000 | 22817 |
|  Medikit Co., Ltd. | 1300 | 25465 |
|  Medius Holdings Co., Ltd. | 1800 | 9469 |
|  MedPeer, Inc. (a) (d) | 2600 | 27220 |
|  Megachips Corp. | 4800 | 88824 |
|  Megmilk Snow Brand Co., Ltd. | 14000 | 192078 |
|  Meidensha Corp. | 10100 | 143851 |
|  Meiji Electric Industries Co., Ltd. | 1000 | 8024 |
|  Meiji Shipping Co., Ltd. (d) | 4300 | 22257 |
|  Meiko Electronics Co., Ltd. | 6300 | 115365 |
|  Meisei Industrial Co., Ltd. | 11600 | 68845 |
|  Meitec Corp. | 18900 | 341277 |
|  Meito Sangyo Co., Ltd. | 3000 | 37243 |
|  Meiwa Corp. | 8100 | 41034 |
|  Meiwa Estate Co., Ltd. | 5200 | 28092 |
|  Melco Holdings, Inc. | 1500 | 34511 |
|  Members Co., Ltd. | 1800 | 27406 |
|  Menicon Co., Ltd. | 17600 | 372337 |
|  Mercuria Holdings Co., Ltd. | 2100 | 9178 |

---

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Metaps, Inc. (a) | 1300 | $5599 |
|  MetaReal Corp. (a) (d) | 1400 | 12916 |
|  METAWATER Co., Ltd. | 3600 | 44158 |
|  Micronics Japan Co., Ltd. (d) | 6300 | 62468 |
|  Midac Holdings Co., Ltd. | 900 | 17558 |
|  Mie Kotsu Group Holdings, Inc. | 8600 | 31775 |
|  Mikuni Corp. | 7300 | 17849 |
|  Milbon Co., Ltd. | 6720 | 290201 |
|  MIMAKI ENGINEERING Co., Ltd. | 1700 | 7755 |
|  Mimasu Semiconductor Industry Co., Ltd. | 4400 | 77437 |
|  Ministop Co., Ltd. | 5400 | 58462 |
|  Miraial Co., Ltd. | 2900 | 31537 |
|  MIRAIT ONE Corp. | 24080 | 278695 |
|  Mirarth Holdings, Inc. | 28600 | 80144 |
|  Miroku Jyoho Service Co., Ltd. | 5500 | 60451 |
|  Mitani Corp. | 22700 | 222862 |
|  Mitani Sekisan Co., Ltd. | 2100 | 66678 |
|  Mito Securities Co., Ltd. | 19600 | 31617 |
|  Mitsuba Corp. | 12300 | 43568 |
|  Mitsubishi Kakoki Kaisha, Ltd. | 800 | 12476 |
|  Mitsubishi Logisnext Co., Ltd. | 8400 | 44153 |
|  Mitsubishi Logistics Corp. | 4800 | 110451 |
|  Mitsubishi Materials Corp. | 14400 | 226702 |
|  Mitsubishi Paper Mills, Ltd. | 8800 | 18877 |
|  Mitsubishi Pencil Co., Ltd. | 8200 | 89445 |
|  Mitsubishi Research Institute, Inc. | 2000 | 74354 |
|  Mitsubishi Shokuhin Co., Ltd. | 4800 | 113313 |
|  Mitsubishi Steel Manufacturing Co., Ltd. | 4400 | 33219 |
|  Mitsuboshi Belting, Ltd. | 6700 | 174482 |
|  Mitsui DM Sugar Holdings Co., Ltd. | 6100 | 92970 |
|  Mitsui Engineering & Shipbuilding Co., Ltd. (a) | 24900 | 72523 |
|  Mitsui Matsushima Co., Ltd. (d) | 4100 | 92880 |
|  Mitsui Mining & Smelting Co., Ltd. | 17000 | 398521 |
|  Mitsui-Soko Holdings Co., Ltd. | 6100 | 165833 |
|  Mitsuuroko Group Holdings Co., Ltd. | 10100 | 86938 |
|  Mixi, Inc. | 11700 | 218327 |
|  Miyaji Engineering Group, Inc. | 1800 | 49228 |
|  Miyazaki Bank, Ltd. (The) | 5400 | 101875 |
|  Miyoshi Oil & Fat Co., Ltd. (d) | 2800 | 20105 |
|  Mizuho Leasing Co., Ltd. | 8700 | 219697 |
|  Mizuho Medy Co., Ltd. | 500 | 14284 |
|  Mizuno Corp. | 5800 | 124185 |
|  Mochida Pharmaceutical Co., Ltd. | 4700 | 124229 |
|  Monex Group, Inc. (d) | 45500 | 141664 |
|  Money Partners Group Co., Ltd. | 7100 | 15685 |
|  Monogatari Corp. (The) (d) | 2600 | 129526 |
|  MORESCO Corp. | 2500 | 22197 |
|  Morinaga & Co., Ltd. | 8800 | 262982 |
|  Morinaga Milk Industry Co., Ltd. | 8800 | 334771 |
|  Moriroku Holdings Co., Ltd. | 800 | 10293 |
|  Morita Holdings Corp. | 11200 | 99048 |
|  Morito Co., Ltd. | 3400 | 19054 |
|  Morozoff, Ltd. | 1800 | 48201 |
|  Mortgage Service Japan, Ltd. | 1200 | 8042 |
|  Mory Industries, Inc. | 1600 | 33409 |
|  Mr. Max Holdings, Ltd. | 10500 | 52793 |
|  MRK Holdings, Inc. (d) | 15600 | 12690 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Mugen Estate Co., Ltd. | 3300 | 12244 |
|  Murakami Corp. | 2500 | 46337 |
|  Musashi Seimitsu Industry Co., Ltd. | 13400 | 157507 |
|  Musashino Bank, Ltd. (The) | 9500 | 149633 |
|  Mutoh Holdings Co., Ltd. | 900 | 10584 |
|  NAC Co., Ltd. | 3600 | 25608 |
|  Nachi-Fujikoshi Corp. | 4200 | 114823 |
|  Nafco Co., Ltd. | 2600 | 30755 |
|  Nagano Bank, Ltd. (The) | 3500 | 35650 |
|  Nagano Keiki Co., Ltd. | 4200 | 36021 |
|  Nagase & Co., Ltd. | 30600 | 461658 |
|  Nagatanien Holdings Co., Ltd. | 4000 | 61478 |
|  Nagawa Co., Ltd. | 1500 | 84870 |
|  Naigai Trans Line, Ltd. | 2100 | 33748 |
|  Nakabayashi Co., Ltd. | 5500 | 20015 |
|  Nakamuraya Co., Ltd. | 1600 | 37547 |
|  Nakanishi, Inc. | 16800 | 327128 |
|  Nakano Corp. | 4000 | 9532 |
|  Nakayama Steel Works, Ltd. | 6300 | 38771 |
|  Nakayamafuku Co., Ltd. | 2000 | 4863 |
|  Namura Shipbuilding Co., Ltd. (a) | 18956 | 55623 |
|  Nankai Electric Railway Co., Ltd. | 4700 | 101875 |
|  Nanto Bank, Ltd. (The) | 9200 | 179536 |
|  Narasaki Sangyo Co., Ltd. | 800 | 10706 |
|  Natori Co., Ltd. | 2600 | 40693 |
|  NEC Capital Solutions, Ltd. | 3800 | 61907 |
|  NEC Networks & System Integration Corp. | 11000 | 137231 |
|  NET One Systems Co., Ltd. | 14800 | 384714 |
|  Neturen Co., Ltd. | 9800 | 48718 |
|  New Art Holdings Co., Ltd. | 1235 | 14611 |
|  New Japan Chemical Co., Ltd. | 9900 | 18195 |
|  Nextage Co., Ltd. | 12300 | 237321 |
|  NexTone, Inc. (a) | 700 | 23563 |
|  NF Holdings Corp. | 1600 | 10751 |
|  NHK Spring Co., Ltd. | 49600 | 315748 |
|  Nicca Chemical Co., Ltd. | 1400 | 8817 |
|  Nice Corp. | 2300 | 23888 |
|  Nichia Steel Works, Ltd. | 9100 | 17049 |
|  Nichias Corp. | 16500 | 296838 |
|  Nichiban Co., Ltd. | 4000 | 56399 |
|  Nichicon Corp. | 16400 | 151188 |
|  Nichiden Corp. | 5200 | 68164 |
|  Nichiha Corp. | 7900 | 157874 |
|  Nichimo Co., Ltd. | 1600 | 35090 |
|  Nichireki Co., Ltd. | 8200 | 78104 |
|  Nichirin Co., Ltd. | 1400 | 18926 |
|  Nihon Chouzai Co., Ltd. | 3320 | 30714 |
|  Nihon Dempa Kogyo Co., Ltd. | 3300 | 39031 |
|  Nihon Dengi Co., Ltd. | 400 | 9477 |
|  Nihon Flush Co., Ltd. | 6000 | 39793 |
|  Nihon House Holdings Co., Ltd. | 15000 | 41487 |
|  Nihon Kagaku Sangyo Co., Ltd. | 3000 | 21861 |
|  Nihon Kohden Corp. | 8800 | 214719 |
|  Nihon Nohyaku Co., Ltd. | 14000 | 76249 |
|  Nihon Parkerizing Co., Ltd. | 24500 | 173119 |
|  Nihon Plast Co., Ltd. | 4500 | 13769 |
|  Nihon Tokushu Toryo Co., Ltd. | 2900 | 18794 |

---

*See accompanying notes to financial statements.* 

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Nihon Yamamura Glass Co., Ltd. (a) | 3800 | $15919 |
|  Nikkiso Co., Ltd. (d) | 16800 | 121125 |
|  Nikko Co., Ltd. | 9000 | 42209 |
|  Nikkon Holdings Co., Ltd. | 17700 | 313738 |
|  Nippn Corp. | 14300 | 175851 |
|  Nippon Air Conditioning Services Co., Ltd. | 9600 | 49863 |
|  Nippon Aqua Co., Ltd. | 3000 | 18784 |
|  Nippon Beet Sugar Manufacturing Co., Ltd. | 3800 | 48205 |
|  Nippon Carbide Industries Co., Inc. | 2300 | 21985 |
|  Nippon Carbon Co., Ltd. (d) | 3000 | 95537 |
|  Nippon Ceramic Co., Ltd. | 400 | 7190 |
|  Nippon Chemi-Con Corp. (a) | 5900 | 69077 |
|  Nippon Chemical Industrial Co., Ltd. | 2400 | 31701 |
|  Nippon Coke & Engineering Co., Ltd. | 61100 | 39566 |
|  Nippon Computer Dynamics Co., Ltd. | 1700 | 8802 |
|  Nippon Concept Corp. | 1500 | 16683 |
|  Nippon Concrete Industries Co., Ltd. (a) | 14000 | 23387 |
|  Nippon Denko Co., Ltd. (d) | 38165 | 102005 |
|  Nippon Densetsu Kogyo Co., Ltd. (d) | 10300 | 121782 |
|  Nippon Dry-Chemical Co., Ltd. | 1000 | 11105 |
|  Nippon Electric Glass Co., Ltd. (d) | 17600 | 314244 |
|  Nippon Felt Co., Ltd. (d) | 8600 | 26406 |
|  Nippon Filcon Co., Ltd. | 5200 | 17976 |
|  Nippon Fine Chemical Co., Ltd. | 4300 | 74842 |
|  Nippon Gas Co., Ltd. | 29600 | 466039 |
|  Nippon Hume Corp. | 6700 | 32921 |
|  Nippon Kayaku Co., Ltd. | 25700 | 221015 |
|  Nippon Kodoshi Corp. | 1600 | 22778 |
|  Nippon Koei Co., Ltd. | 4200 | 104249 |
|  Nippon Light Metal Holdings Co., Ltd. | 16500 | 188578 |
|  Nippon Paper Industries Co., Ltd. (a) | 26600 | 197583 |
|  Nippon Parking Development Co., Ltd. | 65100 | 152973 |
|  Nippon Pillar Packing Co., Ltd. | 6500 | 133896 |
|  Nippon Piston Ring Co., Ltd. | 3200 | 29579 |
|  Nippon Rietec Co., Ltd. | 3700 | 23660 |
|  Nippon Road Co., Ltd. (The) | 900 | 40309 |
|  Nippon Seiki Co., Ltd. | 15000 | 89311 |
|  Nippon Seisen Co., Ltd. | 700 | 22272 |
|  Nippon Sharyo, Ltd. | 2600 | 38446 |
|  Nippon Sheet Glass Co., Ltd. (a) | 10700 | 46123 |
|  Nippon Shokubai Co., Ltd. | 2600 | 103793 |
|  Nippon Signal Co., Ltd. | 17500 | 137446 |
|  Nippon Soda Co., Ltd. | 6700 | 219671 |
|  Nippon Steel Trading Corp. | 4596 | 323697 |
|  Nippon Thompson Co., Ltd. | 15700 | 61701 |
|  Nippon Yakin Kogyo Co., Ltd. | 4100 | 128786 |
|  Nipro Corp. | 39400 | 308101 |
|  Nishi-Nippon Financial Holdings, Inc. | 35700 | 261206 |
|  Nishi-Nippon Railroad Co., Ltd. | 15900 | 298017 |
|  Nishikawa Rubber Co., Ltd. | 1200 | 10073 |
|  Nishimatsu Construction Co., Ltd. | 15600 | 463219 |
|  Nishimatsuya Chain Co., Ltd. (d) | 12500 | 147606 |
|  Nishimoto Co., Ltd. (d) | 1400 | 36688 |
|  Nishio Rent All Co., Ltd. | 6000 | 141659 |
|  Nissan Shatai Co., Ltd. | 12600 | 79183 |
|  Nissan Tokyo Sales Holdings Co., Ltd. | 11000 | 24383 |
|  Nissei ASB Machine Co., Ltd. | 2300 | 74373 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Nissei Plastic Industrial Co., Ltd. | 6000 | 42183 |
|  Nissha Co., Ltd. (d) | 14100 | 196515 |
|  Nisshin Group Holdings Co., Ltd. | 12300 | 40115 |
|  Nisshin Oillio Group, Ltd. (The) | 7400 | 184501 |
|  Nisshinbo Holdings, Inc. (d) | 39820 | 292899 |
|  Nissin Corp. | 4300 | 68772 |
|  Nissin Electric Co., Ltd. | 14800 | 141265 |
|  Nissin Sugar Co., Ltd. | 2400 | 33956 |
|  Nisso Corp. | 1400 | 6153 |
|  Nissui Corp. | 80800 | 337910 |
|  Nitta Corp. | 6800 | 144447 |
|  Nitta Gelatin, Inc. | 4500 | 29689 |
|  NITTAN Corp. | 6300 | 12555 |
|  Nittetsu Mining Co., Ltd. | 3400 | 82011 |
|  Nitto Boseki Co., Ltd. | 4700 | 67374 |
|  Nitto Fuji Flour Milling Co., Ltd. | 800 | 26894 |
|  Nitto Kogyo Corp. | 9000 | 161052 |
|  Nitto Kohki Co., Ltd. | 4100 | 46666 |
|  Nitto Seiko Co., Ltd. | 8900 | 33144 |
|  Nittoc Construction Co., Ltd. | 7450 | 52292 |
|  NJS Co., Ltd. | 2200 | 34083 |
|  Noevir Holdings Co., Ltd. | 3200 | 141136 |
|  Nohmi Bosai, Ltd. | 7000 | 83772 |
|  Nojima Corp. | 18000 | 195664 |
|  NOK Corp. | 17100 | 151173 |
|  Nomura Micro Science Co., Ltd. | 1300 | 40636 |
|  Noritake Co., Ltd. | 2800 | 85145 |
|  Noritsu Koki Co., Ltd. (d) | 5200 | 93557 |
|  Noritz Corp. (d) | 10600 | 115569 |
|  North Pacific Bank, Ltd. | 74900 | 145221 |
|  NS Tool Co., Ltd. (d) | 4800 | 37661 |
|  NS United Kaiun Kaisha, Ltd. | 3300 | 97404 |
|  NSD Co., Ltd. | 18540 | 319706 |
|  NSW, Inc. | 1900 | 29241 |
|  NTN Corp. | 124600 | 247642 |
|  Oat Agrio Co., Ltd. | 400 | 4488 |
|  Obara Group, Inc. (d) | 3800 | 104209 |
|  Oenon Holdings, Inc. | 12300 | 23927 |
|  Ogaki Kyoritsu Bank, Ltd. (The) | 10900 | 155251 |
|  Ohara, Inc. | 1600 | 12905 |
|  Ohashi Technica, Inc. | 3800 | 40616 |
|  Ohba Co., Ltd. | 4600 | 22919 |
|  Ohsho Food Service Corp. | 3600 | 163374 |
|  OIE Sangyo Co., Ltd. | 800 | 5583 |
|  Oiles Corp. | 8000 | 88539 |
|  Oisix ra daichi, Inc. (a) (d) | 5600 | 94531 |
|  Oita Bank, Ltd. (The) | 5000 | 77707 |
|  Okabe Co., Ltd. | 12500 | 66178 |
|  Okada Aiyon Corp. (d) | 1900 | 21478 |
|  Okamoto Industries, Inc. | 3200 | 89791 |
|  Okamoto Machine Tool Works, Ltd. | 1400 | 45984 |
|  Okamura Corp. | 17500 | 187765 |
|  Okasan Securities Group, Inc. | 39200 | 113555 |
|  Oki Electric Industry Co., Ltd. | 25700 | 139190 |
|  Okinawa Cellular Telephone Co. | 8000 | 176698 |
|  Okinawa Electric Power Co., Inc. (The) (a) | 14827 | 113783 |
|  Okinawa Financial Group, Inc. | 7360 | 130415 |

---

*See accompanying notes to financial statements.* 

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  OKUMA Corp. | 7800 | $275775 |
|  Okumura Corp. | 8200 | 185448 |
|  Okura Industrial Co., Ltd. | 3000 | 41644 |
|  Okuwa Co., Ltd. | 7400 | 50007 |
|  Onoken Co., Ltd. | 4300 | 47412 |
|  Onward Holdings Co., Ltd. | 31800 | 75088 |
|  Optex Group Co., Ltd. (d) | 6800 | 91930 |
|  Optim Corp. (a) | 4200 | 32400 |
|  Optorun Co., Ltd. | 5500 | 92455 |
|  Organo Corp. | 9200 | 204454 |
|  Oricon, Inc. | 1200 | 7754 |
|  Orient Corp. | 11670 | 102544 |
|  Oriental Shiraishi Corp. | 39400 | 84905 |
|  Origin Co., Ltd. | 3400 | 31382 |
|  Oro Co., Ltd. (d) | 2100 | 30294 |
|  Osaka Organic Chemical Industry, Ltd. | 4100 | 59607 |
|  Osaka Soda Co., Ltd. | 5000 | 145869 |
|  Osaka Steel Co., Ltd. | 5000 | 44293 |
|  Osaki Electric Co., Ltd. | 14400 | 57110 |
|  OSG Corp. | 22400 | 309130 |
|  OUG Holdings, Inc. | 700 | 12712 |
|  Outsourcing, Inc. | 32100 | 231741 |
|  Oyo Corp. (d) | 6400 | 110330 |
|  Ozu Corp. | 600 | 7040 |
|  Pacific Industrial Co., Ltd. | 13700 | 103855 |
|  Pacific Metals Co., Ltd. (a) | 5100 | 73044 |
|  Pack Corp. (The) (d) | 4600 | 83812 |
|  Pal Group Holdings Co., Ltd. | 4300 | 81577 |
|  PALTAC Corp. | 2900 | 101553 |
|  Paraca, Inc. | 300 | 4261 |
|  Paramount Bed Holdings Co., Ltd. | 12000 | 233419 |
|  Paris Miki Holdings, Inc. | 10600 | 21372 |
|  Pasona Group, Inc. | 6200 | 87815 |
|  PC Depot Corp. | 7000 | 14504 |
|  PCI Holdings, Inc. | 1800 | 13309 |
|  Pegasus Sewing Machine Manufacturing Co., Ltd. | 5400 | 31586 |
|  Penta-Ocean Construction Co., Ltd. | 69600 | 325110 |
|  People Dreams & Technologies Group Co., Ltd. | 1400 | 18898 |
|  PeptiDream, Inc. (a) | 10300 | 162872 |
|  Pharma Foods International Co., Ltd. (d) | 900 | 9037 |
|  PIA Corp. (a) | 500 | 11926 |
|  Pickles Holdings Co., Ltd. | 2600 | 22345 |
|  Pigeon Corp. (d) | 31900 | 524421 |
|  Pilot Corp. (d) | 5300 | 193133 |
|  Piolax, Inc. | 9700 | 124830 |
|  Pole To Win Holdings, Inc. | 7900 | 49244 |
|  PR Times, Inc. (a) (d) | 700 | 12516 |
|  Premier Anti-Aging Co., Ltd. (a) (d) | 500 | 5770 |
|  Premium Group Co., Ltd. | 7800 | 102715 |
|  Premium Water Holdings, Inc. | 500 | 9372 |
|  Press Kogyo Co., Ltd. | 29900 | 96117 |
|  Pressance Corp. | 4000 | 46890 |
|  Prestige International, Inc. | 27100 | 149140 |
|  Prima Meat Packers, Ltd. | 7500 | 125031 |
|  Pro-Ship, Inc. | 2300 | 26319 |
|  Procrea Holdings, Inc. | 8721 | 146210 |
|  Pronexus, Inc. | 5100 | 37099 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Proto Corp. | 8800 | 82455 |
|  PS Mitsubishi Construction Co., Ltd. | 8800 | 40775 |
|  Punch Industry Co., Ltd. | 2700 | 7895 |
|  QB Net Holdings Co., Ltd. | 1400 | 14218 |
|  Qol Holdings Co., Ltd. | 7400 | 65495 |
|  Quick Co., Ltd. | 4000 | 63780 |
|  Raccoon Holdings, Inc. | 4100 | 33753 |
|  Raito Kogyo Co., Ltd. | 13400 | 192400 |
|  Raiznext Corp. | 11000 | 110272 |
|  RaQualia Pharma, Inc. (a) | 1600 | 14904 |
|  Rasa Industries, Ltd. | 2600 | 36287 |
|  Raysum Co., Ltd. | 4800 | 47733 |
|  Relia, Inc. | 11500 | 87292 |
|  Remixpoint, Inc. (a) (d) | 3600 | 8170 |
|  Rengo Co., Ltd. | 50000 | 343477 |
|  RENOVA, Inc. (a) | 5100 | 90883 |
|  Resorttrust, Inc. | 25500 | 454635 |
|  Restar Holdings Corp. | 6900 | 107296 |
|  Retail Partners Co., Ltd. | 4300 | 43371 |
|  Rheon Automatic Machinery Co., Ltd. (d) | 5000 | 40454 |
|  Rhythm Co., Ltd. | 2500 | 32142 |
|  Riberesute Corp. (d) | 4300 | 24783 |
|  Ricoh Leasing Co., Ltd. | 4500 | 129823 |
|  Ride On Express Holdings Co., Ltd. | 1700 | 13906 |
|  Right On Co., Ltd. (a) | 5900 | 27149 |
|  Riken Corp. | 2500 | 42755 |
|  Riken Keiki Co., Ltd. | 4600 | 154142 |
|  Riken Technos Corp. | 9900 | 35946 |
|  Riken Vitamin Co., Ltd. | 5400 | 78589 |
|  Rion Co., Ltd. | 2200 | 30674 |
|  Riso Kyoiku Co., Ltd. | 34770 | 96338 |
|  Rock Field Co., Ltd. | 6600 | 75424 |
|  Rokko Butter Co., Ltd. (d) | 3600 | 35207 |
|  Roland Corp. | 2800 | 74218 |
|  Roland DG Corp. | 3600 | 75815 |
|  Rorze Corp. (d) | 2500 | 135333 |
|  Round One Corp. | 37800 | 137080 |
|  RS Technologies Co., Ltd. | 2800 | 74507 |
|  Ryobi, Ltd. | 6200 | 53985 |
|  Ryoden Corp. | 4500 | 57700 |
|  Ryosan Co., Ltd. | 7000 | 150162 |
|  S Foods, Inc. | 4500 | 101780 |
|  S&B Foods, Inc. | 1500 | 39711 |
|  S-Pool, Inc. | 18000 | 117135 |
|  Sac's Bar Holdings, Inc. | 6850 | 40337 |
|  Sagami Rubber Industries Co., Ltd. | 1800 | 10070 |
|  Saibu Gas Holdings Co., Ltd. | 8000 | 103600 |
|  Saison Information Systems Co., Ltd. | 600 | 8047 |
|  Sakai Chemical Industry Co., Ltd. | 4700 | 63241 |
|  Sakai Heavy Industries, Ltd. | 1400 | 36797 |
|  Sakai Moving Service Co., Ltd. | 2800 | 92252 |
|  Sakata INX Corp. (d) | 13000 | 103753 |
|  Sakura Internet, Inc. | 4400 | 16693 |
|  Sala Corp. | 15800 | 87506 |
|  SAMTY Co., Ltd. | 9300 | 150513 |
|  San Holdings, Inc. | 2800 | 36356 |
|  San ju San Financial Group, Inc. | 7870 | 95124 |

---

*See accompanying notes to financial statements.* 

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  San-A Co., Ltd. | 5700 | $186640 |
|  San-Ai Oil Co., Ltd. | 20000 | 188436 |
|  San-In Godo Bank, Ltd. (The) | 44900 | 265162 |
|  Sanden Corp. (a) | 4400 | 6535 |
|  Sanei Architecture Planning Co., Ltd. | 2800 | 31645 |
|  Sangetsu Corp. | 12600 | 205154 |
|  Sanken Electric Co., Ltd. | 4200 | 205708 |
|  Sanki Engineering Co., Ltd. | 13000 | 153155 |
|  Sanko Metal Industrial Co., Ltd. | 1000 | 23293 |
|  Sankyo Co., Ltd. | 6500 | 266143 |
|  Sankyo Frontier Co., Ltd. | 1000 | 23870 |
|  Sankyo Seiko Co., Ltd. | 13400 | 48229 |
|  Sankyo Tateyama, Inc. | 8200 | 32718 |
|  Sankyu, Inc. | 9000 | 327724 |
|  Sanoh Industrial Co., Ltd. | 6300 | 29029 |
|  Sansei Technologies, Inc. | 800 | 4830 |
|  Sansha Electric Manufacturing Co., Ltd. | 2700 | 17579 |
|  Sanshin Electronics Co., Ltd. | 2400 | 43837 |
|  Sanyo Chemical Industries, Ltd. | 3700 | 114009 |
|  Sanyo Denki Co., Ltd. | 2500 | 108740 |
|  Sanyo Electric Railway Co., Ltd. | 4800 | 77784 |
|  Sanyo Industries, Ltd. | 1300 | 17114 |
|  Sanyo Shokai, Ltd. | 2500 | 26585 |
|  Sanyo Special Steel Co., Ltd. | 6400 | 104168 |
|  Sanyo Trading Co., Ltd. | 5300 | 45057 |
|  Sapporo Holdings, Ltd. (d) | 6300 | 156819 |
|  Sata Construction Co., Ltd. | 2600 | 8399 |
|  Sato Holdings Corp. | 8100 | 115857 |
|  Sato Shoji Corp. | 4100 | 37880 |
|  Satori Electric Co., Ltd. | 4300 | 41892 |
|  Sawai Group Holdings Co., Ltd. | 7500 | 233915 |
|  Saxa Holdings, Inc. | 2400 | 21608 |
|  SB Technology, Corp. | 3000 | 42428 |
|  SBI Insurance Group Co., Ltd. (a) | 1400 | 10218 |
|  SBS Holdings, Inc. (d) | 6200 | 130252 |
|  Scala, Inc. (d) | 3200 | 17265 |
|  Scroll Corp. | 8000 | 43172 |
|  SEC Carbon, Ltd. | 200 | 10763 |
|  Seed Co., Ltd. | 1700 | 6507 |
|  Seika Corp. | 3300 | 38959 |
|  Seikagaku Corp. | 9800 | 66537 |
|  Seikitokyu Kogyo Co., Ltd. | 10900 | 65247 |
|  Seiko Group Corp. | 8800 | 205932 |
|  Seiko PMC Corp. | 3500 | 14184 |
|  Seikoh Giken Co. Ltd. | 700 | 8963 |
|  Seino Holdings Co., Ltd. | 13900 | 123110 |
|  Seiren Co., Ltd. | 13300 | 243534 |
|  Sekisui Jushi Corp. | 9100 | 129259 |
|  Sekisui Kasei Co., Ltd. | 8100 | 23833 |
|  SEMITEC Corp. | 400 | 25856 |
|  Senko Group Holdings Co., Ltd. | 31000 | 227890 |
|  Senshu Electric Co., Ltd. | 4800 | 120555 |
|  Senshu Ikeda Holdings, Inc. | 72800 | 139629 |
|  Senshukai Co., Ltd. (a) (d) | 11000 | 32217 |
|  SERAKU Co., Ltd. | 700 | 6090 |
|  Seria Co., Ltd. | 11900 | 260067 |
|  Seven Bank, Ltd. | 33800 | 67470 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Shibaura Electronics Co., Ltd. | 2800 | 104808 |
|  Shibaura Machine Co., Ltd. | 7200 | 141786 |
|  Shibaura Mechatronics Corp. | 900 | 68461 |
|  Shibusawa Warehouse Co., Ltd. (The) | 3500 | 55151 |
|  Shibuya Corp. (d) | 4400 | 76273 |
|  Shidax Corp. | 3000 | 12457 |
|  Shiga Bank, Ltd. (The) | 12100 | 241729 |
|  Shikibo, Ltd. | 4700 | 34516 |
|  Shikoku Bank, Ltd. (The) | 12000 | 89051 |
|  Shikoku Chemicals Corp. (d) | 10900 | 108185 |
|  Shikoku Electric Power Co., Inc. (a) | 40900 | 237153 |
|  Shima Seiki Manufacturing, Ltd. | 8700 | 121205 |
|  Shimizu Bank, Ltd. (The) | 3400 | 40149 |
|  Shimojima Co., Ltd. | 4200 | 29852 |
|  Shin Nippon Air Technologies Co., Ltd. | 2100 | 29995 |
|  Shin Nippon Biomedical Laboratories, Ltd. (d) | 5300 | 90479 |
|  Shin-Etsu Polymer Co., Ltd. | 13200 | 112492 |
|  Shinagawa Refractories Co., Ltd. | 2000 | 58751 |
|  Shindengen Electric Manufacturing Co., Ltd. | 2800 | 63867 |
|  Shinki Bus Co., Ltd. (d) | 900 | 23065 |
|  Shinko Shoji Co., Ltd. | 9800 | 87769 |
|  Shinmaywa Industries, Ltd. | 16400 | 130706 |
|  Shinnihon Corp. | 8300 | 46785 |
|  Shinnihonseiyaku Co., Ltd. | 1100 | 11502 |
|  Shinsho Corp. | 1400 | 54631 |
|  Shinwa Co., Ltd. | 6100 | 72823 |
|  Ship Healthcare Holdings, Inc. | 16600 | 339604 |
|  Shizuki Electric Co., Inc. | 8000 | 27512 |
|  Shizuoka Gas Co., Ltd. (d) | 17600 | 147878 |
|  Shoei Co., Ltd. | 6300 | 246151 |
|  Shoei Foods Corp. | 3400 | 101359 |
|  Shofu, Inc. | 3500 | 60762 |
|  Showa Sangyo Co., Ltd. | 5700 | 108732 |
|  SIGMAXYZ Holdings, Inc. | 7200 | 69850 |
|  Siix Corp. (d) | 9600 | 92166 |
|  Silver Life Co., Ltd. | 900 | 12047 |
|  Sinanen Holdings Co., Ltd. | 2900 | 85443 |
|  Sinfonia Technology Co., Ltd. | 7400 | 83075 |
|  Sinko Industries, Ltd. | 6400 | 70306 |
|  Sintokogio, Ltd. | 13500 | 66890 |
|  SK-Electronics Co., Ltd. | 2700 | 23259 |
|  SKY Perfect JSAT Holdings, Inc. | 43700 | 160107 |
|  Smaregi, Inc. (a) (d) | 1200 | 19436 |
|  SMK Corp. | 1700 | 29711 |
|  SMS Co., Ltd. | 12200 | 311673 |
|  Snow Peak, Inc. (d) | 5400 | 96695 |
|  SNT Corp. | 7300 | 12236 |
|  Soda Nikka Co., Ltd. | 7000 | 38070 |
|  Sodick Co., Ltd. | 14500 | 78265 |
|  Soft99 Corp. | 5100 | 43857 |
|  Softcreate Holdings Corp. | 2300 | 54354 |
|  Software Service, Inc. | 1100 | 78865 |
|  Soiken Holdings, Inc. | 2100 | 4378 |
|  Soken Chemical & Engineering Co. Ltd. | 700 | 9194 |
|  Solasto Corp. | 12800 | 69568 |
|  Soliton Systems KK | 2500 | 20185 |
|  Solxyz Co., Ltd. | 1400 | 3808 |

---

*See accompanying notes to financial statements.* 

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Sotetsu Holdings, Inc. | 12100 | $203979 |
|  Sotoh Co., Ltd. | 3100 | 19556 |
|  Space Co., Ltd. | 5060 | 33679 |
|  Sparx Group Co., Ltd. | 5840 | 74172 |
|  SPK Corp. | 3400 | 35539 |
|  Sprix, Inc. | 1300 | 8906 |
|  SRA Holdings | 3100 | 71330 |
|  SRE Holdings Corp. (a) | 1900 | 46902 |
|  ST Corp. | 4100 | 47078 |
|  St-Care Holding Corp. | 2300 | 14728 |
|  St. Marc Holdings Co., Ltd. | 5100 | 65375 |
|  Star Mica Holdings Co., Ltd. | 6000 | 32083 |
|  Star Micronics Co., Ltd. (d) | 9200 | 112433 |
|  Starts Corp., Inc. | 8700 | 171558 |
|  Starzen Co., Ltd. | 4400 | 69247 |
|  Stella Chemifa Corp. | 3600 | 67222 |
|  Step Co., Ltd. | 3300 | 44999 |
|  Strike Co., Ltd. | 2200 | 75226 |
|  Studio Alice Co., Ltd. | 2900 | 45469 |
|  Subaru Enterprise Co., Ltd. | 100 | 7181 |
|  Sugimoto & Co., Ltd. | 3000 | 44752 |
|  Sumida Corp. | 8600 | 88739 |
|  Suminoe Textile Co., Ltd. (d) | 2300 | 32123 |
|  Sumitomo Bakelite Co., Ltd. | 7900 | 232630 |
|  Sumitomo Densetsu Co., Ltd. | 5400 | 99748 |
|  Sumitomo Mitsui Construction Co., Ltd. | 48760 | 154897 |
|  Sumitomo Osaka Cement Co., Ltd. | 9900 | 243953 |
|  Sumitomo Precision Products Co., Ltd. | 1200 | 33230 |
|  Sumitomo Riko Co., Ltd. | 11500 | 52630 |
|  Sumitomo Seika Chemicals Co., Ltd. | 2700 | 83811 |
|  Sumitomo Warehouse Co., Ltd. (The) | 16500 | 244273 |
|  Sun Frontier Fudousan Co., Ltd. | 10100 | 84174 |
|  Sun-Wa Technos Corp. | 3900 | 47443 |
|  Suncall Corp. | 8300 | 40022 |
|  Suruga Bank, Ltd. | 39500 | 127029 |
|  Suzuki Co., Ltd. | 3300 | 20915 |
|  SWCC Showa Holdings Co., Ltd. | 7600 | 103346 |
|  System Information Co., Ltd. | 2800 | 18379 |
|  System Research Co., Ltd. | 1200 | 19353 |
|  Systems Engineering Consultants Co., Ltd. | 600 | 12679 |
|  Systena Corp. (d) | 71400 | 223487 |
|  Syuppin Co., Ltd. | 6100 | 57041 |
|  T Hasegawa Co., Ltd. | 6500 | 143337 |
|  T RAD Co., Ltd. | 1900 | 37391 |
|  T&K Toka Co., Ltd. | 7200 | 64460 |
|  T-Gaia Corp. | 6000 | 74183 |
|  Tachi-S Co., Ltd. | 10300 | 86459 |
|  Tachibana Eletech Co., Ltd. | 5640 | 75824 |
|  Tachikawa Corp. (d) | 3100 | 26644 |
|  Tadano, Ltd. (d) | 31400 | 216760 |
|  Taihei Dengyo Kaisha, Ltd. | 4500 | 111167 |
|  Taiheiyo Cement Corp. | 15000 | 233274 |
|  Taiheiyo Kouhatsu, Inc. | 2100 | 12558 |
|  Taiho Kogyo Co., Ltd. | 6400 | 29633 |
|  Taikisha, Ltd. | 8100 | 205758 |
|  Taiko Bank, Ltd. (The) | 3100 | 29379 |
|  Taisei Lamick Co., Ltd. | 2200 | 49714 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Taiyo Holdings Co., Ltd. | 9800 | 166973 |
|  Takachiho Koheki Co., Ltd. | 400 | 6685 |
|  Takamatsu Construction Group Co., Ltd. | 5400 | 78441 |
|  Takamiya Co., Ltd. | 5200 | 14723 |
|  Takano Co., Ltd. (d) | 4600 | 23586 |
|  Takaoka Toko Co., Ltd. | 4365 | 58894 |
|  Takara & Co., Ltd. | 1300 | 20262 |
|  Takara Bio, Inc. | 11100 | 144286 |
|  Takara Holdings, Inc. | 36400 | 289723 |
|  Takara Standard Co., Ltd. | 9300 | 97283 |
|  Takasago International Corp. | 4200 | 81423 |
|  Takasago Thermal Engineering Co., Ltd. | 11100 | 150669 |
|  Takashima & Co., Ltd. | 2500 | 55931 |
|  Takashimaya Co., Ltd. (d) | 20100 | 281810 |
|  Takemoto Yohki Co., Ltd. (d) | 1200 | 6728 |
|  Takeuchi Manufacturing Co., Ltd. | 10400 | 228270 |
|  Takisawa Machine Tool Co., Ltd. | 2200 | 17570 |
|  Takuma Co., Ltd. | 12900 | 120155 |
|  Tama Home Co., Ltd. | 4800 | 91710 |
|  Tamron Co., Ltd. | 6000 | 135980 |
|  Tamura Corp. (d) | 26000 | 138950 |
|  Tanseisha Co., Ltd. | 11750 | 63994 |
|  Tatsuta Electric Wire and Cable Co., Ltd. | 14200 | 76891 |
|  Tayca Corp. | 5200 | 46101 |
|  Tazmo Co., Ltd. | 2500 | 29305 |
|  TBK Co., Ltd. (a) | 8000 | 14327 |
|  TBS Holdings, Inc. | 4100 | 47565 |
|  TDC Soft, Inc. | 4900 | 54719 |
|  TechMatrix Corp. | 9800 | 135219 |
|  TECHNO ASSOCIE Co., Ltd. | 300 | 2687 |
|  Techno Medica Co., Ltd. | 2400 | 31598 |
|  Techno Ryowa, Ltd. | 4800 | 32616 |
|  Teijin, Ltd. | 8500 | 82826 |
|  Teikoku Electric Manufacturing Co., Ltd. | 6000 | 104989 |
|  Teikoku Sen-I Co., Ltd. (d) | 4900 | 56278 |
|  Teikoku Tsushin Kogyo Co., Ltd. | 3000 | 31710 |
|  Tekken Corp. | 2700 | 36347 |
|  Temairazu, Inc. | 700 | 26411 |
|  Tenma Corp. | 5700 | 89314 |
|  TERILOGY HOLDINGS | 1600 | 3706 |
|  Tess Holdings Co., Ltd. | 1300 | 10098 |
|  Tigers Polymer Corp. | 2200 | 6738 |
|  TKC Corp. | 7400 | 201282 |
|  TKP Corp. (a) | 2100 | 45987 |
|  Toa Corp. | 14100 | 137255 |
|  TOA ROAD Corp. | 1400 | 61606 |
|  Toagosei Co., Ltd. (d) | 30800 | 258603 |
|  Tobishima Corp. | 5560 | 42445 |
|  TOC Co., Ltd. | 14300 | 73003 |
|  Tocalo Co., Ltd. | 17400 | 150902 |
|  Tochigi Bank, Ltd. (The) | 38200 | 90722 |
|  Toda Corp. | 36000 | 194665 |
|  Toda Kogyo Corp. (a) | 600 | 11469 |
|  Toei Co., Ltd. | 400 | 53779 |
|  Toell Co., Ltd. (d) | 3100 | 17589 |
|  Toenec Corp. | 2400 | 63558 |
|  Toho Bank, Ltd. (The) | 57800 | 98442 |

---

*See accompanying notes to financial statements.* 

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Toho Co., Ltd. | 2700 | $35220 |
|  Toho Gas Co., Ltd. | 1900 | 36428 |
|  Toho Holdings Co., Ltd. | 13700 | 228725 |
|  Toho Titanium Co., Ltd. | 11300 | 240113 |
|  Toho Zinc Co., Ltd. | 5000 | 77661 |
|  Tohoku Bank, Ltd. (The) | 4700 | 36435 |
|  Tohokushinsha Film Corp. | 4800 | 24443 |
|  Tokai Carbon Co., Ltd. | 56800 | 464195 |
|  Tokai Corp. | 7400 | 107753 |
|  TOKAI Holdings Corp. | 24700 | 161581 |
|  Tokai Lease Co., Ltd. | 1600 | 16885 |
|  Tokai Rika Co., Ltd. | 15500 | 164881 |
|  Tokai Tokyo Financial Holdings, Inc. | 64500 | 172454 |
|  Token Corp. | 2460 | 139037 |
|  Tokushu Tokai Paper Co., Ltd. | 3000 | 64384 |
|  Tokuyama Corp. | 19200 | 260532 |
|  Tokyo Base Co., Ltd. (a) | 4100 | 8805 |
|  Tokyo Electron Device, Ltd. | 2400 | 121908 |
|  Tokyo Energy & Systems, Inc. | 8000 | 56386 |
|  Tokyo Individualized Educational Institute, Inc. | 2500 | 10019 |
|  Tokyo Keiki, Inc. | 4200 | 42581 |
|  Tokyo Kiraboshi Financial Group, Inc. | 9724 | 192764 |
|  Tokyo Ohka Kogyo Co., Ltd. | 2100 | 94599 |
|  Tokyo Rakutenchi Co., Ltd. | 1000 | 30990 |
|  Tokyo Rope Manufacturing Co., Ltd. | 2800 | 18016 |
|  Tokyo Sangyo Co., Ltd. | 7300 | 41528 |
|  Tokyo Seimitsu Co., Ltd. | 11900 | 386626 |
|  Tokyo Steel Manufacturing Co., Ltd. | 21400 | 193265 |
|  Tokyo Tekko Co., Ltd. | 3400 | 36700 |
|  Tokyo Theatres Co., Inc. | 2900 | 24813 |
|  Tokyotokeiba Co., Ltd. (d) | 4200 | 121090 |
|  Tokyu Construction Co., Ltd. | 21400 | 103033 |
|  Tokyu Recreation Co., Ltd. | 1200 | 54872 |
|  Toli Corp. | 15600 | 27097 |
|  Tomato Bank, Ltd. (d) | 4200 | 33279 |
|  Tomen Devices Corp. | 800 | 33464 |
|  Tomoe Corp. | 9800 | 30016 |
|  Tomoe Engineering Co., Ltd. | 2100 | 37572 |
|  Tomoku Co., Ltd. | 3900 | 50182 |
|  TOMONY Holdings, Inc. | 47700 | 134306 |
|  Tomy Co., Ltd. | 25100 | 239569 |
|  Tonami Holdings Co., Ltd. | 1800 | 50039 |
|  Topcon Corp. | 28800 | 330356 |
|  Topre Corp. | 9800 | 83683 |
|  Topy Industries, Ltd. | 5700 | 69844 |
|  Torex Semiconductor, Ltd. | 500 | 9636 |
|  Toridolll Holdings Corp. | 11600 | 238687 |
|  Torigoe Co., Ltd. (The) (d) | 6000 | 27031 |
|  Torii Pharmaceutical Co., Ltd. | 4500 | 99678 |
|  Torishima Pump Manufacturing Co., Ltd. | 6500 | 70939 |
|  Tosei Corp. | 11700 | 120808 |
|  Toshiba TEC Corp. | 6000 | 163115 |
|  Totech Corp. | 700 | 17703 |
|  Totetsu Kogyo Co., Ltd. | 8000 | 159413 |
|  Tottori Bank, Ltd. (The) | 3700 | 32210 |
|  Toukei Computer Co., Ltd. | 300 | 11737 |
|  Towa Bank, Ltd. (The) | 11500 | 49207 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Towa Corp. (d) | 6300 | 81070 |
|  Towa Pharmaceutical Co., Ltd. | 8400 | 136359 |
|  Toyo Construction Co., Ltd. | 25499 | 165951 |
|  Toyo Corp. | 7900 | 82214 |
|  Toyo Denki Seizo KK | 3200 | 20501 |
|  Toyo Engineering Corp. (a) | 10800 | 45674 |
|  Toyo Gosei Co., Ltd. | 800 | 43980 |
|  Toyo Ink SC Holdings Co., Ltd. (d) | 10300 | 140413 |
|  Toyo Kanetsu KK | 2400 | 46349 |
|  Toyo Machinery & Metal Co., Ltd. | 6000 | 25088 |
|  Toyo Securities Co., Ltd. | 23000 | 51162 |
|  Toyo Tanso Co., Ltd. (d) | 3600 | 101798 |
|  Toyo Tire Corp. | 19400 | 218982 |
|  Toyo Wharf & Warehouse Co., Ltd. | 2500 | 23943 |
|  Toyobo Co., Ltd. | 23600 | 177957 |
|  Toyoda Gosei Co., Ltd. | 4100 | 63372 |
|  TPR Co., Ltd. | 7300 | 67293 |
|  Traders Holdings Co., Ltd. | 2800 | 8039 |
|  Trancom Co., Ltd. (d) | 2300 | 129347 |
|  Trans Genic, Inc. | 2700 | 6693 |
|  Transaction Co., Ltd. | 1400 | 12960 |
|  Transcosmos, Inc. | 4200 | 104127 |
|  Tri Chemical Laboratories, Inc. | 6000 | 90822 |
|  Trusco Nakayama Corp. (d) | 11300 | 173371 |
|  TS Tech Co., Ltd. | 20700 | 236716 |
|  TSI Holdings Co., Ltd. | 14405 | 48590 |
|  Tsubaki Nakashima Co., Ltd. (d) | 13000 | 99632 |
|  Tsubakimoto Chain Co. | 7900 | 177657 |
|  Tsubakimoto Kogyo Co., Ltd. | 1600 | 46934 |
|  Tsugami Corp. | 10600 | 92509 |
|  Tsukishima Kikai Co., Ltd. | 9000 | 65236 |
|  Tsukuba Bank, Ltd. | 34500 | 62292 |
|  Tsumura & Co. | 16200 | 357626 |
|  Tsurumi Manufacturing Co., Ltd. | 6100 | 92227 |
|  Tsutsumi Jewelry Co., Ltd. | 2100 | 30268 |
|  TV Asahi Holdings Corp. | 6300 | 63842 |
|  TV Tokyo Holdings Corp. | 1800 | 25177 |
|  TYK Corp. | 6000 | 12001 |
|  UACJ Corp. | 9185 | 153032 |
|  UBE Corp. | 24700 | 362274 |
|  Ubicom Holdings, Inc. | 500 | 8421 |
|  Uchida Yoko Co., Ltd. | 2600 | 91978 |
|  Ueki Corp. | 2200 | 21757 |
|  ULS Group, Inc. | 600 | 15639 |
|  Ulvac, Inc. | 8000 | 333006 |
|  Union Tool Co. | 3400 | 82879 |
|  Unipres Corp. | 10600 | 60592 |
|  United Arrows, Ltd. | 3100 | 43731 |
|  United Super Markets Holdings, Inc. | 18100 | 154915 |
|  UNITED, Inc. (d) | 3000 | 27825 |
|  Unitika, Ltd. (a) | 15600 | 29235 |
|  Universal Entertainment Corp. (a) | 7300 | 131283 |
|  Urbanet Corp. Co., Ltd. | 4500 | 10441 |
|  Usen-Next Holdings Co., Ltd. | 2700 | 43778 |
|  Ushio, Inc. | 30500 | 373651 |
|  UT Group Co., Ltd. | 6600 | 113577 |
|  UUUM Co., Ltd. (a) | 1800 | 11238 |

---

*See accompanying notes to financial statements.* 

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  V Technology Co., Ltd. | 2700 | $| 51401 |
|  V-Cube, Inc. (d) | 2100 |  | 11435 |
|  Valor Holdings Co., Ltd. | 11800 |  | 162748 |
|  Valqua, Ltd. | 6000 |  | 119437 |
|  Value HR Co., Ltd. (d) | 2000 |  | 23775 |
|  ValueCommerce Co., Ltd. | 4300 |  | 59408 |
|  Vector, Inc. | 8200 |  | 83560 |
|  Vertex Corp. | 3000 |  | 29915 |
|  Village Vanguard Co., Ltd. (a) (d) | 2300 |  | 18177 |
|  VINX Corp. | 1000 |  | 11287 |
|  Vital KSK Holdings, Inc. | 14200 |  | 91938 |
|  VT Holdings Co., Ltd. (d) | 24300 |  | 86823 |
|  Wacoal Holdings Corp. | 12400 |  | 222403 |
|  Wacom Co., Ltd. | 39500 |  | 175668 |
|  Wakachiku Construction Co., Ltd. | 4600 |  | 99410 |
|  Wakamoto Pharmaceutical Co., Ltd. (a) | 9000 |  | 15130 |
|  Wakita & Co., Ltd. | 11200 |  | 101048 |
|  Warabeya Nichiyo Holdings Co., Ltd. | 4200 |  | 58545 |
|  Waseda Academy Co., Ltd. | 1400 |  | 11894 |
|  Watahan & Co., Ltd. | 3200 |  | 32508 |
|  Watts Co., Ltd. | 1900 |  | 10392 |
|  WDB Holdings Co., Ltd. | 2700 |  | 45287 |
|  Weathernews, Inc. | 1500 |  | 80964 |
|  Welbe, Inc. (a) | 2300 |  | 12750 |
|  Wellnet Corp. | 4400 |  | 20211 |
|  West Holdings Corp. | 5629 |  | 186388 |
|  Will Group, Inc. | 4200 |  | 37898 |
|  WIN-Partners Co., Ltd. | 5000 |  | 40473 |
|  WingArc1st, Inc. | 1800 |  | 27787 |
|  Wood One Co., Ltd. | 2600 |  | 17984 |
|  World Co., Ltd. | 5000 |  | 49736 |
|  World Holdings Co., Ltd. | 2500 |  | 47470 |
|  Wowow, Inc. | 2200 |  | 21200 |
|  Xebio Holdings Co., Ltd. | 8700 |  | 60707 |
|  Y.A.C. Holdings Co., Ltd. | 1800 |  | 21639 |
|  YA-MAN, Ltd. (d) | 8800 |  | 96442 |
|  Yachiyo Industry Co., Ltd. | 3900 |  | 41591 |
|  Yahagi Construction Co., Ltd. | 9500 |  | 54291 |
|  Yaizu Suisankagaku Industry Co., Ltd. | 4400 |  | 28408 |
|  YAKUODO Holdings Co., Ltd. | 2900 |  | 62953 |
|  YAMABIKO Corp. (d) | 11500 |  | 95505 |
|  YAMADA Consulting Group Co., Ltd. | 3100 |  | 27544 |
|  Yamagata Bank, Ltd. (The) (d) | 9300 |  | 87514 |
|  Yamaguchi Financial Group, Inc. | 57500 |  | 376963 |
|  Yamaichi Electronics Co., Ltd. | 7500 |  | 96856 |
|  Yamanashi Chuo Bank, Ltd. (The) | 10400 |  | 87938 |
|  Yamatane Corp. | 3400 |  | 42780 |
|  Yamato Corp. | 6600 |  | 35060 |
|  Yamato Kogyo Co., Ltd. | 3400 |  | 115639 |
|  Yamaura Corp. | 2800 |  | 21355 |
|  Yamaya Corp. | 1150 |  | 21896 |
|  Yamazawa Co., Ltd. | 1000 |  | 9779 |
|  Yamazen Corp. | 19500 |  | 147784 |
|  Yaoko Co., Ltd. | 3600 |  | 185216 |
|  Yashima Denki Co., Ltd. (d) | 7500 |  | 62008 |
|  Yasuda Logistics Corp. | 4900 |  | 34424 |
|  Yasunaga Corp. | 1700 |  | 8562 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Yellow Hat, Ltd. | 10300 |  | 140763 |
|  Yodogawa Steel Works, Ltd. | 6800 |  | 130216 |
|  Yokogawa Bridge Holdings Corp. | 10500 |  | 149074 |
|  Yokorei Co., Ltd. | 15500 |  | 125784 |
|  Yokowo Co., Ltd. | 4300 |  | 70029 |
|  Yomeishu Seizo Co., Ltd. | 2400 |  | 33025 |
|  Yondenko Corp. | 3200 |  | 42039 |
|  Yondoshi Holdings, Inc. | 4600 |  | 60876 |
|  Yonex Co., Ltd. | 9500 |  | 86099 |
|  Yorozu Corp. | 6500 |  | 34361 |
|  Yoshinoya Holdings Co., Ltd. | 17200 |  | 300078 |
|  Yotai Refractories Co., Ltd. | 4100 |  | 41769 |
|  Yuasa Funashoku Co., Ltd. | 1300 |  | 25418 |
|  Yuasa Trading Co., Ltd. | 5800 |  | 158584 |
|  Yuken Kogyo Co., Ltd. | 1700 |  | 23288 |
|  Yukiguni Maitake Co., Ltd. | 2100 |  | 16084 |
|  Yurtec Corp. | 12000 |  | 66631 |
|  Yushin Precision Equipment Co., Ltd. | 2900 |  | 14697 |
|  Yushiro Chemical Industry Co., Ltd. | 3700 |  | 22010 |
|  Yutaka Giken Co., Ltd. | 600 |  | 7661 |
|  Zaoh Co., Ltd. | 800 |  | 10545 |
|  Zenrin Co., Ltd. | 9750 |  | 61034 |
|  ZERIA Pharmaceutical Co., Ltd. | 2800 |  | 47895 |
|  ZIGExN Co., Ltd. | 8400 |  | 23721 |
|  Zojirushi Corp. | 800 |  | 9999 |
|  Zuiko Corp. | 4000 |  | 22736 |
|  |  |  | 132423376 |
| **Jersey, Channel Islands—0.1%** | **Jersey, Channel Islands—0.1%** | **Jersey, Channel Islands—0.1%** | **Jersey, Channel Islands—0.1%** |
|  Centamin plc | 366127 |  | 500090 |
|  JTC plc (144A) | 1192 |  | 10779 |
|  |  |  | 510869 |
| **Liechtenstein—0.1%** | **Liechtenstein—0.1%** | **Liechtenstein—0.1%** | **Liechtenstein—0.1%** |
|  Liechtensteinische Landesbank AG | 3540 |  | 213370 |
|  VP Bank AG - Class A | 1049 |  | 99561 |
|  |  |  | 312931 |
| **Luxembourg—0.3%** | **Luxembourg—0.3%** | **Luxembourg—0.3%** | **Luxembourg—0.3%** |
|  ADLER Group S.A. (144A) (a) (d) | 1495 |  | 2153 |
|  APERAM S.A. | 13472 |  | 426357 |
|  Befesa S.A. (144A) | 8330 |  | 402077 |
|  L'Occitane International S.A. | 51500 |  | 160400 |
|  SES S.A. | 79768 |  | 520721 |
|  |  |  | 1511708 |
| **Macau—0.1%** | **Macau—0.1%** | **Macau—0.1%** | **Macau—0.1%** |
|  MECOM Power and Construction, Ltd. (d) | 141000 |  | 35395 |
|  SJM Holdings, Ltd. (a) (d) | 486249 |  | 282080 |
|  |  |  | 317475 |
| **Malaysia—0.0%** | **Malaysia—0.0%** | **Malaysia—0.0%** | **Malaysia—0.0%** |
|  Aspen Group Holdings, Ltd. (a) | 6180 |  | 199 |

---

*See accompanying notes to financial statements.* 

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Malta—0.0%** | **Malta—0.0%** | **Malta—0.0%** |
|  Gaming Innovation Group, Inc. (a) (d) | 5882 | $15728 |
| **Mongolia—0.0%** | **Mongolia—0.0%** | **Mongolia—0.0%** |
|  Mongolian Mining Corp. (a) (d) | 33000 | 8657 |
| **Netherlands—2.1%** | **Netherlands—2.1%** | **Netherlands—2.1%** |
|  Aalberts NV | 29622 | 1151593 |
|  Acomo NV | 2850 | 58030 |
|  Alfen Beheer B.V. (144A) (a) | 4827 | 435896 |
|  AMG Advanced Metallurgical Group NV | 10120 | 370373 |
|  Arcadis NV | 23043 | 906898 |
|  ASR Nederland NV | 18259 | 865726 |
|  Basic-Fit NV (144A) (a) (d) | 8733 | 227401 |
|  BE Semiconductor Industries NV | 15684 | 952763 |
|  Beter Bed Holding NV (d) | 5373 | 16291 |
|  Brack Capital Properties NV (a) | 856 | 88882 |
|  Brunel International NV | 8065 | 82541 |
|  Corbion NV | 16447 | 561389 |
|  CTP NV (144A) | 3536 | 41637 |
|  Flow Traders (144A) | 10451 | 242138 |
|  ForFarmers NV | 10101 | 31664 |
|  Fugro NV (a) | 23967 | 287539 |
|  Heijmans NV | 6019 | 65275 |
|  Kendrion NV | 4279 | 70882 |
|  Koninklijke BAM Groep NV (a) | 79253 | 184401 |
|  Koninklijke Vopak NV | 11807 | 351295 |
|  Lucas Bols B.V. (144A) (a) | 1325 | 14590 |
|  MFE-MediaForEurope NV - Class A | 267783 | 103752 |
|  MFE-MediaForEurope NV - Class B | 95311 | 57174 |
|  Nedap NV | 1849 | 108775 |
|  New World Resources plc (a) (b) (c) | 11898 | 0 |
|  OCI NV | 14806 | 528345 |
|  Ordina NV | 33735 | 139506 |
|  Pharming Group NV (a) | 76183 | 88254 |
|  PostNL NV (d) | 119358 | 217742 |
|  Rhi Magnesita NV (d) | 4696 | 129304 |
|  SBM Offshore NV | 37891 | 595393 |
|  Shop Apotheke Europe NV (144A) (a) | 680 | 32108 |
|  SIF Holding NV (d) | 1259 | 15595 |
|  Signify NV (144A) | 31954 | 1075804 |
|  Sligro Food Group NV | 7470 | 129624 |
|  SNS REAAL NV (a) (b) (c) | 105329 | 0 |
|  TKH Group NV (d) | 11770 | 468913 |
|  TomTom NV (a) (d) | 22362 | 155528 |
|  Van Lanschot Kempen NV | 6057 | 142160 |
|  |  | 10995181 |
| **New Zealand—0.5%** | **New Zealand—0.5%** | **New Zealand—0.5%** |
|  Air New Zealand, Ltd. (a) | 216039 | 101499 |
|  Arvida Group, Ltd. (d) | 93358 | 67461 |
|  Briscoe Group, Ltd. | 13123 | 38329 |
|  Channel Infrastructure NZ, Ltd. (a) (d) | 39302 | 35629 |
|  Chorus, Ltd. | 70298 | 364001 |
|  Delegat Group, Ltd. | 6671 | 43195 |
|  Eroad, Ltd. (a) (d) | 4808 | 2866 |
|  Freightways, Ltd. | 28712 | 176067 |
| **New Zealand—(Continued)** | **New Zealand—(Continued)** | **New Zealand—(Continued)** |
|  Gentrack Group, Ltd. (a) | 7810 | 12522 |
|  Hallenstein Glasson Holdings, Ltd. | 13182 | 45526 |
|  Heartland Group Holdings, Ltd. | 117647 | 133800 |
|  Investore Property, Ltd. (REIT) | 46089 | 43847 |
|  KMD Brands Ltd. | 106864 | 69706 |
|  Manawa Energy, Ltd. | 13980 | 44161 |
|  Michael Hill International, Ltd. | 82929 | 60554 |
|  NZME, Ltd. | 71247 | 52843 |
|  NZX, Ltd. | 77106 | 59228 |
|  Oceania Healthcare, Ltd. | 111548 | 53938 |
|  Pacific Edge, Ltd. (a) (d) | 89677 | 28371 |
|  PGG Wrightson, Ltd. | 5854 | 16232 |
|  Pushpay Holdings, Ltd. (a) | 129936 | 105025 |
|  Restaurant Brands New Zealand, Ltd. | 7507 | 27403 |
|  Sanford, Ltd. (d) | 17782 | 46177 |
|  Scales Corp., Ltd. (d) | 25709 | 66912 |
|  Serko, Ltd. (a) | 5880 | 8396 |
|  Skellerup Holdings, Ltd. (d) | 44588 | 151389 |
|  SKY Network Television, Ltd. | 38232 | 55828 |
|  SKYCITY Entertainment Group, Ltd. (a) | 174650 | 262724 |
|  Steel & Tube Holdings, Ltd. | 51732 | 41745 |
|  Summerset Group Holdings, Ltd. | 22213 | 124790 |
|  Synlait Milk, Ltd. (a) | 17226 | 38635 |
|  Tourism Holdings, Ltd. (a) | 26255 | 57499 |
|  TOWER, Ltd. | 53852 | 24740 |
|  Turners Automotive Group, Ltd. | 8394 | 17531 |
|  Warehouse Group, Ltd. (The) | 26369 | 43517 |
|  |  | 2522086 |
| **Norway—0.8%** | **Norway—0.8%** | **Norway—0.8%** |
|  2020 Bulkers, Ltd. (a) (d) | 3023 | 28585 |
|  ABG Sundal Collier Holding ASA | 134443 | 77271 |
|  Akastor ASA (a) (d) | 47184 | 44094 |
|  Aker Carbon Capture ASA (a) | 38063 | 44958 |
|  Aker Solutions ASA | 12676 | 48427 |
|  AMSC ASA (a) | 16816 | 74919 |
|  Arcticzymes Technologies ASA (a) (d) | 4578 | 33493 |
|  Atea ASA (a) | 18057 | 210106 |
|  Axactor ASA (a) (d) | 50628 | 30389 |
|  B2Holding ASA | 54575 | 43487 |
|  Belships ASA (d) | 6016 | 8752 |
|  Bonheur ASA | 8017 | 234872 |
|  Borregaard ASA | 9707 | 150642 |
|  Bouvet ASA | 9623 | 58531 |
|  BW Energy, Ltd. (a) | 25785 | 66207 |
|  BW Offshore, Ltd. | 24958 | 63672 |
|  Cloudberry Clean Energy ASA (a) | 5774 | 7298 |
|  Crayon Group Holding ASA (144A) (a) (d) | 9599 | 98155 |
|  DNO ASA | 137884 | 166979 |
|  Europris ASA (144A) | 48402 | 339715 |
|  Grieg Seafood ASA | 13378 | 107087 |
|  Hexagon Composites ASA (a) | 36341 | 101198 |
|  Hunter Group ASA (a) (d) | 44041 | 10700 |
|  IDEX Biometrics ASA (a) | 200592 | 20481 |
|  Itera ASA | 17553 | 23706 |
|  Kahoot ASA (a) | 28011 | 55633 |

---

*See accompanying notes to financial statements.* 

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Norway—(Continued)** | **Norway—(Continued)** | **Norway—(Continued)** | **Norway—(Continued)** |
|  Kid ASA (144A) | 4010 | $| 29612 |
|  Kitron ASA | 28832 |  | 82583 |
|  Kongsberg Automotive ASA (a) (d) | 222670 |  | 57482 |
|  Medistim ASA | 1762 |  | 41507 |
|  MPC Container Ships ASA | 39419 |  | 65135 |
|  Multiconsult ASA (144A) | 1528 |  | 21587 |
|  Nekkar ASA (a) (d) | 8927 |  | 5550 |
|  Norske Skog ASA (144A) (a) | 5807 |  | 39889 |
|  Norwegian Air Shuttle ASA (a) | 68212 |  | 51162 |
|  Norwegian Energy Co. ASA (a) | 3930 |  | 157953 |
|  Odfjell Drilling, Ltd. (a) | 25648 |  | 68479 |
|  Odfjell SE - A Shares | 1949 |  | 17597 |
|  OKEA ASA | 884 |  | 3096 |
|  Otello Corp. ASA | 150 |  | 122 |
|  Pareto Bank ASA | 2287 |  | 11171 |
|  PGS ASA (a) | 142218 |  | 102597 |
|  Protector Forsikring ASA | 23458 |  | 301172 |
|  REC Silicon ASA (a) (d) | 64361 |  | 91923 |
|  Scatec ASA (144A) | 7609 |  | 60869 |
|  Selvaag Bolig ASA | 14928 |  | 48865 |
|  Sparebank 1 Oestlandet | 1802 |  | 22296 |
|  SpareBank 1 Sorost-Norge | 3854 |  | 21575 |
|  Sparebanken More | 2450 |  | 21057 |
|  Stolt-Nielsen, Ltd. | 6538 |  | 179882 |
|  Treasure ASA | 21003 |  | 37623 |
|  Ultimovacs ASA (a) | 1682 |  | 18775 |
|  Veidekke ASA | 28524 |  | 281741 |
|  Wilh Wilhelmsen Holding ASA - Class A | 3078 |  | 86172 |
|  XXL ASA (144A) | 45078 |  | 17599 |
|  |  |  | 4094428 |
| **Peru—0.0%** | **Peru—0.0%** | **Peru—0.0%** | **Peru—0.0%** |
|  Hochschild Mining plc | 95965 |  | 81311 |
| **Philippines—0.0%** | **Philippines—0.0%** | **Philippines—0.0%** | **Philippines—0.0%** |
|  Del Monte Pacific, Ltd. | 77636 |  | 19433 |
| **Portugal—0.4%** | **Portugal—0.4%** | **Portugal—0.4%** | **Portugal—0.4%** |
|  Altri SGPS S.A. (d) | 27747 |  | 148535 |
|  Banco Comercial Portugues S.A. - Class R (d) | 2143248 |  | 337244 |
|  Corticeira Amorim SGPS S.A. | 2047 |  | 19124 |
|  CTT-Correios de Portugal S.A. | 39990 |  | 132109 |
|  Greenvolt-Energias Renovaveis S.A. (a) | 7502 |  | 62813 |
|  Mota-Engil SGPS S.A. (d) | 25385 |  | 31784 |
|  Navigator Co. S.A. (The) | 71289 |  | 263442 |
|  NOS SGPS S.A. (d) | 74998 |  | 303555 |
|  Novabase SGPS S.A. (a) | 7827 |  | 33813 |
|  REN - Redes Energeticas Nacionais SGPS S.A. | 122322 |  | 330447 |
|  Sonae SGPS S.A. | 309228 |  | 309218 |
|  |  |  | 1972084 |
| **Singapore—1.2%** | **Singapore—1.2%** | **Singapore—1.2%** | **Singapore—1.2%** |
|  Abterra, Ltd. (a) (b) (c) | 51720 |  | 0 |
|  AEM Holdings, Ltd. | 46700 |  | 119423 |
|  Avarga, Ltd. (a) | 46000 |  | 7560 |
|  Banyan Tree Holdings, Ltd. (a) | 97700 |  | 23318 |
| **Singapore—(Continued)** | **Singapore—(Continued)** | **Singapore—(Continued)** | **Singapore—(Continued)** |
|  Best World International, Ltd. (a) | 17862 |  | 23738 |
|  BOC Aviation, Ltd. (144A) | 12000 |  | 99749 |
|  Bonvests Holdings, Ltd. | 18000 |  | 12162 |
|  Boustead Projects, Ltd. | 24607 |  | 15149 |
|  Boustead Singapore, Ltd. | 82025 |  | 49262 |
|  Bukit Sembawang Estates, Ltd. | 56100 |  | 191967 |
|  BW LPG, Ltd. (144A) | 21752 |  | 168749 |
|  Capitaland India Trust | 242700 |  | 204899 |
|  Centurion Corp., Ltd. | 98400 |  | 24583 |
|  China Aviation Oil Singapore Corp., Ltd. | 83000 |  | 55180 |
|  Chip Eng Seng Corp., Ltd. | 136300 |  | 76236 |
|  Chuan Hup Holdings, Ltd. | 125000 |  | 20598 |
|  ComfortDelGro Corp., Ltd. | 427500 |  | 391827 |
|  COSCO Shipping International Singapore Co., Ltd. (a) | 332100 |  | 44401 |
|  Creative Technology, Ltd. (a) | 16300 |  | 17188 |
|  CSE Global, Ltd. | 114300 |  | 29027 |
|  CW Group Holdings, Ltd. (a) (b) (c) | 106000 |  | 0 |
|  Delfi, Ltd. | 80600 |  | 46514 |
|  Ezion Holdings, Ltd. (a) (b) (c) | 753729 |  | 0 |
|  Ezra Holdings, Ltd. (a) (b) (c) | 1000703 |  | 0 |
|  Far East Orchard, Ltd. | 76120 |  | 59745 |
|  First Resources, Ltd. | 141400 |  | 156400 |
|  Food Empire Holdings, Ltd. | 54000 |  | 25567 |
|  Fraser and Neave, Ltd. | 36400 |  | 34483 |
|  Frencken Group, Ltd. | 57600 |  | 40710 |
|  Fu Yu Corp., Ltd. | 98800 |  | 16215 |
|  Gallant Venture, Ltd. (a) | 257900 |  | 24852 |
|  Geo Energy Resources, Ltd. | 155000 |  | 37669 |
|  GK Goh Holdings, Ltd. | 12000 |  | 8153 |
|  Golden Agri-Resources, Ltd. | 1411300 |  | 263145 |
|  Golden Energy & Resources, Ltd. (a) | 69000 |  | 40322 |
|  GuocoLand, Ltd. | 68800 |  | 83244 |
|  Hafnia, Ltd. | 14810 |  | 76435 |
|  Halcyon Agri Corp., Ltd. (a) | 155813 |  | 45907 |
|  Haw Par Corp., Ltd. | 29700 |  | 212391 |
|  Hiap Hoe, Ltd. | 58000 |  | 32477 |
|  Ho Bee Land, Ltd. | 49800 |  | 90112 |
|  Hong Fok Corp., Ltd. | 107140 |  | 76048 |
|  Hong Leong Asia, Ltd. | 52600 |  | 25608 |
|  Hong Leong Finance, Ltd. | 43900 |  | 78341 |
|  Hotel Grand Central, Ltd. | 26435 |  | 17467 |
|  Hour Glass, Ltd. (The) | 75300 |  | 114520 |
|  Hrnet Group, Ltd. | 67700 |  | 39666 |
|  Hyflux, Ltd. (a) (b) (c) | 179500 |  | 0 |
|  iFAST Corp., Ltd. (a) | 25500 |  | 111145 |
|  IGG, Inc. (a) | 227000 |  | 83516 |
|  Indofood Agri Resources, Ltd. | 152000 |  | 34577 |
|  InnoTek, Ltd. | 17400 |  | 6308 |
|  Japfa, Ltd. | 98670 |  | 25367 |
|  Keppel Infrastructure Trust | 849718 |  | 342089 |
|  KSH Holdings, Ltd. | 25700 |  | 6522 |
|  Low Keng Huat Singapore, Ltd. | 122600 |  | 34782 |
|  Metro Holdings, Ltd. | 141600 |  | 67082 |
|  Mewah International, Inc. | 110000 |  | 24638 |
|  Midas Holdings, Ltd. (a) (b) (c) | 452000 |  | 0 |
|  mm2 Asia, Ltd. (a) | 299600 |  | 10041 |
|  Nanofilm Technologies International, Ltd. | 29200 |  | 30353 |

---

*See accompanying notes to financial statements.* 

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Singapore—(Continued)** | **Singapore—(Continued)** | **Singapore—(Continued)** | **Singapore—(Continued)** |
|  NetLink NBN Trust | 345500 | $| 213741 |
|  NSL, Ltd. | 15000 |  | 9295 |
|  Overseas Union Enterprise, Ltd. | 70300 |  | 65612 |
|  Oxley Holdings, Ltd. | 268718 |  | 29096 |
|  Pan-United Corp., Ltd. | 53750 |  | 15806 |
|  Propnex, Ltd. | 7700 |  | 8791 |
|  PSC Corp, Ltd. | 19000 |  | 4467 |
|  Q&M Dental Group Singapore, Ltd. (a) | 50160 |  | 11778 |
|  QAF, Ltd. | 74167 |  | 45940 |
|  Raffles Education, Ltd. (a) | 335506 |  | 13010 |
|  Raffles Medical Group, Ltd. | 229411 |  | 239904 |
|  Rickmers Maritime (a) (b) (c) | 110000 |  | 0 |
|  SATS, Ltd. (a) | 93000 |  | 197340 |
|  SBS Transit, Ltd. | 25600 |  | 49210 |
|  Sembcorp Marine, Ltd. (a) | 2781900 |  | 286861 |
|  Sheng Siong Group, Ltd. | 146100 |  | 179876 |
|  SHS Holdings, Ltd. (a) | 47000 |  | 4983 |
|  SIA Engineering Co., Ltd. (a) | 55200 |  | 96510 |
|  SIIC Environment Holdings, Ltd. | 220300 |  | 30359 |
|  Sinarmas Land, Ltd. | 618500 |  | 83118 |
|  Sing Holdings, Ltd. | 82000 |  | 21734 |
|  Singapore Land Group, Ltd. | 20800 |  | 34868 |
|  Singapore Post, Ltd. | 414200 |  | 160879 |
|  Stamford Land Corp., Ltd. | 304601 |  | 78422 |
|  StarHub, Ltd. | 117100 |  | 90968 |
|  Straits Trading Co., Ltd. | 8024 |  | 13918 |
|  Swiber Holdings, Ltd. (a) (b) (c) | 117749 |  | 0 |
|  Thomson Medical Group, Ltd. | 328600 |  | 19126 |
|  Tuan Sing Holdings, Ltd. | 184839 |  | 41895 |
|  UMS Holdings, Ltd. | 145312 |  | 128499 |
|  United Overseas Insurance, Ltd. | 4000 |  | 19233 |
|  UOB-Kay Hian Holdings, Ltd. | 128856 |  | 132501 |
|  Vicom, Ltd. | 26000 |  | 37220 |
|  Wee Hur Holdings, Ltd. | 85000 |  | 12311 |
|  Wing Tai Holdings, Ltd. | 119321 |  | 133571 |
|  XP Power, Ltd. (d) | 2918 |  | 71734 |
|  Yeo Hiap Seng, Ltd. | 20155 |  | 9856 |
|  |  |  | 6589859 |
| **South Africa—0.1%** | **South Africa—0.1%** | **South Africa—0.1%** | **South Africa—0.1%** |
|  Mediclinic International plc | 122923 |  | 740151 |
| **Spain—2.4%** | **Spain—2.4%** | **Spain—2.4%** | **Spain—2.4%** |
|  Acerinox S.A. | 63187 |  | 624342 |
|  Alantra Partners S.A. | 6139 |  | 79129 |
|  Almirall S.A. | 22083 |  | 213680 |
|  Amper S.A. (a) (d) | 224339 |  | 35795 |
|  Applus Services S.A. | 33014 |  | 227517 |
|  Atresmedia Corp. de Medios de Comunicacion S.A. (d) | 31355 |  | 107495 |
|  Azkoyen S.A. | 3142 |  | 19949 |
|  Banco de Sabadell S.A. | 1485718 |  | 1398737 |
|  Bankinter S.A. | 180931 |  | 1212571 |
|  Caja de Ahorros del Mediterraneo (a) (b) (c) (d) | 14621 |  | 0 |
|  Cia de Distribucion Integral Logista Holdings S.A. (a) | 12772 |  | 322497 |
|  Cie Automotive S.A. | 13586 |  | 350548 |
|  Construcciones y Auxiliar de Ferrocarriles S.A. | 5880 |  | 167328 |
| **Spain—(Continued)** | **Spain—(Continued)** | **Spain—(Continued)** | **Spain—(Continued)** |
|  Distribuidora Internacional de Alimentacion S.A. (a) | 2455491 |  | 33374 |
|  Ebro Foods S.A. | 20251 |  | 317724 |
|  eDreams ODIGEO S.A. (a) | 17603 |  | 74644 |
|  Elecnor S.A. | 11262 |  | 127813 |
|  Enagas S.A. (d) | 60475 |  | 1005466 |
|  Ence Energia y Celulosa S.A | 52675 |  | 158183 |
|  Ercros S.A. | 30406 |  | 105310 |
|  Faes Farma S.A. | 100057 |  | 375705 |
|  Fluidra S.A. | 14698 |  | 227951 |
|  Fomento de Construcciones y Contratas S.A. | 10961 |  | 103742 |
|  Gestamp Automocion S.A. (144A) | 18173 |  | 70441 |
|  Global Dominion Access S.A. (144A) | 25444 |  | 97760 |
|  Grenergy Renovables S.A. (a) (d) | 1152 |  | 34153 |
|  Grupo Catalana Occidente S.A. | 14264 |  | 450696 |
|  Grupo Empresarial San Jose S.A. (d) | 8320 |  | 35353 |
|  Iberpapel Gestion S.A. | 1128 |  | 16175 |
|  Indra Sistemas S.A. | 42149 |  | 479808 |
|  Laboratorios Farmaceuticos Rovi S.A. | 4330 |  | 166968 |
|  Linea Directa Aseguradora S.A. Cia de Seguros y Reaseguros | 186237 |  | 205513 |
|  Mapfre S.A. | 177590 |  | 344317 |
|  Melia Hotels International S.A. (a) (d) | 31617 |  | 154701 |
|  Miquel y Costas & Miquel S.A. | 8745 |  | 109574 |
|  Neinor Homes S.A. (144A) | 4237 |  | 37065 |
|  Obrascon Huarte Lain S.A. (a) | 47913 |  | 22969 |
|  Pharma Mar S.A. | 2214 |  | 152163 |
|  Prim S.A. (d) | 3013 |  | 34832 |
|  Promotora de Informaciones S.A. - Class A (a) (d) | 83921 |  | 25222 |
|  Prosegur Cash S.A. (144A) (d) | 28432 |  | 18258 |
|  Prosegur Cia de Seguridad S.A. | 54905 |  | 104391 |
|  Realia Business S.A. (a) | 143011 |  | 163716 |
|  Sacyr S.A. | 131288 |  | 366486 |
|  Solaria Energia y Medio Ambiente S.A. (a) | 19439 |  | 357976 |
|  Talgo S.A. (144A) (d) | 22594 |  | 79736 |
|  Tecnicas Reunidas S.A. (a) (d) | 11115 |  | 108758 |
|  Tubacex S.A. (a) | 32455 |  | 69346 |
|  Unicaja Banco S.A. (144A) | 267421 |  | 295431 |
|  Vidrala S.A. (d) | 5686 |  | 488834 |
|  Viscofan S.A. | 10515 |  | 678851 |
|  Vocento S.A. | 18128 |  | 12251 |
|  |  |  | 12471244 |
| **Sweden—2.5%** | **Sweden—2.5%** | **Sweden—2.5%** | **Sweden—2.5%** |
|  AcadeMedia AB (144A) | 21250 |  | 90784 |
|  AddLife AB - Class B | 571 |  | 5968 |
|  AddNode Group AB | 29228 |  | 276292 |
|  AFRY AB | 11051 |  | 181578 |
|  Alimak Group AB (144A) | 10425 |  | 74531 |
|  Alligo AB - Class B | 8890 |  | 67617 |
|  Ambea AB (144A) | 4741 |  | 20006 |
|  Annehem Fastigheter AB - Class B (a) | 7859 |  | 14903 |
|  AQ Group AB | 654 |  | 19404 |
|  Arise AB (a) | 4852 |  | 23378 |
|  Arjo AB - B Shares | 55404 |  | 206298 |
|  Atrium Ljungberg AB - B Shares | 6493 |  | 106600 |
|  Attendo AB (144A) (a) | 28610 |  | 66593 |
|  Beijer Alma AB | 13962 |  | 219208 |

---

*See accompanying notes to financial statements.* 

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Sweden—(Continued)** | **Sweden—(Continued)** | **Sweden—(Continued)** | **Sweden—(Continued)** |
|  Beijer Electronics Group AB | 7843 | $| 82989 |
|  Bergman & Beving AB | 10176 |  | 108445 |
|  Besqab AB | 1061 |  | 8049 |
|  Betsson AB - Class B (a) | 39536 |  | 321566 |
|  BHG Group AB (a) | 13680 |  | 24455 |
|  Bilia AB - A Shares | 27610 |  | 303320 |
|  Biogaia AB - B Shares | 6111 |  | 48987 |
|  BioInvent International AB (a) | 2421 |  | 7456 |
|  Biotage AB | 16595 |  | 294225 |
|  Bonava AB - B Shares | 18068 |  | 51182 |
|  Boozt AB (144A) (a) | 5455 |  | 62832 |
|  Bravida Holding AB (144A) | 21254 |  | 227691 |
|  Bufab AB | 11463 |  | 257869 |
|  Bulten AB | 4294 |  | 24516 |
|  Bure Equity AB | 9390 |  | 222810 |
|  Byggmax Group AB | 18326 |  | 87460 |
|  Catella AB | 2281 |  | 7961 |
|  Catena AB | 7656 |  | 285256 |
|  Cellavision AB | 2146 |  | 47079 |
|  Cibus Nordic Real Estate AB | 2907 |  | 40041 |
|  Clas Ohlson AB - B Shares (d) | 15608 |  | 107583 |
|  Cloetta AB - B Shares | 79517 |  | 159052 |
|  Collector Bank AB (a) | 5059 |  | 18612 |
|  Coor Service Management Holding AB (144A) | 24209 |  | 149023 |
|  Corem Property Group AB - Class B | 33644 |  | 27187 |
|  Corem Property Group AB - Class D | 1405 |  | 22966 |
|  Dios Fastigheter AB | 26164 |  | 189824 |
|  Doro AB (a) | 3391 |  | 4828 |
|  Duni AB (a) | 13288 |  | 109832 |
|  Dustin Group AB (144A) (a) | 18802 |  | 74458 |
|  Eastnine AB | 7088 |  | 82052 |
|  Elanders AB - B Shares | 1453 |  | 20919 |
|  Electrolux Professional AB - Class B | 46563 |  | 195147 |
|  Eltel AB (144A) (a) | 18428 |  | 14684 |
|  Enea AB (a) (d) | 4082 |  | 33742 |
|  Eolus Vind AB - B Shares | 935 |  | 9479 |
|  eWork Group AB | 2864 |  | 33512 |
|  Fagerhult AB | 19392 |  | 75393 |
|  Fastighets AB Trianon | 3988 |  | 7968 |
|  FastPartner AB - Class A | 10644 |  | 72738 |
|  Ferronordic AB (a) | 275 |  | 2018 |
|  Fingerprint Cards AB - Class B (a) (d) | 37915 |  | 10693 |
|  FormPipe Software AB | 2450 |  | 5173 |
|  G5 Entertainment AB | 208 |  | 4200 |
|  GARO AB | 4784 |  | 49906 |
|  Granges AB | 31689 |  | 258621 |
|  Heba Fastighets AB - Class B | 19054 |  | 66287 |
|  Hexatronic Group AB | 21735 |  | 296173 |
|  HMS Networks AB | 2830 |  | 92414 |
|  Hoist Finance AB (144A) (a) | 12983 |  | 36714 |
|  Humana AB (a) | 6890 |  | 25427 |
|  Instalco AB | 38975 |  | 148579 |
|  Inwido AB | 16291 |  | 173248 |
|  ITAB Shop Concept AB (a) | 1944 |  | 2050 |
|  JM AB (d) | 17370 |  | 287733 |
|  Karnov Group AB (a) | 14120 |  | 79318 |
|  Know It AB | 6672 |  | 130147 |
| **Sweden—(Continued)** | **Sweden—(Continued)** | **Sweden—(Continued)** | **Sweden—(Continued)** |
|  Lagercrantz Group AB - B Shares | 34005 |  | 337726 |
|  Lime Technologies AB | 1294 |  | 28503 |
|  Lindab International AB | 25702 |  | 315014 |
|  Loomis AB | 14627 |  | 400674 |
|  MEKO AB | 11543 |  | 124468 |
|  MIPS AB (d) | 5892 |  | 243971 |
|  Modern Times Group MTG AB - Class B (a) | 23462 |  | 200880 |
|  Momentum Group AB (a) | 8890 |  | 49805 |
|  Munters Group AB (144A) | 20599 |  | 203742 |
|  Mycronic AB | 17551 |  | 329950 |
|  NCAB Group AB | 20370 |  | 127303 |
|  NCC AB - B Shares | 17089 |  | 159782 |
|  Nederman Holding AB | 7692 |  | 127037 |
|  Net Insight AB - Class B (a) | 74697 |  | 43446 |
|  New Wave Group AB - B Shares | 19643 |  | 390138 |
|  Nilorngruppen AB - B Shares | 1106 |  | 8894 |
|  Nobia AB | 40224 |  | 82153 |
|  Nolato AB - B Shares | 52647 |  | 276874 |
|  Nordic Paper Holding AB | 2747 |  | 8698 |
|  Nordic Waterproofing Holding AB | 6754 |  | 94225 |
|  Note AB (a) | 1027 |  | 17584 |
|  NP3 Fastigheter AB (d) | 11449 |  | 218445 |
|  Nyfosa AB (d) | 44721 |  | 346652 |
|  OEM International AB - B Shares (d) | 22800 |  | 158067 |
|  Orron Energy AB (a) | 9493 |  | 20408 |
|  Ovzon AB (a) | 673 |  | 3712 |
|  Peab AB - Class B | 3697 |  | 21017 |
|  Platzer Fastigheter Holding AB - Class B | 15422 |  | 121662 |
|  Pricer AB - B Shares | 32212 |  | 50494 |
|  Proact IT Group AB | 8496 |  | 67503 |
|  Ratos AB - B Shares | 61820 |  | 246668 |
|  RaySearch Laboratories AB (a) | 7859 |  | 51388 |
|  Rejlers AB | 1659 |  | 21789 |
|  Rottneros AB | 26936 |  | 31557 |
|  Scandi Standard AB (a) | 18069 |  | 84804 |
|  Scandic Hotels Group AB (144A) (a) (d) | 33911 |  | 104534 |
|  Sdiptech AB - Class B (a) | 1095 |  | 23793 |
|  Sensys Gatso Group AB (a) | 223283 |  | 21361 |
|  SkiStar AB | 13849 |  | 147643 |
|  Softronic AB - B Shares | 3875 |  | 7996 |
|  Solid Forsakring AB (a) | 2708 |  | 17108 |
|  Stendorren Fastigheter AB (a) | 1576 |  | 29067 |
|  Stillfront Group AB (a) | 27529 |  | 46121 |
|  Systemair AB | 22572 |  | 155165 |
|  Tethys Oil AB | 2076 |  | 12068 |
|  TF Bank AB | 690 |  | 11667 |
|  Troax Group AB | 11680 |  | 204804 |
|  VBG Group AB - B Shares | 2387 |  | 31977 |
|  Vitec Software Group AB - B Shares | 5431 |  | 218360 |
|  Volati AB | 1043 |  | 8712 |
|  |  |  | 13020458 |
| **Switzerland—7.5%** | **Switzerland—7.5%** | **Switzerland—7.5%** | **Switzerland—7.5%** |
|  Adecco Group AG | 16374 |  | 538450 |
|  Aevis Victoria S.A. | 730 |  | 13835 |
|  Allreal Holding AG | 4342 |  | 707184 |

---

*See accompanying notes to financial statements.* 

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Switzerland—(Continued)** | **Switzerland—(Continued)** | **Switzerland—(Continued)** |
|  ALSO Holding AG (a) | 2049 | $376301 |
|  APG SGA S.A. | 390 | 67872 |
|  Arbonia AG | 14726 | 205255 |
|  Aryzta AG (a) | 240805 | 287178 |
|  Ascom Holding AG | 3201 | 25785 |
|  Autoneum Holding AG | 1187 | 131160 |
|  Baloise Holding AG | 8025 | 1239613 |
|  Banque Cantonale de Geneve | 750 | 145554 |
|  Banque Cantonale Vaudoise (d) | 6586 | 632542 |
|  Basilea Pharmaceutica AG (a) | 805 | 39983 |
|  Belimo Holding AG | 2620 | 1251776 |
|  Bell Food Group AG | 693 | 177960 |
|  Bellevue Group AG | 3322 | 134460 |
|  Berner Kantonalbank AG | 1494 | 359345 |
|  BKW AG | 6201 | 846109 |
|  Bossard Holding AG - Class A | 2139 | 463940 |
|  Bucher Industries AG | 2031 | 845791 |
|  Burckhardt Compression Holding AG | 714 | 424884 |
|  Burkhalter Holding AG | 1499 | 124251 |
|  Bystronic AG | 452 | 313924 |
|  Calida Holding AG | 1703 | 87074 |
|  Carlo Gavazzi Holding AG | 124 | 40333 |
|  Cembra Money Bank AG | 9521 | 793841 |
|  Cicor Technologies, Ltd. (a) | 644 | 29873 |
|  Cie Financiere Tradition S.A. (d) | 601 | 68057 |
|  Clariant AG (a) | 59367 | 944729 |
|  Coltene Holding AG (a) | 1490 | 123043 |
|  Comet Holding AG | 1743 | 370987 |
|  Daetwyler Holding AG | 1258 | 251231 |
|  DKSH Holding AG | 10401 | 790817 |
|  dormakaba Holding AG | 861 | 316390 |
|  Dufry AG (a) (d) | 18930 | 792110 |
|  EDAG Engineering Group AG | 3171 | 34286 |
|  EFG International AG (a) | 30423 | 289947 |
|  Emmi AG | 657 | 554912 |
|  Energiedienst Holding AG | 4275 | 207142 |
|  Evolva Holding S.A. (a) (d) | 84327 | 7501 |
|  Feintool International Holding AG (d) | 1764 | 38463 |
|  Fenix Outdoor International AG (d) | 1091 | 89193 |
|  Ferrexpo plc | 50160 | 95360 |
|  Flughafen Zurich AG (a) | 5491 | 850850 |
|  Forbo Holding AG | 343 | 403124 |
|  Fundamenta Real Estate AG (a) | 4539 | 79029 |
|  Galenica AG (144A) | 13396 | 1094007 |
|  GAM Holding AG (a) | 62659 | 63645 |
|  Georg Fischer AG | 25460 | 1566304 |
|  Gurit Holding AG (d) | 1430 | 139394 |
|  Helvetia Holding AG | 10528 | 1228702 |
|  Hiag Immobilien Holding AG | 1881 | 166781 |
|  Highlight Communications AG (a) | 7829 | 31536 |
|  HOCHDORF Holding AG (a) (d) | 174 | 3988 |
|  Huber & Suhner AG | 5184 | 484992 |
|  Hypothekarbank Lenzburg AG | 3 | 13302 |
|  Implenia AG (a) | 4729 | 194196 |
|  Ina Invest Holding AG (a) (d) | 1388 | 29559 |
|  Inficon Holding AG | 501 | 437702 |
|  Interroll Holding AG | 220 | 561252 |
| **Switzerland—(Continued)** | **Switzerland—(Continued)** | **Switzerland—(Continued)** |
|  Intershop Holding AG | 466 | 304123 |
|  Investis Holding S.A. | 421 | 46193 |
|  IWG plc (a) | 194505 | 390145 |
|  Jungfraubahn Holding AG (a) | 970 | 130005 |
|  Kardex Holding AG | 2137 | 352677 |
|  Komax Holding AG | 1175 | 328155 |
|  Kudelski S.A. (d) | 13221 | 33803 |
|  Landis & Gyr Group AG (a) (d) | 4662 | 328874 |
|  LEM Holding S.A. | 166 | 322226 |
|  Luzerner Kantonalbank AG | 1001 | 447111 |
|  Medacta Group S.A. (144A) | 1064 | 118990 |
|  Medmix AG (144A) | 5258 | 100327 |
|  Meier Tobler Group AG (d) | 1744 | 77284 |
|  Metall Zug AG - B Shares | 78 | 162360 |
|  Mikron Holding AG | 2145 | 20383 |
|  Mobilezone Holding AG | 13629 | 225539 |
|  Mobimo Holding AG (d) | 2335 | 594206 |
|  Novavest Real Estate AG (a) | 468 | 20646 |
|  OC Oerlikon Corp. AG | 62425 | 410885 |
|  Orascom Development Holding AG (a) (d) | 4230 | 33848 |
|  Orell Fuessli AG | 331 | 29352 |
|  Orior AG | 1947 | 154530 |
|  Phoenix Mecano AG | 274 | 97489 |
|  Plazza AG - Class A | 222 | 74410 |
|  PSP Swiss Property AG | 13459 | 1582745 |
|  Resurs Holding AB (144A) | 27086 | 64925 |
|  Rieter Holding AG (d) | 1020 | 116095 |
|  Romande Energie Holding S.A. | 111 | 134073 |
|  Schaffner Holding AG | 204 | 64565 |
|  Schweiter Technologies AG | 354 | 281964 |
|  Schweizerische Nationalbank (d) | 5 | 25942 |
|  Sensirion Holding AG (144A) (a) | 2180 | 231903 |
|  SFS Group AG | 5311 | 504055 |
|  Siegfried Holding AG (a) | 1427 | 949926 |
|  SIG Group AG (a) | 6849 | 150109 |
|  St. Galler Kantonalbank AG | 970 | 503891 |
|  Stadler Rail AG | 648 | 23064 |
|  Sulzer AG (d) | 5258 | 410544 |
|  Swiss Prime Site AG | 15133 | 1314013 |
|  Swiss Steel Holding AG (a) (d) | 161565 | 36209 |
|  Swissquote Group Holding S.A. | 3768 | 547657 |
|  Tecan Group AG | 161 | 72272 |
|  Temenos AG | 15465 | 854288 |
|  TX Group AG | 1079 | 172763 |
|  U-Blox Holding AG (a) | 2199 | 263439 |
|  V-ZUG Holding AG (a) (d) | 780 | 76912 |
|  Valiant Holding AG | 5102 | 552634 |
|  VAT Group AG (144A) | 3009 | 828727 |
|  Vaudoise Assurances Holding S.A. | 306 | 139793 |
|  Vetropack Holding AG | 4400 | 171830 |
|  Von Roll Holding AG (a) (d) | 16704 | 15552 |
|  Vontobel Holding AG | 9439 | 627652 |
|  VZ Holding AG | 4180 | 323474 |
|  Walliser Kantonalbank | 1345 | 151210 |
|  Warteck Invest AG | 53 | 130035 |
|  Ypsomed Holding AG | 692 | 126526 |
|  Zehnder Group AG | 3904 | 235379 |

---

*See accompanying notes to financial statements.* 

**BHFTII-34** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Switzerland—(Continued)** | **Switzerland—(Continued)** | **Switzerland—(Continued)** | **Switzerland—(Continued)** |
|  Zug Estates Holding AG - B Shares | 83 | $| 158895 |
|  Zuger Kantonalbank AG | 57 |  | 446742 |
|  |  |  | 39720168 |
| **Taiwan—0.0%** | **Taiwan—0.0%** | **Taiwan—0.0%** | **Taiwan—0.0%** |
|  FIT Hon Teng, Ltd. (144A) (a) (d) | 80000 |  | 20877 |
| **Tanzania—0.0%** | **Tanzania—0.0%** | **Tanzania—0.0%** | **Tanzania—0.0%** |
|  Helios Towers plc (a) | 110176 |  | 141460 |
| **United Arab Emirates—0.0%** | **United Arab Emirates—0.0%** | **United Arab Emirates—0.0%** | **United Arab Emirates—0.0%** |
|  Borr Drilling, Ltd. (a) | 19040 |  | 100673 |
|  Network International Holdings plc (144A) (a) | 11307 |  | 40497 |
|  Shelf Drilling, Ltd. (144A) (a) (d) | 19770 |  | 44739 |
|  |  |  | 185909 |
| **United Kingdom—11.4%** | **United Kingdom—11.4%** | **United Kingdom—11.4%** | **United Kingdom—11.4%** |
|  4imprint Group plc | 7046 |  | 361895 |
|  888 Holdings plc (a) | 95449 |  | 100521 |
|  A.G. Barr plc | 34817 |  | 223954 |
|  accesso Technology Group plc (a) | 2402 |  | 24094 |
|  Advanced Medical Solutions Group plc | 23347 |  | 73128 |
|  AJ Bell plc | 59750 |  | 259041 |
|  Alfa Financial Software Holdings plc (144A) | 10992 |  | 22069 |
|  Alliance Pharma plc | 95282 |  | 61019 |
|  Anglo-Eastern Plantations plc | 5782 |  | 56051 |
|  Appreciate Group plc | 23099 |  | 11564 |
|  Ascential plc (a) | 79762 |  | 194500 |
|  Ashmore Group plc | 97994 |  | 283677 |
|  Avon Protection plc | 8677 |  | 112826 |
|  Babcock International Group plc (a) | 152440 |  | 520275 |
|  Bakkavor Group plc (144A) (d) | 12493 |  | 14483 |
|  Balfour Beatty plc | 201378 |  | 819862 |
|  Beazley plc | 163069 |  | 1334683 |
|  Begbies Traynor Group plc | 20686 |  | 36326 |
|  Bellway plc | 23206 |  | 533933 |
|  Biffa plc (144A) | 56754 |  | 279537 |
|  Bloomsbury Publishing plc | 28218 |  | 153142 |
|  Bodycote plc | 64772 |  | 444273 |
|  boohoo Group plc (a) | 12408 |  | 5322 |
|  BRAEMAR plc | 7120 |  | 25398 |
|  Britvic plc | 74790 |  | 703272 |
|  Brooks Macdonald Group plc | 486 |  | 12468 |
|  Bytes Technology Group plc | 44836 |  | 209532 |
|  Capita plc (a) | 344633 |  | 101045 |
|  Capricorn Energy plc | 170133 |  | 539116 |
|  Card Factory plc (a) | 103756 |  | 98150 |
|  Carr's Group plc | 19239 |  | 28961 |
|  Castings plc | 2870 |  | 12015 |
|  Cazoo Group, Ltd. (a) | 27925 |  | 4379 |
|  Centaur Media plc | 92526 |  | 43063 |
|  Central Asia Metals plc | 20359 |  | 61072 |
|  Centrica plc | 119959 |  | 139696 |
|  Chemring Group plc | 102749 |  | 369878 |
|  Chesnara plc | 50709 |  | 173975 |
|  Clarkson plc | 8219 |  | 320378 |
| **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** |
|  Close Brothers Group plc | 45801 |  | 579817 |
|  CMC Markets plc (144A) | 42124 |  | 114183 |
|  Coats Group plc | 305341 |  | 243744 |
|  Computacenter plc | 22674 |  | 524463 |
|  Concentric AB | 10386 |  | 194164 |
|  Costain Group plc (a) | 35950 |  | 17092 |
|  Cranswick plc | 15732 |  | 585442 |
|  Crest Nicholson Holdings plc | 83456 |  | 239577 |
|  Currys plc | 250394 |  | 161572 |
|  CVS Group plc | 15668 |  | 366823 |
|  De La Rue plc (a) (d) | 52440 |  | 49756 |
|  Deliveroo plc (144A) (a) | 17186 |  | 17816 |
|  Devro plc | 56716 |  | 211376 |
|  DFS Furniture plc | 51390 |  | 96267 |
|  Dialight plc (a) (d) | 5140 |  | 19362 |
|  Dignity plc (a) (d) | 17060 |  | 85711 |
|  Diploma plc | 22123 |  | 743435 |
|  Direct Line Insurance Group plc | 32294 |  | 86585 |
|  DiscoverIE Group plc | 22813 |  | 202242 |
|  Domino's Pizza Group plc | 134943 |  | 478889 |
|  dotdigital group plc | 41626 |  | 41702 |
|  Dr. Martens plc | 56127 |  | 129716 |
|  Drax Group plc | 123481 |  | 1050593 |
|  Dunelm Group plc | 27630 |  | 325946 |
|  DWF Group plc (144A) | 31362 |  | 30503 |
|  easyJet plc (a) | 5538 |  | 21766 |
|  Ecora Resources plc | 51447 |  | 93715 |
|  EKF Diagnostics Holdings plc (d) | 38020 |  | 23018 |
|  Elementis plc (a) | 202330 |  | 293441 |
|  EMIS Group plc | 13707 |  | 310229 |
|  Energean plc | 27001 |  | 427647 |
|  EnQuest plc (a) | 515849 |  | 133934 |
|  Epwin Group plc | 14369 |  | 12592 |
|  Ergomed plc (a) | 6678 |  | 102760 |
|  Essentra plc | 94236 |  | 268325 |
|  FD Technologies plc (a) | 2592 |  | 42734 |
|  FDM Group Holdings plc | 21321 |  | 192837 |
|  Fevertree Drinks plc | 23602 |  | 293245 |
|  Firstgroup plc | 145351 |  | 177896 |
|  Flex LNG, Ltd. | 7691 |  | 252882 |
|  Flowtech Fluidpower plc | 6703 |  | 8717 |
|  Forterra plc (144A) | 58426 |  | 131863 |
|  Foxtons Group plc | 74860 |  | 26874 |
|  Frasers Group plc (a) | 47331 |  | 406648 |
|  Frontier Developments plc (a) (d) | 3312 |  | 38595 |
|  Fuller Smith & Turner plc - Class A | 9279 |  | 55699 |
|  Funding Circle Holdings plc (144A) (a) | 10326 |  | 6865 |
|  Galliford Try Holdings plc | 49848 |  | 95837 |
|  Games Workshop Group plc | 8487 |  | 879487 |
|  Gamma Communications plc | 13845 |  | 181137 |
|  Gem Diamonds, Ltd. | 44142 |  | 17348 |
|  Genel Energy plc | 14530 |  | 21888 |
|  Genuit Group plc | 68299 |  | 232069 |
|  Georgia Capital plc (a) | 7105 |  | 62702 |
|  Gooch & Housego plc (d) | 2212 |  | 14392 |
|  Goodwin plc | 188 |  | 7581 |
|  Grafton Group plc | 67734 |  | 646273 |

---

*See accompanying notes to financial statements.* 

**BHFTII-35** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** |
|  Grainger plc | 208838 | $634194 |
|  Greggs plc | 29520 | 833185 |
|  Gulf Keystone Petroleum, Ltd. | 64377 | 156425 |
|  Gym Group plc (The) (144A) (a) | 49004 | 64594 |
|  H&T Group plc (d) | 1027 | 5944 |
|  Halfords Group plc | 72677 | 184066 |
|  Harworth Group plc | 4382 | 5607 |
|  Hays plc | 457753 | 640754 |
|  Headlam Group plc | 31939 | 116819 |
|  Helical plc | 38476 | 155228 |
|  Henry Boot plc | 14477 | 41030 |
|  Hill & Smith plc | 26057 | 369589 |
|  Hilton Food Group plc | 19243 | 129899 |
|  Hiscox, Ltd. | 63641 | 838505 |
|  Hollywood Bowl Group plc | 35798 | 107812 |
|  HomeServe plc (a) | 36749 | 531813 |
|  Hunting plc | 52837 | 212700 |
|  Hyve Group plc (a) | 76414 | 67833 |
|  Ibstock plc (144A) | 123730 | 231755 |
|  IDOX plc (d) | 75537 | 59170 |
|  IG Group Holdings plc | 23097 | 218489 |
|  IMI plc | 13382 | 208300 |
|  Impax Asset Management Group plc | 13684 | 119639 |
|  Inchcape plc | 111052 | 1096127 |
|  Indivior plc (a) | 35234 | 788195 |
|  IntegraFin Holdings plc | 48598 | 177602 |
|  International Distributions Services plc | 6841 | 17635 |
|  International Personal Finance plc | 79366 | 70201 |
|  iomart Group plc | 16833 | 25459 |
|  IP Group plc | 225731 | 151417 |
|  IQE plc (a) (d) | 73580 | 44207 |
|  ITV plc | 601889 | 547523 |
|  J.D. Wetherspoon plc (a) | 21503 | 115743 |
|  James Fisher & Sons plc (a) | 17856 | 84261 |
|  James Halstead plc (d) | 59490 | 135136 |
|  Jet2 plc | 34034 | 394981 |
|  John Wood Group plc (a) | 195202 | 317360 |
|  Johnson Service Group plc | 61047 | 71569 |
|  Jupiter Fund Management plc | 156485 | 250759 |
|  Just Group plc | 224609 | 221590 |
|  Kainos Group plc | 20314 | 376868 |
|  Keller Group plc | 23721 | 229474 |
|  Kier Group plc (a) | 94700 | 67959 |
|  Kin & Carta plc (a) | 25591 | 66230 |
|  Lancashire Holdings, Ltd. | 72054 | 562770 |
|  Learning Technologies Group plc | 112961 | 157624 |
|  Liontrust Asset Management plc | 12072 | 163017 |
|  Lookers plc | 131372 | 120874 |
|  LSL Property Services plc | 25826 | 78130 |
|  Luceco plc (144A) | 31684 | 37547 |
|  M&C Saatchi plc (a) | 3677 | 6716 |
|  Man Group plc | 406273 | 1049810 |
|  Marks & Spencer Group plc (a) | 370741 | 549858 |
|  Marshalls plc | 60744 | 201367 |
|  Marston's plc (a) | 258409 | 124116 |
|  McBride plc (a) | 63975 | 15838 |
|  ME Group International plc | 89030 | 124030 |
| **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** |
|  Mears Group plc | 41542 | 104498 |
|  Medica Group plc | 4619 | 7793 |
|  Metro Bank plc (a) (d) | 2816 | 4133 |
|  Micro Focus International plc | 58651 | 375109 |
|  Midwich Group plc (d) | 2103 | 10730 |
|  Mitchells & Butlers plc (a) | 103172 | 172069 |
|  Mitie Group plc | 406977 | 367263 |
|  MJ Gleeson plc | 13112 | 54587 |
|  Moneysupermarket.com Group plc | 146027 | 339428 |
|  Moonpig Group plc (a) | 25425 | 33994 |
|  Morgan Advanced Materials plc | 95467 | 363204 |
|  Morgan Sindall Group plc | 14642 | 269256 |
|  Mortgage Advice Bureau Holdings, Ltd. | 6665 | 42973 |
|  Motorpoint group plc (a) | 14323 | 25125 |
|  MP Evans Group plc | 2300 | 22532 |
|  N Brown Group plc (a) | 62840 | 18992 |
|  Naked Wines plc (a) | 1427 | 2157 |
|  National Express Group plc (a) | 190696 | 299959 |
|  NCC Group plc | 88729 | 214862 |
|  Next Fifteen Communications Group plc | 16972 | 203145 |
|  Ninety One plc (d) | 93523 | 210243 |
|  Norcros plc | 11343 | 24682 |
|  Numis Corp. plc (d) | 16141 | 37261 |
|  Odfjell Technology Ltd. (a) | 4274 | 12623 |
|  On the Beach Group plc (144A) (a) | 32313 | 60877 |
|  OSB Group plc | 78656 | 455140 |
|  Oxford Instruments plc | 15582 | 425986 |
|  Pagegroup plc | 102025 | 569476 |
|  Pan African Resources plc | 368191 | 73442 |
|  Paragon Banking Group plc | 81611 | 555994 |
|  Parkmead Group plc (The) (a) | 28991 | 20079 |
|  PayPoint plc | 20570 | 126967 |
|  Pendragon plc (a) | 345188 | 80258 |
|  Pennon Group plc | 68031 | 731340 |
|  Petrofac, Ltd. (a) (d) | 103557 | 87969 |
|  Pets at Home Group plc | 171293 | 587195 |
|  Pharos Energy plc (a) | 50968 | 14300 |
|  Phoenix Spree Deutschland, Ltd. | 665 | 1984 |
|  Playtech plc (a) | 90374 | 555021 |
|  Polar Capital Holdings plc | 16568 | 95708 |
|  Porvair plc | 8570 | 63899 |
|  PPHE Hotel Group, Ltd. | 3290 | 49986 |
|  Premier Foods plc | 241797 | 317041 |
|  Provident Financial plc | 52029 | 120262 |
|  PZ Cussons plc | 74104 | 188570 |
|  QinetiQ Group plc | 170380 | 736075 |
|  Quilter plc (144A) | 443586 | 496893 |
|  Rank Group plc (a) | 54017 | 53266 |
|  Rathbones Group plc | 17130 | 422463 |
|  Reach plc | 127590 | 146702 |
|  Record plc | 12453 | 13737 |
|  Redde Northgate plc | 57053 | 283778 |
|  Redrow plc | 89477 | 492288 |
|  Renew Holdings plc | 8917 | 79108 |
|  Renewi plc (a) | 25541 | 184825 |
|  Renishaw plc | 7782 | 345253 |
|  Renold plc (a) | 238 | 61 |

---

*See accompanying notes to financial statements.* 

**BHFTII-36** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** |
|  Restaurant Group plc (The) (a) | 92660 | $| 34992 |
|  Ricardo plc | 13452 |  | 78305 |
|  RM plc | 43283 |  | 30176 |
|  Robert Walters plc | 16356 |  | 106441 |
|  Rotork plc | 222499 |  | 826066 |
|  RPS Group plc | 100537 |  | 267598 |
|  RWS Holdings plc | 12286 |  | 55868 |
|  S&U plc | 1188 |  | 30036 |
|  Sabre Insurance Group plc (144A) | 49439 |  | 63640 |
|  Saga plc (a) (d) | 8514 |  | 12995 |
|  Savills plc | 45458 |  | 454086 |
|  Secure Trust Bank plc | 458 |  | 4121 |
|  Senior plc | 166890 |  | 253185 |
|  Serco Group plc | 300955 |  | 562814 |
|  Serica Energy plc | 47039 |  | 161330 |
|  Severfield plc | 100890 |  | 75556 |
|  SIG plc (a) | 255262 |  | 91210 |
|  Smart Metering Systems plc | 23321 |  | 220483 |
|  Smiths News plc (d) | 20535 |  | 11612 |
|  Softcat plc | 30193 |  | 433341 |
|  Spectris plc | 22506 |  | 813092 |
|  Speedy Hire plc | 177240 |  | 85249 |
|  Spire Healthcare Group plc (144A) (a) | 62350 |  | 171697 |
|  Spirent Communications plc | 181575 |  | 571037 |
|  Sportech plc | 8446 |  | 1991 |
|  SSP Group plc (a) | 185760 |  | 512244 |
|  SThree plc | 41761 |  | 203486 |
|  Stobart Group, Ltd. (a) | 102535 |  | 6313 |
|  Studio Retail Group plc (b) (c) | 17439 |  | 4545 |
|  STV Group plc | 7194 |  | 24080 |
|  Superdry plc (a) | 18185 |  | 28196 |
|  Synthomer plc | 101465 |  | 176846 |
| T. Clarke plc (d) | 15381 |  | 22193 |
|  Tate & Lyle plc | 97547 |  | 837866 |
|  TBC Bank Group plc | 6166 |  | 169051 |
|  Telecom Plus plc | 18238 |  | 484162 |
|  Topps Tiles plc | 61961 |  | 33725 |
|  TORM plc - Class A | 8003 |  | 228344 |
|  TP ICAP Group plc | 235823 |  | 496922 |
|  Travis Perkins plc | 50576 |  | 540827 |
|  Trellus Health plc (a) | 2339 |  | 283 |
|  Trifast plc | 20432 |  | 17950 |
|  TT electronics plc | 60814 |  | 127806 |
|  Tyman plc | 21078 |  | 57352 |
|  Verici Dx plc (a) | 760 |  | 115 |
|  Vertu Motors plc | 46012 |  | 30081 |
|  Vesuvius plc | 68585 |  | 333807 |
|  Victrex plc | 25139 |  | 485272 |
|  VIDENDUM plc | 10351 |  | 135056 |
|  Virgin Money UK plc | 239897 |  | 528295 |
|  Vistry Group plc | 65780 |  | 497941 |
|  Volex plc | 20602 |  | 62445 |
|  Volution Group plc | 34155 |  | 149997 |
|  Vp plc (d) | 4147 |  | 34343 |
|  Watches of Switzerland Group plc (144A) (a) | 47460 |  | 471470 |
|  Watkin Jones plc | 46386 |  | 56285 |
|  WH Smith plc | 30332 |  | 541308 |
| **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** | **United Kingdom—(Continued)** |
|  Wickes Group plc | 76029 |  | 134480 |
|  Wincanton plc | 40925 |  | 166844 |
|  Xaar plc (a) | 18088 |  | 42575 |
|  XPS Pensions Group plc | 7428 |  | 12498 |
|  Young & Co's Brewery plc - Class A | 4640 |  | 57458 |
|  Young & Co's Brewery plc (Non-Voting Shares) | 1744 |  | 13380 |
|  Zotefoams plc | 7268 |  | 29872 |
|  |  |  | 60046883 |
| **United States—0.5%** | **United States—0.5%** | **United States—0.5%** | **United States—0.5%** |
|  ADTRAN Holdings, Inc. (d) | 14095 |  | 255014 |
|  Argonaut Gold, Inc. (a) | 80499 |  | 30915 |
|  Burford Capital, Ltd. | 35459 |  | 285552 |
|  Diversified Energy Co., plc | 191404 |  | 268861 |
|  Energy Fuels, Inc. (a) (d) | 9131 |  | 56512 |
|  Frontage Holdings Corp. (144A) (a) | 58000 |  | 21494 |
|  GXO Logistics, Inc. (a) | 245 |  | 10459 |
|  Hecla Mining Co. (d) | 2637 |  | 14662 |
|  Noble Corp. plc (a) | 4072 |  | 152804 |
|  Ormat Technologies, Inc. | 1 |  | 49 |
|  Primo Water Corp. | 2400 |  | 37296 |
|  PureTech Health plc (a) | 49670 |  | 160253 |
|  Reliance Worldwide Corp., Ltd. | 176413 |  | 354911 |
|  Samsonite International S.A. (144A) (a) | 168600 |  | 440865 |
|  Sims, Ltd. | 51085 |  | 454536 |
|  VAALCO Energy, Inc. (d) | 7990 |  | 36434 |
|  Varia US Properties AG | 1203 |  | 59932 |
|  Viemed Healthcare, Inc. (a) | 5284 |  | 39947 |
|  |  |  | 2680496 |
|  Total Common Stocks <br>(Cost $544,052,487) |  |  | 526243160 |
| **Preferred Stocks—0.3%** | **Preferred Stocks—0.3%** | **Preferred Stocks—0.3%** | **Preferred Stocks—0.3%** |
| **Germany—0.3%** | **Germany—0.3%** | **Germany—0.3%** | **Germany—0.3%** |
|  Draegerwerk AG & Co. KGaA | 3031 |  | 135141 |
|  Fuchs Petrolub SE | 17122 |  | 600073 |
|  Jungheinrich AG | 16854 |  | 479540 |
|  Sixt SE | 4716 |  | 275105 |
|  Sto SE & Co. KGaA | 618 |  | 99552 |
|  Villeroy & Boch AG | 505 |  | 9055 |
|  |  |  | 1598466 |
| **Italy—0.0%** | **Italy—0.0%** | **Italy—0.0%** | **Italy—0.0%** |
|  Danieli & C Officine Meccaniche S.p.A. (Savings Shares) | 4725 |  | 72278 |
|  Total Preferred Stocks <br>(Cost $1,800,532) |  |  | 1670744 |
| **Warrants—0.0%** | **Warrants—0.0%** | **Warrants—0.0%** | **Warrants—0.0%** |
| **Australia—0.0%** | **Australia—0.0%** | **Australia—0.0%** | **Australia—0.0%** |
|  Decmil Group, Ltd. Expires 09/06/23 (a) | 4018 |  | 0 |

---

*See accompanying notes to financial statements.* 

**BHFTII-37** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Warrants—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Italy—0.0%** | **Italy—0.0%** | **Italy—0.0%** |
|  Webuild S.p.A. Expires 08/02/30 (a) (d) | 6346 | $0 |
| **Macau—0.0%** | **Macau—0.0%** | **Macau—0.0%** |
|  MECOM Power and Construction, Ltd. Expires 05/24/23 (a) | 4600 | 87 |
| **Singapore—0.0%** | **Singapore—0.0%** | **Singapore—0.0%** |
|  Ezion Holdings, Ltd., Expires 04/16/23 (a) | 309737 | 0 |
| **Sweden—0.0%** | **Sweden—0.0%** | **Sweden—0.0%** |
|  Fingerprint Cards AB Expires 09/08/23 (a) | 1805 | 119 |
|  Total Warrants <br>(Cost $0) |  | 206 |
| **Rights—0.0%** | **Rights—0.0%** | **Rights—0.0%** |
| **Australia—0.0%** | **Australia—0.0%** | **Australia—0.0%** |
|  Centrebet International, Ltd. (Litigation Units) (a) | 9600 | 0 |
| **Austria—0.0%** | **Austria—0.0%** | **Austria—0.0%** |
|  Immofinanz AG (a) | 28505 | 0 |
|  Intercell AG (a) (b) (c) | 24163 | 0 |
|  S Immo AG (a) (b) (c) | 17333 | 0 |
|  |  | 0 |
| **Hong Kong—0.0%** | **Hong Kong—0.0%** | **Hong Kong—0.0%** |
|  Fortune Oil CVR (a) (b) (c) | 575627 | 0 |
|  Total Rights <br>(Cost $0) |  | 0 |
| **Securities Lending Reinvestments (e)— 5.1%** | **Securities Lending Reinvestments (e)— 5.1%** | **Securities Lending Reinvestments (e)— 5.1%** |
| **Repurchase Agreements—4.3%** |  |  |
|  BofA Securities, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $1,620,272; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $1,651,907. | 1619517 | 1619517 |
|  Cantor Fitzgerald & Co.<br>Repurchase Agreement dated 12/30/22 at 4.300%, due on 01/03/23 with a maturity value of $400,191; collateralized by U.S. Government Agency Obligations with rates ranging from 1.500% - 7.500%, maturity dates ranging from 01/01/23 - 07/20/71, and an aggregate market value of $408,000. | 400000 | 400000 |
|  HSBC Securities, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $2,040,963. | 2000000 | 2000000 |
|  National Bank Financial, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $4,001,920; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $4,095,477. | 4000000 | 4000000 |
| **Repurchase Agreements—(Continued)** |  |  |
|  National Bank of Canada |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $1,100,924; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $1,124,616. | 1100000 | 1100000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $3,302,855; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $3,593,134. | 3300000 | 3300000 |
|  Societe Generale |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $300,142; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $306,542. | 300000 | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $2,000,947; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.250%, maturity dates ranging from 12/31/23 - 02/15/30, and an aggregate market value of $2,040,000. | 2000000 | 2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $700,341; collateralized by various Common Stock with an aggregate market value of $778,993. | 700000 | 700000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $1,600,784; collateralized by various Common Stock with an aggregate market value of $1,780,728. | 1600000 | 1600000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $800,688; collateralized by various Common Stock with an aggregate market value of $890,554. | 800000 | 800000 |
|  TD Prime Services LLC<br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $5,002,445; collateralized by various Common Stock with an aggregate market value of $5,588,172. | 5000000 | 5000000 |
|  |  | 22819517 |
| **Mutual Funds—0.8%** | **Mutual Funds—0.8%** | **Mutual Funds—0.8%** |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (f) | 1000000 | 1000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (f) | 1000000 | 1000000 |
|  HSBC U.S. Government Money Market Fund, Class I 4.130% (f) | 2000000 | 2000000 |
|  |  | 4000000 |
|  Total Securities Lending Reinvestments <br>(Cost $26,819,516) |  | 26819517 |
|  Total Investments—104.9%<br>(Cost $572,672,535) |  | 554733627 |
|  Other assets and liabilities (net)—(4.9)% |  | (26073971) |
|  Net Assets—100.0% |  | $528659656 |

---

*See accompanying notes to financial statements.* 

**BHFTII-38** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(c) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent less than 0.05% of net assets.

(d) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $41,156,072 and the collateral received consisted of cash in the amount of $26,819,516 and non-cash collateral with a value of $17,290,406. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(e) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(f) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(144A) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $17,910,990, which is 3.4% of net assets.

---

| | |
|:---|:---|
| **Ten Largest Industries as of**<br> **December 31, 2022 (Unaudited)** | **% of<br>Net Assets** |
|  Machinery | 6.3 |
|  Metals & Mining | 5.7 |
|  Banks | 5.6 |
|  Oil, Gas & Consumable Fuels | 4.7 |
|  Real Estate Management & Development | 4.1 |
|  Electronic Equipment, Instruments & Components | 3.4 |
|  Chemicals | 3.4 |
|  Food Products | 3.4 |
|  Capital Markets | 3.3 |
|  Construction & Engineering | 3.0 |

---

**Glossary of Abbreviations** 

Other Abbreviations

------

(REIT)— Real Estate Investment Trust <br> (ADR)— American Depositary Receipt

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Australia | $654414 | $31375689 | $88677 | $32118780 |
| &nbsp;&nbsp;&nbsp;&nbsp; Austria | 31792 | 8337745 |  | 8369537 |
| &nbsp;&nbsp;&nbsp;&nbsp; Belgium |  | 8727504 |  | 8727504 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cambodia |  | 222481 |  | 222481 |
| &nbsp;&nbsp;&nbsp;&nbsp; Canada | 62234389 | 275342 | 2825 | 62512556 |
| &nbsp;&nbsp;&nbsp;&nbsp; China | 291466 | 380449 |  | 671915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Colombia | 91952 |  |  | 91952 |
| &nbsp;&nbsp;&nbsp;&nbsp; Denmark |  | 13195273 |  | 13195273 |
| &nbsp;&nbsp;&nbsp;&nbsp; Faeroe Islands |  | 21714 |  | 21714 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finland |  | 12259780 |  | 12259780 |
| &nbsp;&nbsp;&nbsp;&nbsp; France |  | 25269147 | 0 | 25269147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Georgia |  | 419592 |  | 419592 |
| &nbsp;&nbsp;&nbsp;&nbsp; Germany |  | 30096134 |  | 30096134 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ghana |  | 217945 |  | 217945 |
| &nbsp;&nbsp;&nbsp;&nbsp; Greece |  | 17032 |  | 17032 |
| &nbsp;&nbsp;&nbsp;&nbsp; Greenland |  | 11893 |  | 11893 |
| &nbsp;&nbsp;&nbsp;&nbsp; Guernsey, Channel Islands |  |  | 0 | 0 |

---

*See accompanying notes to financial statements.* 

**BHFTII-39** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Hong Kong | $944378 | $10960512 | $20116 | $11925006 |
| &nbsp;&nbsp;&nbsp;&nbsp; India |  | 83879 |  | 83879 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ireland |  | 3499005 |  | 3499005 |
| &nbsp;&nbsp;&nbsp;&nbsp; Isle of Man |  | 24667 |  | 24667 |
| &nbsp;&nbsp;&nbsp;&nbsp; Israel | 178389 | 7024934 |  | 7203323 |
| &nbsp;&nbsp;&nbsp;&nbsp; Italy |  | 18881074 | 0 | 18881074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Japan | 3706 | 132419670 |  | 132423376 |
| &nbsp;&nbsp;&nbsp;&nbsp; Jersey, Channel Islands |  | 510869 |  | 510869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Liechtenstein |  | 312931 |  | 312931 |
| &nbsp;&nbsp;&nbsp;&nbsp; Luxembourg |  | 1511708 |  | 1511708 |
| &nbsp;&nbsp;&nbsp;&nbsp; Macau |  | 317475 |  | 317475 |
| &nbsp;&nbsp;&nbsp;&nbsp; Malaysia |  | 199 |  | 199 |
| &nbsp;&nbsp;&nbsp;&nbsp; Malta |  | 15728 |  | 15728 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mongolia |  | 8657 |  | 8657 |
| &nbsp;&nbsp;&nbsp;&nbsp; Netherlands |  | 10995181 | 0 | 10995181 |
| &nbsp;&nbsp;&nbsp;&nbsp; New Zealand |  | 2522086 |  | 2522086 |
| &nbsp;&nbsp;&nbsp;&nbsp; Norway |  | 4094428 |  | 4094428 |
| &nbsp;&nbsp;&nbsp;&nbsp; Peru |  | 81311 |  | 81311 |
| &nbsp;&nbsp;&nbsp;&nbsp; Philippines |  | 19433 |  | 19433 |
| &nbsp;&nbsp;&nbsp;&nbsp; Portugal |  | 1972084 |  | 1972084 |
| &nbsp;&nbsp;&nbsp;&nbsp; Singapore | 196047 | 6393812 | 0 | 6589859 |
| &nbsp;&nbsp;&nbsp;&nbsp; South Africa |  | 740151 |  | 740151 |
| &nbsp;&nbsp;&nbsp;&nbsp; Spain |  | 12471244 | 0 | 12471244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sweden |  | 13020458 |  | 13020458 |
| &nbsp;&nbsp;&nbsp;&nbsp; Switzerland |  | 39720168 |  | 39720168 |
| &nbsp;&nbsp;&nbsp;&nbsp; Taiwan |  | 20877 |  | 20877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tanzania |  | 141460 |  | 141460 |
| &nbsp;&nbsp;&nbsp;&nbsp; United Arab Emirates | 36858 | 149051 |  | 185909 |
| &nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 6370 | 60035968 | 4545 | 60046883 |
| &nbsp;&nbsp;&nbsp;&nbsp; United States | 226225 | 2454271 |  | 2680496 |
|  Total Common Stocks | 64895986 | 461231011 | 116163 | 526243160 |
|  Total Preferred Stocks\* |  | 1670744 |  | 1670744 |
| Warrants |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Australia |  | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Italy |  | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Macau | 87 |  |  | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp; Singapore |  | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sweden | 119 |  |  | 119 |
|  Total Warrants | 206 | 0 |  | 206 |
| Rights |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Australia |  | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Austria |  | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hong Kong |  |  | 0 | 0 |
|  Total Rights |  | 0 | 0 | 0 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 22819517 |  | 22819517 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 4000000 |  |  | 4000000 |
|  Total Securities Lending Reinvestments | 4000000 | 22819517 |  | 26819517 |
|  Total Investments | $68896192 | $485721272 | $116163 | $554733627 |
|  Collateral for Securities Loaned (Liability) | $— | $(26819516) | $— | $(26819516) |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

During the year ended December 31, 2022, transfers into Level 3 in the amount of $306,538 were due to trading halts on the securities' respective exchanges which resulted in the lack of observable inputs.

During the year ended December 31, 2022, transfers out of Level 3 in the amount of $42,128 were due to the resumption of trading activity which resulted in the availability of significant observable inputs.

*See accompanying notes to financial statements.* 

**BHFTII-40** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $554733627 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (c) | 294454 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 1108682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 8976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 1724809 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 2067 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | 76962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 557949577 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 847276 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 26819516 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 223296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 575821 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 293976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 13869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 363616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 29289921 |
|  **Net Assets** | $528659656 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $527436459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 1223197 |
|  **Net Assets** | $528659656 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $463668596 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 64991060 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 49392354 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 6986401 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.39 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9.30 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $572,672,535.

(b) Includes securities loaned at value of $41,156,072.

(c) Identified cost of cash denominated in foreign currencies was $293,649.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $17586155 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 8524 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 565083 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 18159762 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 4576458 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 35700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 469824 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 171180 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 73571 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 26208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 5056 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 173404 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 5586056 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (845105) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 4740951 |
|  **Net Investment Income** | 13418811 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
| Net realized gain (loss) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 17819622 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (305179) |
|  Net realized gain (loss) | 17514443 |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (150197459) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (54866) |
|  Net change in unrealized appreciation (depreciation) | (150252325) |
|  Net realized and unrealized gain (loss) | (132737882) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(119319071) |

---

(a) Net of foreign withholding taxes of $1,710,779

*See accompanying notes to financial statements.* 

**BHFTII-41** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $13418811 | $11838484 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 17514443 | 65499786 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (150252325) | 18237005 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (119319071) | 95575275 |
|  **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (67111201) | (41845260) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | (9121187) | (5605393) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (76232388) | (47450653) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 30913982 | (75789656) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (164637477) | (27665034) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 693297133 | 720962167 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $528659656 | $693297133 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 6735 | $60090 | 4525 | $57966 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 7286775 | 67111201 | 3160518 | 41845260 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3905979) | (41054772) | (8312382) | (111152075) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3387531 | $26116519 | (5147339) | $(69248849) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 507355 | $4954004 | 366835 | $4826478 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 997942 | 9121187 | 426590 | 5605393 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (909564) | (9277728) | (1294580) | (16972678) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 595733 | $4797463 | (501155) | $(6540807) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $30913982 |  | $(75789656) |

---

*See accompanying notes to financial statements.* 

**BHFTII-42** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.25 | $12.43 | $12.22 | $11.07 | $15.32 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.25 | 0.22 | 0.16 | 0.22 | 0.23 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.59) | 1.54 | 0.75 | 2.20 | (3.05) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.34) | 1.76 | 0.91 | 2.42 | (2.82) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.30) | (0.24) | (0.29) | (0.16) | (0.40) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (1.22) | (0.70) | (0.41) | (1.11) | (1.03) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.52) | (0.94) | (0.70) | (1.27) | (1.43) |
|  **Net Asset Value, End of Period** | $9.39 | $13.25 | $12.43 | $12.22 | $11.07 |
|  **Total Return (%)** (b) | (17.47) | 14.16 | 9.12 | 23.30 | (20.37) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.96 | 0.93 | 0.94 | 0.95 | 0.93 |
|  Net ratio of expenses to average net assets (%) (c) | 0.81 | 0.83 | 0.93 | 0.94 | 0.92 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.40 | 1.69 | 1.47 | 1.95 | 1.64 |
|  Portfolio turnover rate (%) | 11 | 10 | 18 | 14 | 16 |
|  Net assets, end of period (in millions) | $463.7 | $609.4 | $636 | $594.9 | $495.7 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.13 | $12.33 | $12.13 | $10.99 | $15.22 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.22 | 0.19 | 0.13 | 0.19 | 0.19 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.57) | 1.52 | 0.74 | 2.19 | (3.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.35) | 1.71 | 0.87 | 2.38 | (2.83) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.26) | (0.21) | (0.26) | (0.13) | (0.37) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (1.22) | (0.70) | (0.41) | (1.11) | (1.03) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (1.48) | (0.91) | (0.67) | (1.24) | (1.40) |
|  **Net Asset Value, End of Period** | $9.30 | $13.13 | $12.33 | $12.13 | $10.99 |
|  **Total Return (%)** (b) | (17.70) | 13.85 | 8.79 | 23.03 | (20.56) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.21 | 1.18 | 1.19 | 1.20 | 1.18 |
|  Net ratio of expenses to average net assets (%) (c) | 1.06 | 1.08 | 1.18 | 1.19 | 1.17 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.15 | 1.44 | 1.23 | 1.70 | 1.39 |
|  Portfolio turnover rate (%) | 11 | 10 | 18 | 14 | 16 |
|  Net assets, end of period (in millions) | $65 | $83.9 | $85 | $84.3 | $74.7 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-43** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon

**BHFTII-44** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees"). A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

In consideration of recent decisions rendered by European courts, the Portfolio has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union ("EU") countries. These filings are subject to various administrative and judicial proceedings within these countries. During the year ended December 31, 2022, the Portfolio received EU tax reclaim payments in the amount of $335,762 that were not previously accrued for due to uncertainty of collectability. Such amount is included in dividends on the Statement of Operations. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

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

**BHFTII-45** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $847,276 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

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

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $22,819,517, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

**BHFTII-46** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

**BHFTII-47** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

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

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

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

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $61733995 | $0 | $82497084 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $4576458 | 0.850% | Of the first $100 million |
|  | 0.800% | On amounts in excess of $100 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Dimensional Fund Advisors LP is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.200% | Of the first $100 million |
| 0.150% | On amounts in excess of $100 million |

---

An identical expense agreement was in place for the period March 1, 2022 to April 29, 2022.

**BHFTII-48** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Prior to March 1, 2022, the Adviser had agreed, for the period April 30, 2021 to February 28, 2022, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.150% | Of the first $100 million |
| 0.100% | On amounts in excess of $100 million |

---

Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $582657163 |
|  Gross unrealized appreciation | 116740790 |
|  Gross unrealized (depreciation) | (144664326) |
|  Net unrealized appreciation (depreciation) | $(27923536) |

---

**BHFTII-49** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $22996258 | $16809617 | $53236130 | $30641036 | $76232388 | $47450653 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital<br>Losses** | **Total** |
| $12942267 | $16369862 | $(27936381) | $– $| 1375748 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-50** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse/Dimensional International Small Company Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Dimensional International Small Company Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Dimensional International Small Company Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-51** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-52** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-53** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-54** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-55** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Brighthouse/Dimensional International Small Company Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Dimensional Fund Advisors LP regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the MSCI World ex-U.S. Small Cap Index, for the one- and three-year periods ended October 31, 2022 and underperformed its benchmark for the five-year period ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-56** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Dimensional International Small Company Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board also noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio's sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contract holders to benefit from the lower sub-advisory fee effective March 1, 2022.

**BHFTII-57** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Managed by Wellington Management Company LLP** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Brighthouse/Wellington Balanced Portfolio returned -17.08%, -17.31%, and -17.26%, respectively. The Portfolio's benchmarks, the Standard & Poor's ("S&P") 500 Index¹ and the Bloomberg U.S. Aggregate Bond Index², returned -18.11% and -13.01%, respectively. A blend of the S&P 500 Index (60%) and the Bloomberg U.S. Aggregate Bond Index (40%) returned -15.79%.

**MARKET ENVIRONMENT / CONDITIONS** 

U.S. equities, as measured by the S&P 500 Index, declined over the twelve-month period ending December 31, 2022, amid surging inflation, tighter financial conditions, and moderating economic activity, we believe that has increased the probability of recession. In the first quarter of 2022, U.S. equities registered their first quarterly loss since March 2020. Fears about the economic implications of Russia's large-scale military attack on Ukraine and the prospect of aggressive monetary policy tightening by the U.S. Federal Reserve (the "Fed") drove the S&P 500 Index into correction territory in February. In March, the Fed raised interest rates by 25 basis points ("bps"), lifted its 2022 core inflation forecast to 4.1%, and cut its 2022 Gross Domestic Product ("GDP") growth forecast to 2.8%.

In the second quarter of 2022, U.S. equities fell sharply during a volatile quarter. Rampant inflation and tighter financial conditions hurt risk sentiment and increased the probability of a recession. Growth stocks significantly underperformed their value counterparts as surging Treasury yields and disappointing earnings results from some of the largest technology companies drove the Nasdaq Composite Index to its biggest quarterly loss since September 2001. The Fed responded to the larger-than-expected increase in prices by accelerating its pace of interest-rate hikes to 75 bps in June, following a 50 bps increase in May.

In the third quarter of 2022, U.S. equities fell as risk sentiment deteriorated on fears that aggressive interest-rate hikes and tighter financial conditions would constrict economic growth and drive the U.S. into recession. Stocks suffered steep losses in September after a larger-than-expected rise in core consumer prices showed that inflation continued to mount across broad areas of the economy. As expected, the Fed raised interest rates by 75 bps in September—the third straight increase of this magnitude.

U.S. equities rallied in the fourth quarter. Greater optimism that the Fed would begin to scale back its aggressive pace of interest rate hikes, along with outsized short covering and hedging, helped to fuel a sharp rebound in stocks in October and November before risk sentiment waned in December amid recession fears, macroeconomic headwinds, and downside earnings risks in the coming quarters. In December, the Fed raised interest rates by 50 bps, snapping a streak of four consecutive hikes of 75 bps. However, the Fed's Summary of Economic Projections in December indicated a more hawkish outlook compared to its September forecast.

In 2022, large-cap stocks, as measured by the S&P 500 Index, underperformed mid-cap stocks but outperformed small-cap stocks, as measured by the S&P MidCap 400 Index and Russell 2000 Index, respectively.

Fixed income markets experienced sharply negative total returns during the twelve-month period ending December 31, 2022, as the Bloomberg U.S. Aggregate Bond Index generated a return of -13.01% during the period. Global sovereign yields moved sharply higher as most major central banks supercharged their hiking cycles to deal with high inflation. The fourth quarter witnessed growing hopes of "peak inflation", even as major central banks retained hawkish stances.

Spread sectors underperformed duration-equivalent government bonds during the period. The first quarter of 2022 recorded one of the worst drawdowns in fixed income markets due in part to the shift to tighter monetary policies and uncertainty from the war in Ukraine, followed by challenging second and third quarters amid continued rising government bond yields. The fourth quarter ended on a positive note as fixed income markets recouped a portion of their losses from earlier in the year as most developed market sovereign yields stabilized at higher levels. Throughout most of the year spreads were volatile but finished wider amid increasing concerns that tighter financial conditions, resulting from a less accommodative policy, could tip the global economy into recession.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio underperformed its blended benchmark for the period ended December 31, 2022.

The Equity Portfolio underperformed its benchmark, the S&P 500 Index, for the twelve-month period ended December 31, 2022. Challenging stock selection within the Information Technology ("IT"), Health Care, and Industrials sectors detracted most from relative performance. This was partially offset by stronger stock selection within the Consumer Staples, Utilities, and Financials sectors.

The Equity Portfolio's largest individual relative detractors included not owning Exxon Mobil, an overweight position in Amazon.com and an overweight position in Meta Platforms. Shares of Exxon Mobil advanced during the period with crude oil prices soaring as tensions between Russia and Ukraine threatened to create a tighter oil market. Shares of Amazon.com fell during the period after the company reported an unexpected first quarter loss. Results from both the company's core online retailing business and its advertising unit came in short of estimates. The share price of Meta Platforms fell after management released disappointing second-quarter results and weak near-term guidance. At the end of the period, the Portfolio continued to own both Amazon.com and Meta Platforms.

Top contributors to relative performance during the period included an underweight allocation to Tesla, an out-of-benchmark position in

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Managed by Wellington Management Company LLP** 

**Portfolio Manager Commentary\*—(Continued)** 

Shell and an out-of-benchmark allocation to Performance Food Group. Shares of Tesla fell as news that CEO Elon Musk was buying Twitter for $44 billion raised investor concern. Additionally, the company continued to grapple with supply chain issues and COVID-related shutdowns in Shanghai. Shares of Shell advanced after the oil and gas conglomerate reported adjusted profit for the fourth quarter that beat consensus estimates. Shell also announced a share repurchase program to buy back $8.5 billion worth of its own shares during the first half of 2022 using proceeds from its Permian divestment and capital allocation framework. The share price of Performance Food Group rose after the company reported higher fiscal first-quarter sales and earnings as the food-services provider raised prices and benefited from a recent acquisition. The company has done an excellent job passing through price increases and expanding gross profit dollars amid a difficult macro backdrop. The Portfolio held all three positions at the end of the period.

The Fixed Income Portfolio underperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the twelve-month period ended December 31, 2022. The Portfolio's overweight to and out-of-benchmark exposure to spread sectors was the primary cause of relative underperformance. An allocation to structured finance sectors detracted from relative performance, particularly exposure to Non-Agency Residential Mortgage-Backed Securities ("RMBS"). An overweight to Agency Mortgage-Backed Securities ("MBS") pass-throughs also detracted. Out-of-benchmark exposure to High Yield ("HY") and Bank Loans detracted over the period. Positioning within Investment Grade ("IG") credit contributed favorably to relative performance, particularly Industrials issuers. The Fixed Income Portfolio implemented tactical duration positioning throughout the

period which had a positive impact on relative performance. Select exposure within emerging markets ("EM") debt also benefited performance.

During the period, the Fixed Income Portfolio used Treasury futures, swaps, and options to manage duration and yield curve positioning. The Fixed Income Portfolio also used currency forwards, futures, and options to implement non-U.S. rate and currency positions. Credit default swap index positions ("CDX"), across IG, HY, and EM were used as sources of liquidity and to manage overall portfolio risk. EM and IG CDX positions had a positive impact on performance during the period, while HY CDX had a neutral impact.

At the end of the period, the Fixed Income Portfolio had a longer duration posture relative to the benchmark. The Portfolio maintains an underweight to IG credit, as we observed better opportunities in HY, Bank Loans, and select EM corporate and sovereign exposures. The Portfolio continues to favor securitized sectors (Non-Agency RMBS, Asset-Backed Securities, and Commercial MBS).

At the end of the year, the Portfolio's asset allocation was approximately a 61% allocation to the Equity Portfolio and a 39% allocation to the Fixed Income Portfolio. This was unchanged from the beginning of the period.

**Mary Pryshlak** 

**Jonathan White** 

**Joseph F. Marvan** 

**Robert D. Burn** 

**Campe Goodman** 

Portfolio Managers

*Wellington Management Company LLP* 

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

<sup>1</sup> The S&P 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-weighted index (stock price times number of shares outstanding) with each stock's weight in the Index proportionate to its market value.

<sup>2</sup> The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX, THE BLOOMBERG U.S. AGGREGATE BOND INDEX AND THE BLENDED INDEX**![LOGO](g400082g55i60.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse/Wellington Balanced Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -17.08 | 5.67 | 8.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -17.31 | 5.41 | 8.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -17.26 | 5.51 | 8.13 |
| &nbsp;&nbsp;&nbsp;**S&P 500 Index** | -18.11 | 9.43 | 12.56 |
| &nbsp;&nbsp;&nbsp;**Bloomberg U.S. Aggregate Bond Index** | -13.01 | 0.02 | 1.06 |
| &nbsp;&nbsp;&nbsp;**Blended Index** | -15.79 | 5.96 | 8.09 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Equity Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Information Technology** | **11.6** |
| **Health Care** | **11.1** |
| **Financials** | **6.1** |
| **Communication Services** | **5.5** |
| **Consumer Discretionary** | **5.3** |

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**Top Equity Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Microsoft Corp.** | **3.6** |
| **Amazon.com, Inc.** | **2.0** |
| **Alphabet, Inc.** | **1.9** |
| **Apple, Inc.** | **1.7** |
| **Performance Food Group Co.** | **1.5** |

---

**Top Fixed Income Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Treasury & Government Agencies** | **25.4** |
| **Corporate Bonds & Notes** | **10.2** |
| **Mortgage-Backed Securities** | **5.5** |
| **Asset-Backed Securities** | **4.2** |
| **Foreign Government** | **1.4** |

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**Top Fixed Income Issuers** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Uniform Mortgage-Backed Securities 30 Yr. Pool** | **6.1** |
| **U.S. Treasury Bonds** | **5.0** |
| **Fannie Mae 30 Yr. Pool** | **3.5** |
| **Ginnie Mae II 30 Yr. Pool** | **3.2** |
| **U.S. Treasury Notes** | **2.3** |

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**BHFTII-3** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse/Wellington Balanced Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.50% | $1000.00 | $1007.10 | $2.53 |
|  | Hypothetical\* | 0.50% | $1000.00 | $1022.69 | $2.55 |
|  Class B (a) | Actual | 0.75% | $1000.00 | $1005.20 | $3.79 |
|  | Hypothetical\* | 0.75% | $1000.00 | $1021.43 | $3.82 |
|  Class E (a) | Actual | 0.65% | $1000.00 | $1005.80 | $3.29 |
|  | Hypothetical\* | 0.65% | $1000.00 | $1021.93 | $3.31 |

---

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

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

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—58.4% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.5%** | | |
|  Boeing Co. (The) (a) | 16350 | $3114512 |
|  General Dynamics Corp. | 14222 | 3528620 |
|  Lockheed Martin Corp. | 7819 | 3803865 |
|  Raytheon Technologies Corp. | 56986 | 5751027 |
|  |  | 16198024 |
| **Air Freight & Logistics—0.0%** |  |  |
|  FedEx Corp. | 3058 | 529646 |
| **Airlines—0.2%** |  |  |
|  JetBlue Airways Corp. (a) | 233227 | 1511311 |
|  Southwest Airlines Co. (a) | 12636 | 425454 |
|  |  | 1936765 |
| **Automobiles—0.2%** |  |  |
|  Ford Motor Co. | 83636 | 972687 |
|  Tesla, Inc. (a) | 10967 | 1350915 |
|  |  | 2323602 |
| **Banks—0.2%** |  |  |
|  JPMorgan Chase & Co. | 17327 | 2323551 |
| **Beverages—1.3%** |  |  |
|  Constellation Brands, Inc. - Class A | 39512 | 9156906 |
|  Monster Beverage Corp. (a) | 48089 | 4882476 |
|  |  | 14039382 |
| **Biotechnology—1.2%** |  |  |
|  Alkermes plc (a) | 16719 | 436867 |
|  Alnylam Pharmaceuticals, Inc. (a) | 3021 | 717941 |
|  Apellis Pharmaceuticals, Inc. (a) | 3712 | 191948 |
|  Ascendis Pharma A/S (ADR) (a) | 2412 | 294578 |
|  Biogen, Inc. (a) | 5107 | 1414230 |
|  Blueprint Medicines Corp. (a) (b) | 1990 | 87182 |
|  Celldex Therapeutics, Inc. (a) | 6616 | 294875 |
|  Genmab A/S (ADR) (a) (b) | 12223 | 518011 |
|  Horizon Therapeutics plc (a) | 2967 | 337645 |
|  Incyte Corp. (a) | 4709 | 378227 |
|  Karuna Therapeutics, Inc. (a) | 4694 | 922371 |
|  Moderna, Inc. (a) | 4591 | 824635 |
|  PTC Therapeutics, Inc. (a) | 5400 | 206118 |
|  Regeneron Pharmaceuticals, Inc. (a) | 3084 | 2225075 |
|  REVOLUTION Medicines, Inc. (a) (b) | 5811 | 138418 |
|  Sarepta Therapeutics, Inc. (a) | 2254 | 292073 |
|  Seagen, Inc. (a) | 4719 | 606439 |
|  Syndax Pharmaceuticals, Inc. (a) | 5925 | 150791 |
|  United Therapeutics Corp. (a) | 1534 | 426590 |
|  Vertex Pharmaceuticals, Inc. (a) | 9184 | 2652155 |
|  |  | 13116169 |
| **Building Products—0.5%** |  |  |
|  Azek Co., Inc. (The) (a) (b) | 28411 | 577311 |
|  Builders FirstSource, Inc. (a) | 30861 | 2002262 |
|  Fortune Brands Home & Security, Inc. | 22717 | 1297368 |
|  Johnson Controls International plc | 22576 | 1444864 |
| **Building Products—(Continued)** |  |  |
|  Masterbrand, Inc. | 22717 | 171513 |
|  |  | 5493318 |
| **Capital Markets—4.0%** |  |  |
|  Ares Management Corp. - Class A | 113507 | 7768419 |
|  BlackRock, Inc. | 6178 | 4377916 |
|  Charles Schwab Corp. (The) | 156525 | 13032271 |
|  Goldman Sachs Group, Inc. (The) | 19531 | 6706555 |
|  Morgan Stanley | 38630 | 3284322 |
|  MSCI, Inc. | 11245 | 5230837 |
|  Tradeweb Markets, Inc. - Class A | 49877 | 3238514 |
|  |  | 43638834 |
| **Chemicals—1.7%** |  |  |
|  Cabot Corp. | 34785 | 2325029 |
|  Celanese Corp. | 18591 | 1900744 |
|  FMC Corp. | 31357 | 3913354 |
|  Ingevity Corp. (a) | 13224 | 931499 |
|  Linde plc (b) | 16797 | 5478845 |
|  Livent Corp. (a) (b) | 33591 | 667453 |
|  PPG Industries, Inc. | 25048 | 3149536 |
|  |  | 18366460 |
| **Commercial Services & Supplies—0.3%** |  |  |
|  Aurora Innovation, Inc. (a) (b) | 87391 | 105743 |
|  Clean Harbors, Inc. (a) | 10693 | 1220285 |
|  Waste Connections, Inc. | 12495 | 1656338 |
|  |  | 2982366 |
| **Communications Equipment—0.1%** |  |  |
|  Arista Networks, Inc. (a) | 5812 | 705286 |
| **Construction & Engineering—0.2%** |  |  |
|  Fluor Corp. (a) (b) | 73095 | 2533473 |
| **Containers & Packaging—0.1%** |  |  |
|  Ball Corp. (b) | 15649 | 800290 |
| **Diversified Financial Services—0.2%** |  |  |
|  Equitable Holdings, Inc. | 75716 | 2173049 |
| **Diversified Telecommunication Services—0.4%** |  |  |
|  AT&T, Inc. | 236323 | 4350706 |
| **Electric Utilities—1.9%** |  |  |
|  Duke Energy Corp. | 62357 | 6422148 |
|  Edison International | 68960 | 4387235 |
|  Exelon Corp. | 103473 | 4473138 |
|  FirstEnergy Corp. | 118593 | 4973790 |
|  |  | 20256311 |
| **Electrical Equipment—0.2%** |  |  |
|  AMETEK, Inc. | 10672 | 1491092 |
|  Emerson Electric Co. | 5149 | 494613 |
|  |  | 1985705 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Energy Equipment & Services—0.3%** | | |
|  Schlumberger, Ltd. | 70470 | $3767326 |
| **Entertainment—0.6%** |  |  |
|  Electronic Arts, Inc. | 9428 | 1151913 |
|  Walt Disney Co. (The) (a) | 60583 | 5263451 |
|  |  | 6415364 |
| **Equity Real Estate Investment Trusts—1.2%** |  |  |
|  Kimco Realty Corp.  | 128180 | 2714852 |
|  Rexford Industrial Realty, Inc. | 29159 | 1593248 |
|  Ryman Hospitality Properties, Inc. | 34322 | 2806853 |
|  Sun Communities, Inc. | 16419 | 2347917 |
|  Welltower, Inc. | 47249 | 3097172 |
|  |  | 12560042 |
| **Food & Staples Retailing—2.0%** |  |  |
|  Performance Food Group Co. (a) | 282946 | 16521217 |
|  Sysco Corp. | 71057 | 5432308 |
|  |  | 21953525 |
| **Food Products—1.2%** |  |  |
|  Archer-Daniels-Midland Co. | 41099 | 3816042 |
|  Hershey Co. (The) | 28400 | 6576588 |
|  Kellogg Co. | 35098 | 2500382 |
|  |  | 12893012 |
| **Health Care Equipment & Supplies—1.7%** |  |  |
|  Abbott Laboratories | 24368 | 2675363 |
|  Baxter International, Inc. | 34893 | 1778496 |
|  Boston Scientific Corp. (a) | 80503 | 3724874 |
|  DexCom, Inc. (a) | 18150 | 2055306 |
|  Edwards Lifesciences Corp. (a) | 38796 | 2894569 |
|  Insulet Corp. (a) | 5222 | 1537305 |
|  Stryker Corp. | 14699 | 3593758 |
|  |  | 18259671 |
| **Health Care Providers & Services—2.6%** |  |  |
|  Agilon Health, Inc. (a) (b) | 156027 | 2518276 |
|  Centene Corp. (a) | 64282 | 5271767 |
|  Elevance Health, Inc. | 8142 | 4176601 |
|  HCA Healthcare, Inc. | 19006 | 4560680 |
|  Humana, Inc. (b) | 8426 | 4315713 |
|  Laboratory Corp. of America Holdings | 1845 | 434460 |
|  McKesson Corp. (b) | 5998 | 2249970 |
|  Molina Healthcare, Inc. (a) | 3931 | 1298095 |
|  UnitedHealth Group, Inc. | 6523 | 3458364 |
|  |  | 28283926 |
| **Hotels, Restaurants & Leisure—1.1%** |  |  |
|  Airbnb, Inc. - Class A (a) | 76129 | 6509030 |
|  Hyatt Hotels Corp. - Class A (a) | 25255 | 2284315 |
|  Starbucks Corp. | 33472 | 3320422 |
|  |  | 12113767 |
| **Household Durables—0.1%** |  |  |
|  DR Horton, Inc. | 3029 | 270005 |
|  Lennar Corp. - Class A | 9743 | 881742 |
|  |  | 1151747 |
| **Independent Power and Renewable Electricity Producers—0.4%** | **Independent Power and Renewable Electricity Producers—0.4%** |  |
|  AES Corp. (The) (b) | 134618 | 3871614 |
| **Industrial Conglomerates—0.4%** |  |  |
|  Honeywell International, Inc. | 22590 | 4841037 |
| **Insurance—1.7%** |  |  |
|  American International Group, Inc. | 55152 | 3487813 |
|  Arch Capital Group, Ltd. (a) | 38854 | 2439254 |
|  Assured Guaranty, Ltd. | 32031 | 1994250 |
|  Chubb, Ltd. | 18793 | 4145736 |
|  Marsh & McLennan Cos., Inc. | 27050 | 4476234 |
|  Trupanion, Inc. (a) (b) | 36597 | 1739455 |
|  |  | 18282742 |
| **Interactive Media & Services—3.2%** |  |  |
|  Alphabet, Inc. - Class A (a) | 231418 | 20418010 |
|  Bumble, Inc. - Class A (a) (b) | 118946 | 2503813 |
|  Cargurus, Inc. (a) (b) | 156456 | 2191949 |
|  Match Group, Inc. (a) | 38218 | 1585665 |
|  Meta Platforms, Inc. - Class A (a) | 68218 | 8209354 |
|  |  | 34908791 |
| **Internet & Direct Marketing Retail—2.6%** |  |  |
|  Amazon.com, Inc. (a) | 255900 | 21495600 |
|  Etsy, Inc. (a) (b) | 54166 | 6488004 |
|  |  | 27983604 |
| **IT Services—2.6%** |  |  |
|  Block, Inc. (a) | 41204 | 2589259 |
|  FleetCor Technologies, Inc. (a) | 7207 | 1323782 |
|  Genpact, Ltd. | 27876 | 1291216 |
|  Global Payments, Inc. | 34728 | 3449185 |
|  GoDaddy, Inc. - Class A (a) | 37046 | 2771782 |
|  Okta, Inc. (a) | 3482 | 237925 |
|  PayPal Holdings, Inc. (a) | 40785 | 2904708 |
|  Snowflake, Inc. - Class A (a) | 1802 | 258659 |
|  VeriSign, Inc. (a) | 33551 | 6892717 |
|  Visa, Inc. - Class A (b) | 18831 | 3912329 |
|  WEX, Inc. (a) | 14353 | 2348868 |
|  |  | 27980430 |
| **Life Sciences Tools & Services—1.6%** |  |  |
|  Agilent Technologies, Inc. | 27858 | 4168950 |
|  Danaher Corp. | 26977 | 7160235 |
|  ICON plc (a) | 5720 | 1111110 |
|  Illumina, Inc. (a) | 9959 | 2013710 |
|  Syneos Health, Inc. (a) | 75194 | 2758116 |
|  |  | 17212121 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **<br>Shares** | **Value** | **Value** |
| **Machinery—1.1%** | | | |
|  Caterpillar, Inc. | 7709 | $| 1846768 |
|  Flowserve Corp. | 48768 |  | 1496202 |
|  Fortive Corp. | 18462 |  | 1186184 |
|  Ingersoll Rand, Inc. | 25499 |  | 1332323 |
|  Kennametal, Inc. (b) | 28657 |  | 689487 |
|  Middleby Corp. (The) (a) (b) | 10570 |  | 1415323 |
|  PACCAR, Inc. (b) | 6935 |  | 686357 |
|  Westinghouse Air Brake Technologies Corp. | 35122 |  | 3505527 |
|  |  |  | 12158171 |
| **Media—0.7%** |  |  |  |
|  Charter Communications, Inc. - Class A (a) | 2834 |  | 961009 |
|  New York Times Co. (The) - Class A | 48319 |  | 1568435 |
|  Omnicom Group, Inc. (b) | 65183 |  | 5316977 |
|  |  |  | 7846421 |
| **Metals & Mining—0.0%** |  |  |  |
|  Foresight Energy LLC (a) | 1359 |  | 14268 |
| **Oil, Gas & Consumable Fuels—3.1%** |  |  |  |
|  BP plc (ADR) | 281008 |  | 9815609 |
|  ConocoPhillips | 67502 |  | 7965236 |
|  Diamondback Energy, Inc. | 8354 |  | 1142660 |
|  EOG Resources, Inc. | 18072 |  | 2340685 |
|  Marathon Petroleum Corp. | 32135 |  | 3740193 |
|  Shell plc (ADR) (b) | 156784 |  | 8928849 |
|  |  |  | 33933232 |
| **Pharmaceuticals—4.0%** |  |  |  |
|  Aclaris Therapeutics, Inc. (a) (b) | 11663 |  | 183692 |
|  AstraZeneca plc (ADR) | 71159 |  | 4824580 |
|  Bristol-Myers Squibb Co. | 20069 |  | 1443965 |
|  Elanco Animal Health, Inc. (a) | 66319 |  | 810418 |
|  Eli Lilly and Co. | 32498 |  | 11889068 |
|  GSK plc (ADR) (b) | 47743 |  | 1677689 |
|  Intra-Cellular Therapies, Inc. (a) | 11938 |  | 631759 |
|  Merck & Co., Inc. | 76106 |  | 8443961 |
|  Novartis AG (ADR) | 28024 |  | 2542337 |
|  Pfizer, Inc. | 163431 |  | 8374205 |
|  Royalty Pharma plc - Class A (b) | 3289 |  | 129981 |
|  Zoetis, Inc. | 19779 |  | 2898613 |
|  |  |  | 43850268 |
| **Professional Services—0.2%** |  |  |  |
|  Science Applications International Corp. | 12113 |  | 1343695 |
|  TriNet Group, Inc. (a) | 14154 |  | 959641 |
|  |  |  | 2303336 |
| **Road & Rail—0.2%** |  |  |  |
|  Knight-Swift Transportation Holdings, Inc. | 44990 |  | 2357926 |
| **Semiconductors & Semiconductor Equipment—2.2%** |  |  |  |
|  Advanced Micro Devices, Inc. (a) | 53966 |  | 3495378 |
|  Intel Corp. | 56006 |  | 1480238 |
|  KLA Corp. | 7476 |  | 2818676 |
|  Marvell Technology, Inc. | 45750 |  | 1694580 |
| **Semiconductors & Semiconductor Equipment—(Continued)** | **Semiconductors & Semiconductor Equipment—(Continued)** |  |  |
|  Micron Technology, Inc. | 55956 |  | 2796681 |
|  NVIDIA Corp. | 12062 |  | 1762741 |
|  ON Semiconductor Corp. (a) | 45484 |  | 2836837 |
|  Teradyne, Inc. | 22292 |  | 1947206 |
|  Texas Instruments, Inc. | 34213 |  | 5652672 |
|  |  |  | 24485009 |
| **Software—5.0%** |  |  |  |
|  Adobe, Inc. (a) | 4491 |  | 1511356 |
|  Ceridian HCM Holding, Inc. (a) | 39376 |  | 2525970 |
|  Guidewire Software, Inc. (a) | 9466 |  | 592193 |
|  Hashicorp, Inc. - Class A (a) (b) | 27482 |  | 751358 |
|  HubSpot, Inc. (a) | 1199 |  | 346667 |
|  Microsoft Corp. | 164414 |  | 39429765 |
|  Palo Alto Networks, Inc. (a) (b) | 5942 |  | 829147 |
|  Qualtrics International, Inc. - Class A (a) (b) | 30991 |  | 321687 |
|  Rapid7, Inc. (a) | 4392 |  | 149240 |
|  Salesforce, Inc. (a) | 28140 |  | 3731083 |
|  SentinelOne, Inc. - Class A (a) (b) | 12636 |  | 184359 |
|  ServiceNow, Inc. (a) | 6767 |  | 2627423 |
|  Workday, Inc. - Class A (a) | 7503 |  | 1255477 |
|  |  |  | 54255725 |
| **Specialty Retail—0.8%** |  |  |  |
|  TJX Cos., Inc. (The) | 106633 |  | 8487987 |
| **Technology Hardware, Storage & Peripherals—1.7%** |  |  |  |
|  Apple, Inc. (b) | 140451 |  | 18248798 |
| **Textiles, Apparel & Luxury Goods—0.5%** |  |  |  |
|  NIKE, Inc. - Class B | 50544 |  | 5914153 |
| **Tobacco—0.7%** |  |  |  |
|  Altria Group, Inc. | 34534 |  | 1578549 |
|  Philip Morris International, Inc. | 55917 |  | 5659360 |
|  |  |  | 7237909 |
| **Trading Companies & Distributors—0.2%** |  |  |  |
|  United Rentals, Inc. (a) | 1087 |  | 386342 |
|  WESCO International, Inc. (a) | 11446 |  | 1433039 |
|  |  |  | 1819381 |
| **Wireless Telecommunication Services—0.5%** |  |  |  |
|  T-Mobile U.S., Inc. (a) | 42232 |  | 5912480 |
|  Total Common Stocks <br>(Cost $594,350,407) |  |  | 635056720 |
| **U.S. Treasury & Government Agencies—25.4%** | **U.S. Treasury & Government Agencies—25.4%** | **U.S. Treasury & Government Agencies—25.4%** | **U.S. Treasury & Government Agencies—25.4%** |
| **Agency Sponsored Mortgage - Backed—16.5%** | **Agency Sponsored Mortgage - Backed—16.5%** | **Agency Sponsored Mortgage - Backed—16.5%** | **Agency Sponsored Mortgage - Backed—16.5%** |
|  Connecticut Avenue Securities Trust (CMO)<br>6.478%, SOFR30A + 2.550%, 07/25/42 (144A) (c) | 171732 |  | 172272 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.539%, 1M LIBOR + 2.150%, 09/25/31 (144A) (c) | 19882 |  | 19833 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.539%, 1M LIBOR + 2.150%, 11/25/39 (144A) (c) | 157109 |  | 153555 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 15 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/28 | 423559 | $406293 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/31 | 59691 | 57097 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/33 | 160373 | 152625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/26 | 7045 | 6876 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/29 | 140412 | 137037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/24 | 13861 | 13821 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/25 | 5257 | 5245 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/25 | 1122 | 1120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/25 | 2800 | 2789 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/26 | 108799 | 108448 |
|  Fannie Mae 20 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/40 | 312532 | 266170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/40 | 1127228 | 959992 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/41 | 336031 | 286173 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/41 | 109137 | 92945 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/41 | 408569 | 344400 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/42 | 252670 | 215182 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/40 | 717937 | 631510 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/37 | 324718 | 301246 |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/50 | 230255 | 188322 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/50 | 631691 | 516502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/51 | 373001 | 309251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 2109897 | 1723006 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/51 | 3531294 | 2882607 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 3731990 | 3047063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 1301428 | 1062292 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 07/01/51 | 584404 | 476475 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/50 | 299287 | 255539 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 698587 | 600519 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 108920 | 93290 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/51 | 336513 | 288225 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 4476335 | 3809378 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/51 | 660547 | 559605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 1220895 | 1043245 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 255672 | 217147 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 246483 | 209240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/51 | 2973315 | 2549827 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/51 | 128496 | 110034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 456724 | 391358 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 456847 | 390096 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/52 | 2038849 | 1730315 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 319985 | 271853 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/52 | 448148 | 380433 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/52 | 462254 | 394093 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/43 | 369704 | 336388 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/43 | 459779 | 418343 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/43 | 441823 | 402007 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/43 | 1175159 | 1069250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/43 | 149112 | 135673 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/50 | 209717 | 186764 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/50 | 176479 | 158020 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/51 | 154227 | 135543 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/51 | 404120 | 361860 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/51 | 200565 | 177840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/51 | 127482 | 112641 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/51 | 1032944 | 907664 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/51 | 584270 | 514350 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/43 | 14440 | 13517 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/43 | 34459 | 32215 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/43 | 83207 | 77850 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/43 | 120667 | 112924 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/44 | 140313 | 130938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/45 | 138291 | 128793 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/46 | 156800 | 145806 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/46 | 121928 | 113554 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/46 | 210062 | 195211 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/46 | 92273 | 85659 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/46 | 107030 | 99414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/46 | 573810 | 537141 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/47 | 202069 | 187814 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/47 | 443922 | 411715 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/47 | 59587 | 55658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/48 | 235966 | 218438 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/48 | 275353 | 255489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/48 | 308611 | 286648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/48 | 64423 | 59698 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/52 | 667059 | 607056 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/40 | 288567 | 277129 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/40 | 112291 | 107838 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/40 | 79840 | 76673 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/41 | 39956 | 37854 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/41 | 107159 | 102910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/42 | 61362 | 58877 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/42 | 108392 | 104093 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/45 | 12512 | 11985 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/45 | 88598 | 84863 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/46 | 25482 | 24371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/46 | 101110 | 96698 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/47 | 123198 | 118051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/47 | 427104 | 408038 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/48 | 843438 | 805552 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/48 | 151791 | 144732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/49 | 365741 | 348737 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/49 | 965244 | 924942 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/50 | 664134 | 632141 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/52 | 389740 | 367183 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/40 | 230965 | 228963 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/41 | 27313 | 27076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/41 | 108589 | 107648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/42 | 37829 | 37501 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/43 | 521561 | 512491 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/43 | 84167 | 82613 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/43 | 73290 | 71997 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/44 | 191367 | 188168 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/49 | 140645 | 137728 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/41 | 17465 | 17685 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/41 | 11115 | 11256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/01/28 | 15106 | 15146 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/33 | 18848 | 19389 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/01/37 | 107958 | 111370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/41 | 7861 | 7960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/01/28 | 531 | 539 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/34 | 76466 | 78943 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/34 | 39702 | 41067 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/35 | 339439 | 351027 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/38 | 21935 | $22756 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/01/38 | 9301 | 9711 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/01/38 | 26378 | 27495 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/38 | 6776 | 6991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/38 | 10987 | 11461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/40 | 180644 | 189571 |
|  Fannie Mae ARM Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 12M LIBOR + 1.750%, 03/01/41 (c) | 4010 | 3916 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.280%, 12M LIBOR + 1.771%, 06/01/41 (c) | 30896 | 31010 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.870%, 12M LIBOR + 1.823%, 09/01/41 (c) | 26918 | 27329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.219%, 12M LIBOR + 1.969%, 12/01/40 (c) | 9263 | 9224 |
|  Fannie Mae Connecticut Avenue Securities (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.939%, 1M LIBOR + 3.550%, 07/25/29 (c) | 176121 | 179662 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.739%, 1M LIBOR + 4.350%, 05/25/29 (c) | 300828 | 309882 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.289%, 1M LIBOR + 4.900%, 11/25/24 (c) | 75464 | 77428 |
|  Fannie Mae Interest Strip (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/25/39 | 147773 | 131629 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/25/27 (d) | 59023 | 2201 |
|  Fannie Mae Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 04/01/33 | 200057 | 164849 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/57 | 572177 | 484646 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.400%, 09/01/32 | 260000 | 238158 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/57 | 1016743 | 933906 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/58 | 598665 | 549196 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.520%, 11/01/32 | 380000 | 351722 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 07/01/32 | 175000 | 163602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.890%, 09/01/32 | 382798 | 364066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/41 | 345503 | 328407 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/51 | 635290 | 622582 |
|  Fannie Mae REMICS (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 03/25/36 (e) | 11842 | 9953 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 06/25/36 (e) | 100696 | 85220 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 06/25/41 (e) | 92510 | 71972 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 08/25/44 (c) (d) | 180801 | 8458 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 05/25/46 (c) (d) | 238302 | 9590 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 04/25/55 (c) (d) | 262120 | 9236 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 06/25/55 (c) (d) | 195495 | 8495 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 12/25/42 | 255910 | 221300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/25/51 (d) | 788737 | 128018 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/25/28 (d) | 51349 | 2344 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/25/27 (d) | 78649 | 2111 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/25/27 (d) | 42437 | 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/25/28 (d) | 257520 | 11735 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/25/43 | 406009 | 360486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/25/43 | 494793 | 443481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/25/49 | 312939 | 282769 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/25/27 (d) | 116089 | 5873 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/25/27 (d) | 75329 | 4291 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/25/30 (d) | 99685 | 7629 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/25/30 (d) | 28093 | 1791 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/25/31 (d) | 43114 | 1824 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/25/34 (d) | 1040001 | 62363 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/25/35 (d) | 73727 | 7597 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/25/39 (d) | 571742 | 55891 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/25/42 | 416000 | 378407 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/25/46 | 166025 | 134489 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae REMICS (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/25/46 (d) | 78004 | 13851 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/15/46 | 292697 | 269542 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/25/58 | 571831 | 527783 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/15/41 | 340073 | 324575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/25/42 (d) | 44531 | 5814 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/25/42 (d) | 27943 | 3344 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/25/27 (d) | 19745 | 564 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/25/43 (d) | 327211 | 62396 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/25/48 (d) | 364801 | 61414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/25/35 | 183508 | 189230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/25/37 | 51246 | 51656 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/25/40 (d) | 354398 | 53741 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/25/44 (d) | 243811 | 47768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/25/48 (d) | 260123 | 52218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.534%, 05/25/42 (c) (d) | 9625 | 808 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/25/42 (d) | 213165 | 24528 |
|  Fannie Mae-ACES<br>0.315%, 01/25/30 (c) (d) | 1885494 | 28345 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.201%, 06/25/34 (c) (d) | 4165557 | 365886 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.390%, 05/25/29 (c) (d) | 2333132 | 130484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.329%, 10/25/23 (c) | 175633 | 172399 |
|  Freddie Mac 15 Yr. Gold Pool<br>3.000%, 07/01/28 | 184295 | 176753 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/29 | 118269 | 113856 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/33 | 231872 | 218041 |
|  Freddie Mac 15 Yr. Pool<br>3.000%, 10/01/32 | 228533 | 217471 |
|  Freddie Mac 20 Yr. Gold Pool<br>2.000%, 12/01/40 | 79472 | 67681 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/41 | 554562 | 467459 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/36 | 421548 | 391504 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/37 | 273009 | 253553 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/34 | 235722 | 226180 |
|  Freddie Mac 20 Yr. Pool<br>2.000%, 05/01/41 | 511885 | 435930 |
|  Freddie Mac 30 Yr. Gold Pool<br>3.000%, 12/01/44 | 5098 | 4601 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/46 | 452896 | 406089 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/46 | 460034 | 413168 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/46 | 1032396 | 925054 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/46 | 302285 | 270786 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/47 | 283128 | 253341 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/42 | 57927 | 54320 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/42 | 72129 | 67593 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/46 | 75514 | 70226 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/47 | 279674 | 259387 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/48 | 265988 | 248523 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/42 | 242112 | 232773 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/42 | 82573 | 79387 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/42 | 107429 | 103284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/44 | 5272 | 5086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/46 | 80738 | 77422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/48 | 41144 | 39275 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/43 | 37159 | 36548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/43 | 333316 | 328060 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/39 | 3015 | $3047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/01/41 | 195220 | 197910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/33 | 44802 | 45489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/39 | 19184 | 19914 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/41 | 70119 | 72788 |
|  Freddie Mac 30 Yr. Pool<br>2.000%, 09/01/50 | 233860 | 191936 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/50 | 452252 | 369776 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 705401 | 578299 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/51 | 2189736 | 1791101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 787247 | 642383 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 435664 | 358780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 179394 | 146292 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/51 | 183135 | 150070 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/52 | 707374 | 580336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/50 | 241918 | 207486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/50 | 309467 | 263956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/50 | 967285 | 827229 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 202835 | 172920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/51 | 87411 | 74223 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 160348 | 136128 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 312936 | 265555 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/52 | 228810 | 194183 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/50 | 209133 | 184451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/47 | 112611 | 104368 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/48 | 171505 | 158775 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/49 | 722136 | 688130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/49 | 368720 | 351986 |
|  Freddie Mac ARM Non-Gold Pool<br>2.400%, 12M LIBOR + 1.900%, 02/01/41 (c) | 7050 | 6901 |
|  Freddie Mac Multifamily Structured Pass-Through Certificates<br>0.602%, 03/25/27 (c) (d) | 4054613 | 86096 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.638%, 10/25/26 (c) (d) | 1139381 | 21191 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.749%, 06/25/27 (c) (d) | 2407598 | 64600 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.882%, 11/25/30 (c) (d) | 961787 | 49987 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.024%, 10/25/30 (c) (d) | 1656300 | 97661 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.117%, 06/25/30 (c) (d) | 3037224 | 195668 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.124%, 01/25/30 (c) (d) | 2482086 | 150309 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.434%, 05/25/30 (c) (d) | 2357368 | 191696 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.572%, 05/25/30 (c) (d) | 1483527 | 131676 |
|  Freddie Mac REMICS (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 11/15/36 (e) | 9978 | 8282 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 10/15/42 | 145303 | 123508 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 07/25/50 | 160559 | 135639 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/15/28 (d) | 58545 | 2704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/25/50 (d) | 777001 | 115987 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/15/28 (d) | 119472 | 6423 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/15/32 (d) | 55365 | 1732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/15/33 (d) | 71785 | 6548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/15/44 | 387015 | 331649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/15/46 | 260938 | 240576 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 11/15/41 | 88259 | 82078 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/15/26 (d) | 23916 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/15/27 (d) | 27810 | 1053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/15/41 (d) | 63562 | 2851 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/25/42 | 520720 | 478886 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac REMICS (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/15/45 | 96347 | 86649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/27 (d) | 93122 | 2925 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/15/28 (d) | 57205 | 2213 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/15/28 (d) | 31250 | 1373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/30 (d) | 90588 | 7769 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/25/40 (d) | 344004 | 52190 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 07/15/39 | 224757 | 220728 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/15/33 (d) | 93054 | 14795 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/15/48 (d) | 132152 | 27962 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/15/33 | 22686 | 23014 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/15/36 | 54250 | 55155 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/15/46 | 73906 | 75137 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/15/36 | 62229 | 63658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/15/39 (d) | 332308 | 67593 |
|  Freddie Mac Strips<br>2.500%, 03/15/52 (d) | 806131 | 119072 |
|  Ginnie Mae I 30 Yr. Pool<br>3.000%, 12/15/44 | 18835 | 16822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/45 | 22613 | 20201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/15/45 | 176980 | 158117 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/15/45 | 802338 | 716563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/15/45 | 7386 | 6598 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 08/15/42 | 230640 | 222260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/15/42 | 305730 | 296158 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/41 | 199577 | 198313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/15/42 | 390034 | 387575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/38 | 16363 | 16747 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/15/39 | 309852 | 317174 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/15/39 | 21087 | 21586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/40 | 45315 | 46377 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/15/40 | 168599 | 175492 |
|  Ginnie Mae II 30 Yr. Pool<br>2.000%, TBA (f) | 1680000 | 1407563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/20/50 | 720601 | 608227 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/20/51 | 581452 | 504706 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/20/51 | 1932019 | 1676545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, TBA (f) | 2080000 | 1802025 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/51 | 670234 | 599601 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/20/51 | 462626 | 414159 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/51 | 756511 | 676809 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/20/51 | 1899442 | 1697201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/52 | 865000 | 770958 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/52 | 314999 | 280485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/20/52 | 6422092 | 5718421 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/20/52 | 462314 | 411733 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/46 | 344813 | 321755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/46 | 81908 | 76389 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/46 | 87113 | 81241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/47 | 397352 | 370579 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/20/47 | 71365 | 66517 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/20/47 | 80978 | 75389 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/48 | 103767 | 96672 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/49 | 310396 | 289905 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/49 | 299267 | 277773 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/51 | 84368 | 78226 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/20/52 | 492631 | 452655 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Ginnie Mae II 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, TBA (f) | 10605000 | $| 9741914 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/20/45 | 296494 |  | 285662 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/47 | 115192 |  | 109602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/20/48 | 253403 |  | 241626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/48 | 805494 |  | 772126 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, TBA (f) | 6335000 |  | 5993527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/20/46 | 39003 |  | 39094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/20/52 | 61781 |  | 60018 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, TBA (f) | 20000 |  | 19398 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/20/39 | 6847 |  | 6962 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/20/49 | 309787 |  | 308221 |
|  Government National Mortgage Association (CMO)<br>0.640%, 02/16/53 (c) (d) | 779424 |  | 12431 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/16/39 | 103430 |  | 94023 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/20/41 | 210717 |  | 186647 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/28 (d) | 49098 |  | 2360 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/35 (d) | 699526 |  | 40958 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/16/43 (d) | 62458 |  | 7998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/16/27 (d) | 18942 |  | 840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/27 (d) | 52620 |  | 2475 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/29 (d) | 340247 |  | 27617 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/40 (d) | 41530 |  | 1789 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/41 (d) | 51715 |  | 1231 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/20/42 (d) | 137631 |  | 7675 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/42 (d) | 344087 |  | 52041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/43 (d) | 42202 |  | 6578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/43 (d) | 125685 |  | 16568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/16/26 (d) | 11009 |  | 424 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/20/29 (d) | 184452 |  | 7130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/16/42 (d) | 37375 |  | 4289 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/16/42 (d) | 582047 |  | 120220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/20/43 (d) | 63397 |  | 11892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/20/44 (d) | 29474 |  | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/44 (d) | 477093 |  | 70285 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/20/47 (d) | 196140 |  | 30650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/20/45 (d) | 97038 |  | 18604 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/20/45 (d) | 380277 |  | 76405 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/20/48 (d) | 311773 |  | 52948 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/16/40 (d) | 240989 |  | 51945 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/16/41 (d) | 125284 |  | 20366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/20/43 (d) | 286179 |  | 56086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/16/47 (d) | 53726 |  | 11280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/20/39 (d) | 149626 |  | 24570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/16/47 (d) | 169094 |  | 28793 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/20/47 (d) | 107939 |  | 18978 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/20/40 (d) | 208285 |  | 38884 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/20/46 (d) | 172976 |  | 32489 |
|  Uniform Mortgage-Backed Securities 15 Yr. Pool<br>3.500%, TBA (f) | 565000 |  | 540471 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, TBA (f) | 60000 |  | 58479 |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool<br>1.500%, TBA (f) | 2050000 |  | 1577906 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, TBA (f) | 8715000 |  | 7089306 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, TBA (f) | 15606000 |  | 13210702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, TBA (f) | 874000 |  | 793857 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, TBA (f) | 34796000 |  | 33482670 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, TBA (f) | 1115000 |  | 1098522 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, TBA (f) | 9126000 |  | 9148510 |
|  |  |  | 178885313 |
| **U.S. Treasury—8.9%** |  |  |  |
|  U.S. Treasury Bonds<br>1.125%, 08/15/40 | 4162000 |  | 2584667 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 05/15/50 | 11030000 |  | 5935950 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 11/15/40 (b) | 3040000 |  | 1976356 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 11/15/50 (b) | 3460000 |  | 2058700 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 08/15/46 | 910000 |  | 644003 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 08/15/45 (b) (g) | 19040000 |  | 15330175 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 11/15/46 (b) | 1200000 |  | 961547 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/47 (h) | 6040000 |  | 4944070 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/15/52 | 2540000 |  | 2092722 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 02/15/43 | 2555000 |  | 2179734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 08/15/44 (i) | 2010000 |  | 1698371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 05/15/48 | 2465000 |  | 2071659 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 08/15/42 | 3370000 |  | 3011938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/15/42 (b) | 6395000 |  | 6261105 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/15/52 (b) | 2740000 |  | 2743853 |
|  U.S. Treasury Inflation Indexed Bond<br>0.125%, 02/15/52 (j) | 832771 |  | 538641 |
|  U.S. Treasury Inflation Indexed Notes<br>0.125%, 07/15/30 (j) | 1847866 |  | 1654465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 07/15/29 (j) | 6307934 |  | 5774586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 07/15/32 (j) | 7712136 |  | 7063674 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.750%, 07/15/28 (j) | 3157606 |  | 3007749 |
|  U.S. Treasury Notes<br>2.750%, 08/15/32 | 17015000 |  | 15494284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/31/25 (b) | 9300000 |  | 8990848 |
|  |  |  | 97019097 |
|  Total U.S. Treasury & Government Agencies <br>(Cost $308,706,976) |  |  | 275904410 |
| **Corporate Bonds & Notes—10.2%** | **Corporate Bonds & Notes—10.2%** | **Corporate Bonds & Notes—10.2%** | **Corporate Bonds & Notes—10.2%** |
| **Aerospace/Defense—0.2%** | **Aerospace/Defense—0.2%** | **Aerospace/Defense—0.2%** | **Aerospace/Defense—0.2%** |
|  Boeing Co. (The)<br>5.040%, 05/01/27 | 220000 |  | 217575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.150%, 05/01/30 (b) | 300000 |  | 292692 |
|  L3Harris Technologies, Inc.<br>3.850%, 06/15/23 | 305000 |  | 303209 |
|  Lockheed Martin Corp.<br>5.100%, 11/15/27 | 755000 |  | 771638 |
|  Northrop Grumman Corp.<br>5.150%, 05/01/40 | 175000 |  | 170089 |
|  |  |  | 1755203 |
| **Agriculture—0.1%** |  |  |  |
|  BAT Capital Corp.<br>4.742%, 03/16/32 | 865000 |  | 767536 |
|  BAT International Finance plc<br>4.448%, 03/16/28 | 585000 |  | 541804 |
|  Kernel Holding S.A.<br>6.500%, 10/17/24 | 520000 |  | 227797 |
|  Reynolds American, Inc.<br>5.700%, 08/15/35 | 120000 |  | 108320 |
|  |  |  | 1645457 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Apparel—0.1%** | | |
|  Hanesbrands, Inc.<br>4.875%, 05/15/26 (144A) (b) | 140000 | $125100 |
|  William Carter Co. (The)<br>5.625%, 03/15/27 (144A) | 765000 | 733803 |
|  |  | 858903 |
| **Auto Manufacturers—0.0%** |  |  |
|  General Motors Financial Co., Inc.<br>3.600%, 06/21/30 | 215000 | 180936 |
| **Banks—2.3%** |  |  |
|  Bank of America Corp.<br>1.658%, SOFR + 0.910%, 03/11/27 (c) | 120000 | 106164 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.898%, SOFR + 1.530%, 07/23/31 (c) | 65000 | 49888 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.922%, SOFR + 1.370%, 10/24/31 (c) | 60000 | 45833 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.572%, SOFR + 1.210%, 10/20/32 (c) | 230000 | 180137 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.687%, SOFR + 1.320%, 04/22/32 (c) | 1905000 | 1524732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.972%, SOFR + 1.330%, 02/04/33 (c) | 440000 | 354472 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.194%, 3M LIBOR + 1.180%, 07/23/30 (c) | 305000 | 262325 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.376%, SOFR + 1.580%, 04/27/28 (c) | 890000 | 851127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.948%, SOFR + 2.040%, 07/22/28 (c) | 400000 | 390664 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.015%, SOFR + 2.160%, 07/22/33 (c) | 230000 | 218360 |
|  Bank of Ireland Group plc<br>6.253%, 1Y H15 + 2.650%, 09/16/26 (144A) (c) | 925000 | 917585 |
|  Barclays plc<br>5.746%, 1Y H15 + 3.000%, 08/09/33 (c) | 200000 | 188932 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.385%, 1Y H15 + 3.300%, 11/02/28 (c) | 200000 | 208466 |
|  BNP Paribas S.A.<br>1.323%, SOFR + 1.004%, 01/13/27 (144A) (c) | 235000 | 205396 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.219%, SOFR + 2.074%, 06/09/26 (144A) (b) (c) | 465000 | 426934 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.591%, SOFR + 1.228%, 01/20/28 (144A) (b) (c) | 455000 | 400174 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 5Y USD Swap + 1.483%, 03/01/33 (144A) (c) | 575000 | 508125 |
|  Credit Suisse Group AG<br>3.091%, SOFR + 1.730%, 05/14/32 (144A) (c) | 500000 | 345473 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.442%, SOFR + 3.700%, 08/11/28 (144A) (c) | 250000 | 227674 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.537%, SOFR + 3.920%, 08/12/33 (144A) (c) | 1470000 | 1289768 |
|  Danske Bank A/S<br>5.375%, 01/12/24 (144A) | 450000 | 446273 |
|  Deutsche Bank AG<br>2.311%, SOFR + 1.219%, 11/16/27 (c) | 370000 | 313716 |
|  Goldman Sachs Group, Inc. (The)<br>2.383%, SOFR + 1.248%, 07/21/32 (c) | 660000 | 512100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.615%, SOFR + 1.281%, 04/22/32 (c) | 910000 | 725717 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, SOFR + 1.264%, 10/21/32 (c) | 75000 | 59218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.102%, SOFR + 1.410%, 02/24/33 (b) (c) | 100000 | 81198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.223%, 3M LIBOR + 1.301%, 05/01/29 (c) | 485000 | 451835 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 02/01/41 | 110000 | 114806 |
|  HSBC Holdings plc<br>2.206%, SOFR + 1.285%, 08/17/29 (c) | 200000 | 161436 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.583%, 3M LIBOR + 1.535%, 06/19/29 (c) | 620000 | 570788 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.762%, SOFR + 2.530%, 03/29/33 (c) | 630000 | 545996 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.402%, SOFR + 2.870%, 08/11/33 (c) | 1405000 | 1301062 |
|  JPMorgan Chase & Co.<br>1.470%, SOFR + 0.765%, 09/22/27 (c) | 40000 | 34631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.545%, SOFR + 1.180%, 11/08/32 (c) | 535000 | 422881 |
| **Banks—(Continued)** |  |  |
|  JPMorgan Chase & Co. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.580%, SOFR + 1.250%, 04/22/32 (c) | 225000 | 180234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.509%, 3M LIBOR + 0.945%, 01/23/29 (c) | 525000 | 476454 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.960%, 3M LIBOR + 1.245%, 01/29/27 (c) | 760000 | 724467 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.005%, 3M LIBOR + 1.120%, 04/23/29 (c) | 410000 | 379306 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.323%, SOFR + 1.560%, 04/26/28 (c) | 780000 | 744890 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.586%, SOFR + 1.800%, 04/26/33 (c) | 95000 | 87947 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.851%, SOFR + 1.990%, 07/25/28 (c) | 550000 | 536131 |
|  Landsbanki Islands | Landsbanki Islands | Landsbanki Islands |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 08/25/20 (k) (l) (q) | 320000 | 0 |
|  Morgan Stanley<br>1.593%, SOFR + 0.879%, 05/04/27 (c) | 335000 | 293874 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.794%, SOFR + 1.034%, 02/13/32 (c) | 880000 | 661373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.928%, SOFR + 1.020%, 04/28/32 (c) | 635000 | 479124 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.239%, SOFR + 1.178%, 07/21/32 (c) | 190000 | 145767 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.475%, SOFR + 1.000%, 01/21/28 (c) | 455000 | 404292 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.511%, SOFR + 1.200%, 10/20/32 (c) | 55000 | 43041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.210%, SOFR + 1.610%, 04/20/28 (c) | 470000 | 447014 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.431%, 3M LIBOR + 1.628%, 01/23/30 (c) | 130000 | 120991 |
|  Societe Generale S.A.<br>6.221%, 1Y H15 + 3.200%, 06/15/33 (144A) (c) | 1190000 | 1112989 |
|  Standard Chartered plc<br>7.767%, 1Y H15 + 3.450%, 11/16/28 (144A) (c) | 535000 | 566780 |
|  Truist Bank<br>2.250%, 03/11/30 | 375000 | 304072 |
|  UBS Group AG<br>4.751%, 1Y H15 + 1.750%, 05/12/28 (144A) (c) | 340000 | 325372 |
|  Wells Fargo & Co.<br>3.000%, 10/23/26 | 390000 | 360444 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.350%, SOFR + 1.500%, 03/02/33 (c) | 565000 | 475955 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.908%, SOFR + 1.320%, 04/25/26 (b) (c) | 330000 | 320729 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.808%, SOFR + 1.980%, 07/25/28 (c) | 375000 | 366261 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.897%, SOFR + 2.100%, 07/25/33 (b) (c) | 1560000 | 1481272 |
|  |  | 25482665 |
| **Beverages—0.1%** |  |  |
|  Anheuser-Busch InBev Worldwide, Inc.<br>5.450%, 01/23/39 | 443000 | 442029 |
|  Constellation Brands, Inc.<br>3.150%, 08/01/29 | 128000 | 112173 |
|  Keurig Dr Pepper, Inc.<br>3.950%, 04/15/29 | 440000 | 409281 |
|  |  | 963483 |
| **Biotechnology—0.1%** |  |  |
|  CSL Finance plc<br>4.050%, 04/27/29 (144A) | 325000 | 306325 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 04/27/32 (144A) (b) | 200000 | 188324 |
|  Royalty Pharma plc<br>2.150%, 09/02/31 | 840000 | 635239 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.200%, 09/02/30 | 395000 | 308717 |
|  |  | 1438605 |
| **Building Materials—0.1%** |  |  |
|  Builders FirstSource, Inc.<br>5.000%, 03/01/30 (144A) | 785000 | 695572 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Building Materials—(Continued)** | | |
|  Standard Industries, Inc.<br>3.375%, 01/15/31 (144A) | 125000 | $94063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 07/15/30 (144A) | 720000 | 586746 |
|  |  | 1376381 |
| **Chemicals—0.0%** |  |  |
|  Celanese U.S. Holdings LLC<br>6.165%, 07/15/27 (b) | 395000 | 389599 |
| **Commercial Services—0.3%** |  |  |
|  Ashtead Capital, Inc.<br>4.375%, 08/15/27 (144A) | 1000000 | 934549 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/11/32 (144A) | 200000 | 192838 |
|  Gartner, Inc.<br>4.500%, 07/01/28 (144A) | 386000 | 359879 |
|  Howard University<br>2.291%, 10/01/26 | 100000 | 89723 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.701%, 10/01/29 | 260000 | 220078 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.801%, 10/01/30 | 100000 | 83397 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.901%, 10/01/31 | 100000 | 81910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.476%, 10/01/41 | 115000 | 83378 |
|  Service Corp. International<br>3.375%, 08/15/30 | 785000 | 638132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 06/01/29 (b) | 858000 | 804396 |
|  United Rentals North America, Inc.<br>4.000%, 07/15/30 (b) | 85000 | 72658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 01/15/28 | 65000 | 61597 |
|  |  | 3622535 |
| **Computers—0.1%** |  |  |
|  Booz Allen Hamilton, Inc.<br>3.875%, 09/01/28 (144A) | 1320000 | 1169471 |
| **Cosmetics/Personal Care—0.0%** |  |  |
|  GSK Consumer Healthcare Capital U.S. LLC<br>3.375%, 03/24/29 | 490000 | 440626 |
| **Diversified Financial Services—0.2%** |  |  |
|  Capital One Financial Corp.<br>5.247%, SOFR + 2.600%, 07/26/30 (c) | 815000 | 776162 |
|  GTP Acquisition Partners I LLC<br>3.482%, 06/15/50 (144A) | 1355000 | 1262228 |
|  Intercontinental Exchange, Inc.<br>4.350%, 06/15/29 | 110000 | 106352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, 03/15/33 (b) | 55000 | 52588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 06/15/52 | 40000 | 37128 |
|  OneMain Finance Corp.<br>6.125%, 03/15/24 | 155000 | 149927 |
|  |  | 2384385 |
| **Electric—1.0%** |  |  |
|  AES Corp. (The)<br>3.300%, 07/15/25 (144A) (b) | 335000 | 315872 |
|  Alabama Power Co.<br>3.450%, 10/01/49 | 245000 | 176491 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.150%, 08/15/44 | 225000 | 186191 |
| **Electric—(Continued)** |  |  |
|  Berkshire Hathaway Energy Co.<br>1.650%, 05/15/31 | 165000 | 127712 |
|  Cleco Corporate Holdings LLC<br>3.375%, 09/15/29 | 255000 | 216904 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.973%, 05/01/46 | 20000 | 16859 |
|  Consolidated Edison Co. of New York, Inc.<br>3.200%, 12/01/51 | 250000 | 172945 |
|  Dominion Energy, Inc.<br>5.375%, 11/15/32 | 340000 | 337003 |
|  Duke Energy Carolinas LLC<br>4.250%, 12/15/41 | 275000 | 237327 |
|  Duke Energy Corp.<br>2.550%, 06/15/31 | 680000 | 554071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/15/32 (b) | 375000 | 351263 |
|  Duke Energy Indiana LLC<br>2.750%, 04/01/50 | 145000 | 91031 |
|  Duke Energy Progress LLC | Duke Energy Progress LLC | Duke Energy Progress LLC |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/52 | 130000 | 103988 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 03/30/44 | 320000 | 275147 |
|  Edison International<br>6.950%, 11/15/29 | 115000 | 120092 |
|  Emera, Inc.<br>6.750%, 3M LIBOR + 5.440%, 06/15/76 (c) | 240000 | 230453 |
|  Evergy Metro, Inc.<br>2.250%, 06/01/30 | 10000 | 8227 |
|  Evergy, Inc.<br>2.450%, 09/15/24 | 85000 | 80696 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.900%, 09/15/29 | 345000 | 297921 |
|  Georgia Power Co.<br>4.300%, 03/15/42 | 80000 | 68691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 05/15/32 | 170000 | 163890 |
|  Investment Energy Resources, Ltd.<br>6.250%, 04/26/29 (144A) | 200000 | 191100 |
|  IPALCO Enterprises, Inc.<br>3.700%, 09/01/24 | 335000 | 324621 |
|  ITC Holdings Corp.<br>2.950%, 05/14/30 (144A) | 290000 | 244628 |
|  Jersey Central Power & Light Co.<br>2.750%, 03/01/32 (144A) | 140000 | 113055 |
|  National Rural Utilities Cooperative Finance Corp.<br>4.800%, 03/15/28 | 305000 | 302389 |
|  NextEra Energy Capital Holdings, Inc.<br>4.625%, 07/15/27 | 625000 | 614535 |
|  NRG Energy, Inc.<br>2.450%, 12/02/27 (144A) | 360000 | 298280 |
|  Oglethorpe Power Corp.<br>4.500%, 04/01/47 (144A) | 130000 | 103209 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.050%, 10/01/48 | 115000 | 98326 |
|  Pacific Gas and Electric Co.<br>2.500%, 02/01/31 | 840000 | 651745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 03/01/32 | 70000 | 61097 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 07/01/50 | 862000 | 667913 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 03/01/52 | 128000 | 104494 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.900%, 06/15/32 | 400000 | 390316 |
|  Puget Energy, Inc.<br>3.650%, 05/15/25 | 270000 | 256804 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.100%, 06/15/30 | 360000 | 321466 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Electric—(Continued)** | | |
|  Sempra Energy<br>3.400%, 02/01/28 (b) | 365000 | $338756 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 02/01/38 | 165000 | 135307 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/48 | 50000 | 38964 |
|  Southern California Edison Co.<br>2.250%, 06/01/30 | 150000 | 123533 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 02/01/32 | 415000 | 347466 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.850%, 08/01/29 | 315000 | 273768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 03/01/48 | 69000 | 55060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 06/01/27 | 315000 | 308447 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.850%, 11/01/27 | 90000 | 92636 |
|  Xcel Energy, Inc.<br>4.600%, 06/01/32 | 185000 | 176681 |
|  |  | 10767370 |
| **Energy-Alternate Sources—0.1%** |  |  |
|  Energo-Pro A.S.<br>8.500%, 02/04/27 (144A) | 645000 | 589188 |
|  FS Luxembourg Sarl<br>10.000%, 12/15/25 (144A) | 245000 | 246085 |
|  |  | 835273 |
| **Engineering & Construction—0.1%** |  |  |
|  IHS Holding, Ltd.<br>6.250%, 11/29/28 (144A) | 390000 | 314558 |
|  International Airport Finance S.A.<br>12.000%, 03/15/33 (144A) | 919292 | 904009 |
|  |  | 1218567 |
| **Entertainment—0.2%** |  |  |
|  Warnermedia Holdings, Inc. | Warnermedia Holdings, Inc. | Warnermedia Holdings, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.279%, 03/15/32 (144A) (b) | 320000 | 263605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.141%, 03/15/52 (144A) | 1090000 | 792393 |
|  WMG Acquisition Corp.<br>3.875%, 07/15/30 (144A) | 855000 | 736454 |
|  |  | 1792452 |
| **Environmental Control—0.1%** |  |  |
|  Clean Harbors, Inc.<br>4.875%, 07/15/27 (144A) | 1195000 | 1132262 |
| **Food—0.1%** |  |  |
|  Conagra Brands, Inc.<br>1.375%, 11/01/27 | 255000 | 212430 |
|  Mondelez International, Inc.<br>3.000%, 03/17/32 | 175000 | 149692 |
|  NBM U.S. Holdings, Inc.<br>7.000%, 05/14/26 (144A) | 635000 | 630561 |
|  |  | 992683 |
| **Gas—0.0%** |  |  |
|  NiSource, Inc.<br>3.490%, 05/15/27 | 425000 | 400309 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 05/01/30 | 90000 | 80138 |
|  |  | 480447 |
| **Healthcare-Products—0.3%** |  |  |
|  Alcon Finance Corp.<br>2.750%, 09/23/26 (144A) | 200000 | 183011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/23/29 (144A) | 265000 | 230719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 12/06/32 | 200000 | 201016 |
|  Avantor Funding, Inc.<br>4.625%, 07/15/28 (144A) | 780000 | 708739 |
|  Baxter International, Inc.<br>2.539%, 02/01/32 (b) | 695000 | 552103 |
|  GE HealthCare Technologies, Inc.<br>5.650%, 11/15/27 (b) | 265000 | 268101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.857%, 03/15/30 | 425000 | 434929 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.905%, 11/22/32 (b) | 180000 | 186516 |
|  Hologic, Inc.<br>4.625%, 02/01/28 (144A) | 658000 | 620030 |
|  |  | 3385164 |
| **Healthcare-Services—0.4%** |  |  |
|  Centene Corp.<br>2.450%, 07/15/28 | 215000 | 181471 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 02/15/30 | 20000 | 16907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 12/15/27 | 110000 | 103165 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 12/15/29 (b) | 1185000 | 1082895 |
|  CommonSpirit Health<br>3.347%, 10/01/29 | 80000 | 69620 |
|  Elevance Health, Inc.<br>5.350%, 10/15/25 | 25000 | 25277 |
|  Humana, Inc.<br>3.700%, 03/23/29 | 465000 | 425726 |
|  Kaiser Foundation Hospitals<br>2.810%, 06/01/41 | 110000 | 79702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.002%, 06/01/51 (b) | 270000 | 183883 |
|  Sutter Health<br>3.361%, 08/15/50 | 210000 | 142331 |
|  UnitedHealth Group, Inc. | UnitedHealth Group, Inc. | UnitedHealth Group, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 05/15/40 | 315000 | 228528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/15/39 (b) | 60000 | 49037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/15/29 | 340000 | 324699 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 05/15/32 | 100000 | 94927 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 05/15/62 | 60000 | 56153 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 02/15/28 | 450000 | 460004 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.350%, 02/15/33 | 355000 | 366249 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 02/15/53 | 45000 | 48589 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.050%, 02/15/63 | 65000 | 70534 |
|  |  | 4009697 |
| **Home Builders—0.1%** |  |  |
|  PulteGroup, Inc.<br>5.500%, 03/01/26 | 583000 | 585073 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Home Builders—(Continued)** | | |
|  Taylor Morrison Communities, Inc.<br>5.125%, 08/01/30 (144A) | 120000 | $103948 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 01/15/28 (144A) | 623000 | 583348 |
|  Toll Brothers Finance Corp.<br>4.875%, 11/15/25 | 130000 | 127045 |
|  |  | 1399414 |
| **Insurance—0.3%** |  |  |
|  Athene Global Funding Corp.<br>2.646%, 10/04/31 (144A) | 445000 | 339960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.717%, 01/07/29 (144A) | 735000 | 606927 |
|  Corebridge Financial, Inc.<br>3.850%, 04/05/29 (144A) | 160000 | 145729 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.900%, 04/05/32 (144A) (b) | 70000 | 61135 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 5Y H15 + 3.846%, 12/15/52 (144A) (c) | 1005000 | 928655 |
|  Equitable Financial Life Global Funding<br>1.800%, 03/08/28 (144A) | 755000 | 628020 |
|  Marsh & McLennan Cos., Inc.<br>4.750%, 03/15/39 | 245000 | 225127 |
|  Unum Group<br>4.125%, 06/15/51 | 45000 | 30661 |
|  Willis North America, Inc.<br>3.600%, 05/15/24 | 130000 | 126455 |
|  |  | 3092669 |
| **Internet—0.2%** |  |  |
|  Amazon.com, Inc.<br>3.875%, 08/22/37 | 135000 | 119599 |
|  Gen Digital, Inc.<br>5.000%, 04/15/25 (144A) | 905000 | 880271 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.750%, 09/30/27 (144A) | 260000 | 254800 |
|  Go Daddy Operating Co. LLC / GD Finance Co., Inc.<br>3.500%, 03/01/29 (144A) | 170000 | 142323 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 12/01/27 (144A) | 983000 | 930370 |
|  |  | 2327363 |
| **Iron/Steel—0.1%** |  |  |
|  ArcelorMittal S.A.<br>6.550%, 11/29/27 | 145000 | 145682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.800%, 11/29/32 | 95000 | 94463 |
|  Metinvest B.V.<br>5.625%, 06/17/25 (144A) (EUR) | 355000 | 204445 |
|  Steel Dynamics, Inc.<br>3.250%, 10/15/50 | 20000 | 12967 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.450%, 04/15/30 | 100000 | 87928 |
|  |  | 545485 |
| **Machinery-Diversified—0.0%** |  |  |
|  Otis Worldwide Corp.<br>2.565%, 02/15/30 (b) | 455000 | 382291 |
| **Media—0.5%** |  |  |
|  Charter Communications Operating LLC / Charter Communications Operating Capital Corp.<br>4.400%, 04/01/33 (b) | 310000 | 265254 |
| **Media—(Continued)** |  |  |
|  Charter Communications Operating LLC / Charter Communications Operating Capital Corp |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/01/49 | 160000 | 120986 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 04/01/48 | 5000 | 4093 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.484%, 10/23/45 | 1290000 | 1163289 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.834%, 10/23/55 | 90000 | 83028 |
|  Comcast Corp.<br>2.937%, 11/01/56 | 54000 | 33395 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.987%, 11/01/63 | 157000 | 94931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 11/01/39 | 30000 | 23371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 04/01/40 | 220000 | 181440 |
|  COX Communications, Inc.<br>2.600%, 06/15/31 (144A) | 350000 | 278724 |
|  Discovery Communications LLC<br>4.000%, 09/15/55 | 516000 | 310050 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.200%, 09/20/47 | 190000 | 141136 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.300%, 05/15/49 | 517000 | 390898 |
|  Paramount Global<br>4.200%, 06/01/29 | 45000 | 40066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 05/19/32 | 260000 | 212802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 03/15/43 | 400000 | 275442 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 01/15/31 (b) | 655000 | 582111 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.850%, 09/01/43 | 40000 | 33215 |
|  Sirius XM Radio, Inc.<br>3.125%, 09/01/26 (144A) | 835000 | 741430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/28 (144A) | 70000 | 60921 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 07/01/30 (144A) (b) | 100000 | 82521 |
|  Time Warner Cable LLC<br>4.500%, 09/15/42 | 200000 | 146421 |
|  |  | 5265524 |
| **Mining—0.1%** |  |  |
|  Anglo American Capital plc<br>2.625%, 09/10/30 (144A) | 585000 | 475421 |
|  Freeport Indonesia PT<br>5.315%, 04/14/32 (144A) | 250000 | 229308 |
|  |  | 704729 |
| **Office/Business Equipment—0.1%** |  |  |
|  CDW LLC / CDW Finance Corp.<br>2.670%, 12/01/26 | 120000 | 106538 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 02/15/29 | 1304000 | 1110604 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.276%, 12/01/28 | 110000 | 94177 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.569%, 12/01/31 | 105000 | 86524 |
|  |  | 1397843 |
| **Oil & Gas—0.5%** |  |  |
|  Aker BP ASA<br>2.000%, 07/15/26 (144A) | 200000 | 176662 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.100%, 07/15/31 (144A) | 375000 | 307546 |
|  BP Capital Markets America, Inc.<br>2.939%, 06/04/51 | 245000 | 161309 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/24/50 | 85000 | 56692 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.633%, 04/06/30 | 120000 | 110129 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Oil & Gas—(Continued)** | | |
|  ConocoPhillips Co.<br>3.800%, 03/15/52 | 15000 | $11792 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.025%, 03/15/62 | 90000 | 70848 |
|  Continental Resources, Inc.<br>5.750%, 01/15/31 (144A) | 125000 | 116358 |
|  Diamondback Energy, Inc.<br>6.250%, 03/15/33 | 95000 | 96422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 03/15/53 | 110000 | 106299 |
|  Ecopetrol S.A.<br>4.625%, 11/02/31 | 455000 | 347547 |
|  Energean Israel Finance, Ltd.<br>4.500%, 03/30/24 (144A) | 180000 | 173700 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 03/30/26 (144A) | 155000 | 143049 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 03/30/31 (144A) | 155000 | 135044 |
|  EQT Corp.<br>5.700%, 04/01/28 | 45000 | 44758 |
|  Equinor ASA<br>3.625%, 04/06/40 | 170000 | 139722 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.700%, 04/06/50 (b) | 110000 | 86748 |
|  Hess Corp.<br>7.125%, 03/15/33 | 87000 | 93704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.300%, 08/15/31 | 190000 | 206283 |
|  Leviathan Bond, Ltd.<br>6.500%, 06/30/27 (144A) | 480000 | 464448 |
|  Ovintiv, Inc.<br>6.500%, 08/15/34 | 85000 | 85531 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 08/15/37 | 190000 | 191092 |
|  Shell International Finance B.V.<br>2.875%, 11/26/41 | 120000 | 87040 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/26/51 (b) | 155000 | 104953 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 04/06/50 | 125000 | 89660 |
|  Tullow Oil plc<br>7.000%, 03/01/25 (144A) | 500000 | 301759 |
|  Var Energi ASA<br>7.500%, 01/15/28 (144A) | 530000 | 539859 |
|  Viper Energy Partners L.P.<br>5.375%, 11/01/27 (144A) | 535000 | 507988 |
|  |  | 4956942 |
| **Packaging & Containers—0.1%** |  |  |
|  Ball Corp.<br>4.000%, 11/15/23 | 1200000 | 1176143 |
| **Pharmaceuticals—0.0%** |  |  |
|  CVS Health Corp.<br>4.125%, 04/01/40 | 155000 | 128966 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/20/45 | 125000 | 113926 |
|  |  | 242892 |
| **Pipelines—0.3%** |  |  |
|  DCP Midstream Operating L.P.<br>3.875%, 03/15/23 | 20000 | 19886 |
|  Energy Transfer L.P.<br>5.250%, 04/15/29 | 40000 | 38678 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.300%, 04/01/44 | 35000 | 29550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.550%, 02/15/28 | 240000 | 238063 |
| **Pipelines—(Continued)** |  |  |
|  Energy Transfer L.P. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 02/15/33 | 155000 | 151646 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 10/01/43 | 20000 | 18375 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 12/15/45 | 260000 | 240563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 04/15/49 | 60000 | 55792 |
|  Enterprise Products Operating LLC<br>4.250%, 02/15/48 | 50000 | 40121 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 10/15/54 | 155000 | 129003 |
|  EQM Midstream Partners L.P.<br>6.500%, 07/01/27 (144A) | 30000 | 28673 |
|  Galaxy Pipeline Assets Bidco, Ltd.<br>2.940%, 09/30/40 (144A) | 241633 | 194006 |
|  MPLX L.P.<br>4.950%, 09/01/32 | 405000 | 379763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 03/14/52 | 145000 | 118442 |
|  NGPL PipeCo LLC<br>3.250%, 07/15/31 (144A) | 210000 | 170815 |
|  ONEOK, Inc.<br>3.100%, 03/15/30 | 240000 | 201122 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.400%, 09/01/29 | 255000 | 220386 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 07/15/28 | 95000 | 89662 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.100%, 11/15/32 | 215000 | 214989 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.350%, 01/15/31 | 57000 | 57909 |
|  Plains All American Pipeline L.P. / PAA Finance Corp.<br>3.800%, 09/15/30 | 355000 | 308524 |
|  Targa Resources Corp.<br>4.200%, 02/01/33 | 220000 | 189280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 07/01/52 | 225000 | 212344 |
|  Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.<br>4.875%, 02/01/31 | 65000 | 58692 |
|  Transcontinental Gas Pipe Line Co. LLC<br>3.250%, 05/15/30 | 125000 | 108474 |
|  Williams Cos., Inc. (The)<br>4.650%, 08/15/32 (b) | 300000 | 279271 |
|  |  | 3794029 |
| **Real Estate Investment Trusts—0.3%** |  |  |
|  American Tower Corp.<br>2.700%, 04/15/31 | 80000 | 65116 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 03/15/27 | 280000 | 261515 |
|  Crown Castle, Inc.<br>2.900%, 03/15/27 | 240000 | 218293 |
|  EPR Properties<br>4.950%, 04/15/28 | 400000 | 341270 |
|  GLP Capital L.P. / GLP Financing II, Inc.<br>4.000%, 01/15/31 | 195000 | 167271 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.300%, 01/15/29 (b) | 235000 | 222390 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 06/01/28 | 270000 | 264743 |
|  SBA Tower Trust<br>2.836%, 01/15/50 (144A) | 545000 | 513672 |
|  VICI Properties L.P.<br>4.950%, 02/15/30 | 596000 | 567343 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 05/15/32 | 135000 | 125003 |
|  |  | 2746616 |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Retail—0.3%** | | |
|  AutoZone, Inc.<br>4.750%, 08/01/32 | 220000 | $213221 |
|  FirstCash, Inc.<br>4.625%, 09/01/28 (144A) | 758000 | 665494 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 01/01/30 (144A) | 585000 | 520688 |
|  Gap, Inc. (The)<br>3.625%, 10/01/29 (144A) | 487000 | 343530 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 10/01/31 (144A) (b) | 913000 | 636923 |
|  Home Depot, Inc. (The)<br>3.300%, 04/15/40 | 165000 | 131373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/15/32 | 175000 | 170870 |
|  Lowe's Cos., Inc.<br>5.000%, 04/15/33 (b) | 210000 | 205004 |
|  O'Reilly Automotive, Inc.<br>4.700%, 06/15/32 (b) | 370000 | 357631 |
|  |  | 3244734 |
| **Semiconductors—0.3%** |  |  |
|  Broadcom, Inc.<br>3.137%, 11/15/35 (144A) | 31000 | 22793 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.419%, 04/15/33 (144A) | 480000 | 384820 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/15/29 (144A) | 645000 | 585945 |
|  Intel Corp.<br>3.100%, 02/15/60 | 275000 | 169493 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/05/29 | 400000 | 380486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, 08/05/52 (b) | 390000 | 345016 |
|  Marvell Technology, Inc.<br>2.450%, 04/15/28 | 380000 | 321648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.950%, 04/15/31 | 150000 | 120651 |
|  Micron Technology, Inc.<br>6.750%, 11/01/29 | 85000 | 86341 |
|  NVIDIA Corp.<br>3.500%, 04/01/40 | 235000 | 190305 |
|  NXP B.V. / NXP Funding LLC<br>5.550%, 12/01/28 | 165000 | 164779 |
|  NXP B.V. / NXP Funding LLC / NXP USA, Inc.<br>4.300%, 06/18/29 | 116000 | 108147 |
|  Qorvo, Inc.<br>3.375%, 04/01/31 (144A) | 140000 | 112481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 10/15/29 | 65000 | 57475 |
|  |  | 3050380 |
| **Software—0.5%** |  |  |
|  Black Knight InfoServ LLC<br>3.625%, 09/01/28 (144A) | 1478000 | 1279209 |
|  Fair Isaac Corp.<br>4.000%, 06/15/28 (144A) | 853000 | 774103 |
|  MSCI, Inc.<br>4.000%, 11/15/29 (144A) (b) | 190000 | 165497 |
|  Open Text Corp.<br>3.875%, 12/01/29 (144A) (b) | 740000 | 595099 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.900%, 12/01/27 | 395000 | 395000 |
|  Open Text Holdings, Inc.<br>4.125%, 12/01/31 (144A) (b) | 130000 | 101048 |
| **Software—(Continued)** |  |  |
|  Oracle Corp.<br>3.850%, 04/01/60 | 885000 | 588024 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/46 | 5000 | 3644 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/15/47 | 135000 | 98671 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.100%, 03/25/61 | 225000 | 156188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 05/15/45 | 15000 | 11313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.150%, 11/09/29 | 405000 | 420376 |
|  SS&C Technologies, Inc.<br>5.500%, 09/30/27 (144A) | 735000 | 688251 |
|  |  | 5276423 |
| **Telecommunications—0.3%** |  |  |
|  AT&T, Inc.<br>3.550%, 09/15/55 | 959000 | 639887 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 06/01/51 | 45000 | 31694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 09/15/59 | 31000 | 20749 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 12/01/57 | 251000 | 173173 |
|  Nokia Oyj<br>4.375%, 06/12/27 | 720000 | 679730 |
|  Rogers Communications, Inc.<br>3.800%, 03/15/32 (144A) | 65000 | 56092 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 03/15/52 (144A) | 240000 | 186069 |
|  T-Mobile USA, Inc.<br>2.050%, 02/15/28 | 500000 | 429416 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.200%, 01/15/33 (b) | 105000 | 104053 |
|  Verizon Communications, Inc.<br>2.355%, 03/15/32 | 455000 | 360679 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, 11/20/40 | 65000 | 43874 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.850%, 09/03/41 | 180000 | 123876 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 11/01/42 | 85000 | 67366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/22/50 | 5000 | 3912 |
|  |  | 2920570 |
| **Tobacco—0.1%** |  |  |
|  Philip Morris International, Inc.<br>5.125%, 11/17/27 | 465000 | 468396 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 11/17/29 | 205000 | 207968 |
|  |  | 676364 |
| **Trucking & Leasing—0.2%** |  |  |
|  DAE Funding LLC<br>1.550%, 08/01/24 (144A) | 885000 | 822439 |
|  Penske Truck Leasing Co. L.P. / PTL Finance Corp.<br>2.700%, 11/01/24 (144A) | 455000 | 428894 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/25 (144A) | 365000 | 349218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 07/01/27 (144A) | 285000 | 270449 |
|  |  | 1871000 |
|  Total Corporate Bonds & Notes <br>(Cost $127,302,644) |  | 111393575 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—5.5%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Collateralized Mortgage Obligations—3.5%** | | |
|  Adjustable Rate Mortgage Trust<br>4.889%, 1M LIBOR + 0.500%, 01/25/36 (c) | 68732 | $62188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.929%, 1M LIBOR + 0.540%, 11/25/35 (c) | 37568 | 36550 |
|  Alternative Loan Trust<br>3.398%, 12M MTA + 1.350%, 08/25/35 (c) | 166136 | 136176 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.839%, 1M LIBOR + 0.450%, 03/01/38 (c) | 133613 | 101837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.929%, 1M LIBOR + 0.540%, 01/25/36 (c) | 68937 | 60326 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.189%, 1M LIBOR + 0.800%, 12/25/35 (c) | 75425 | 64429 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/25/35 | 346694 | 200031 |
|  Angel Oak Mortgage Trust LLC<br>0.951%, 07/25/66 (144A) (c) | 736683 | 600900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.985%, 04/25/66 (144A) (c) | 292687 | 240233 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.990%, 04/25/53 (144A) (c) | 278948 | 259483 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.068%, 05/25/66 (144A) (c) | 591491 | 485762 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.820%, 11/25/66 (144A) (c) | 518240 | 428011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.920%, 11/25/48 (144A) (c) | 10936 | 10875 |
|  Arroyo Mortgage Trust<br>3.347%, 04/25/49 (144A) (c) | 359721 | 332741 |
|  Bear Stearns Adjustable Rate Mortgage Trust<br>3.310%, 07/25/36 (c) | 144576 | 122754 |
|  Bear Stearns ALT-A Trust<br>4.869%, 1M LIBOR + 0.480%, 02/25/36 (c) | 299608 | 291290 |
|  Bear Stearns Mortgage Funding Trust<br>4.569%, 1M LIBOR + 0.180%, 10/25/36 (c) | 77258 | 63578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.789%, 1M LIBOR + 0.400%, 02/25/37 (c) | 301066 | 261571 |
|  BINOM Securitization Trust<br>2.034%, 06/25/56 (144A) (c) | 351721 | 308291 |
|  BRAVO Residential Funding Trust<br>0.941%, 02/25/49 (144A) (c) | 207045 | 171615 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.970%, 03/25/60 (144A) (c) | 203503 | 190562 |
|  Citigroup Mortgage Loan Trust<br>6.228%, 11/25/70 (144A) (m) | 350198 | 344635 |
|  COLT Mortgage Loan Trust<br>0.910%, 06/25/66 (144A) (c) | 466528 | 376069 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.956%, 09/27/66 (144A) (c) | 848569 | 655989 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.301%, 03/25/67 (144A) (c) | 187232 | 178881 |
|  Countrywide Home Loan Mortgage Pass-Through Trust<br>3.127%, 06/20/35 (c) | 4843 | 4438 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.632%, 09/25/47 (c) | 183354 | 158599 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.789%, 1M LIBOR + 0.400%, 04/25/46 (c) | 172688 | 140838 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.069%, 1M LIBOR + 0.680%, 02/25/35 (c) | 67549 | 55909 |
|  CSMC Trust<br>0.938%, 05/25/66 (144A) (c) | 434946 | 335493 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.179%, 02/25/66 (144A) (c) | 598177 | 495348 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.796%, 12/27/60 (144A) (c) | 304690 | 278371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.841%, 10/25/66 (144A) (c) | 536752 | 455329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.265%, 11/25/66 (144A) (c) | 1252936 | 1074954 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 04/25/47 (144A) (c) | 308777 | 274167 |
|  Deephaven Residential Mortgage Trust<br>0.899%, 04/25/66 (144A) (c) | 206066 | 173188 |
|  Deutsche ALT-A Securities Mortgage Loan Trust<br>4.689%, 1M LIBOR + 0.300%, 12/25/36 (c) | 166386 | 153420 |
|  Ellington Financial Mortgage Trust<br>0.931%, 06/25/66 (144A) (c) | 198972 | 153039 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.206%, 01/25/67 (144A) (c) | 588322 | 492176 |
| **Collateralized Mortgage Obligations—(Continued)** |  |  |
|  GCAT LLC <br>1.036%, 05/25/66 (144A) (c) | 410735 | 319221 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.091%, 05/25/66 (144A) (c) | 550866 | 438107 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.262%, 07/25/66 (144A) (c) | 1047793 | 823459 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.915%, 08/25/66 (144A) (c) | 407620 | 356897 |
|  GreenPoint Mortgage Funding Trust<br>3.448%, 12M MTA + 1.400%, 10/25/45 (c) | 135158 | 105128 |
|  GSR Mortgage Loan Trust | GSR Mortgage Loan Trust | GSR Mortgage Loan Trust |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.796%, 01/25/36 (c) | 171776 | 164681 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.689%, 1M LIBOR + 0.300%, 01/25/37 (c) | 438883 | 120898 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/25/37 | 138700 | 96533 |
|  Imperial Fund Mortgage Trust<br>3.638%, 03/25/67 (144A) (m) | 1236187 | 1122324 |
|  IndyMac INDX Mortgage Loan Trust<br>3.201%, 10/25/35 (c) | 8876 | 7897 |
|  JPMorgan Mortgage Trust<br>3.349%, 05/25/36 (c) | 11721 | 9445 |
|  Legacy Mortgage Asset Trust<br>1.650%, 11/25/60 (144A) (m) | 201844 | 180427 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 04/25/61 (144A) (m) | 305138 | 275811 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 07/25/61 (144A) (m) | 394905 | 356953 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 11/25/59 (144A) (m) | 715702 | 714427 |
|  LSTAR Securities Investment, Ltd.<br>5.820%, 1M LIBOR + 1.700%, 03/02/26 (144A) (c) | 684620 | 597247 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.169%, 1M LIBOR + 1.800%, 02/01/26 (144A) (c) | 481208 | 474702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.869%, 1M LIBOR + 3.500%, 04/01/24 (144A) (c) | 219637 | 218168 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.869%, 1M LIBOR + 3.500%, 05/01/24 (144A) (c) | 419917 | 406702 |
|  MASTR Adjustable Rate Mortgages Trust<br>3.264%, 09/25/33 (c) | 48165 | 43494 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.874%, 11/21/34 (c) | 34904 | 31314 |
|  Metlife Securitization Trust<br>3.750%, 03/25/57 (144A) (c) | 312254 | 293199 |
|  MFA Trust<br>1.029%, 11/25/64 (144A) (c) | 313006 | 254088 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.153%, 04/25/65 (144A) (c) | 252651 | 217981 |
|  Mill City Mortgage Loan Trust<br>3.485%, 04/25/66 (144A) (c) | 736960 | 698075 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/25/58 (144A) (c) | 335656 | 320459 |
|  Morgan Stanley Mortgage Loan Trust<br>3.662%, 05/25/36 (c) | 134356 | 63223 |
|  New Residential Mortgage Loan Trust<br>0.941%, 10/25/58 (144A) (c) | 211591 | 182913 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.492%, 09/25/59 (144A) (c) | 88968 | 80152 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/25/59 (144A) (c) | 332812 | 307645 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 11/26/35 (144A) (c) | 304450 | 281852 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.932%, 09/25/57 (144A) (c) | 456947 | 423083 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/25/57 (144A) (c) | 560901 | 527170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/25/57 (144A) (c) | 578956 | 542431 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/25/57 (144A) (c) | 461309 | 435341 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/25/57 (144A) (c) | 319877 | 297269 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.139%, 1M LIBOR + 0.750%, 01/25/48 (144A) (c) | 411308 | 394332 |
|  NMLT Trust<br>1.185%, 05/25/56 (144A) (c) | 883364 | 704422 |
|  OBX Trust | OBX Trust | OBX Trust |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.054%, 07/25/61 (144A) (c) | 523276 | 393307 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.072%, 02/25/66 (144A) (c) | 558392 | 434381 |

---

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Collateralized Mortgage Obligations—(Continued)** | | |
|  OBX Trust | OBX Trust | OBX Trust |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.305%, 11/25/61 (144A) (c) | 1031604 | $884038 |
|  Preston Ridge Partners Mortgage LLC<br>1.793%, 06/25/26 (144A) (m) | 557846 | 505118 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.793%, 07/25/26 (144A) (m) | 515955 | 465826 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.867%, 04/25/26 (144A) (m) | 964266 | 861822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.363%, 11/25/25 (144A) (m) | 138867 | 128139 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.363%, 10/25/26 (144A) (m) | 1020502 | 918668 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.487%, 10/25/26 (144A) (m) | 445985 | 412372 |
|  RALI Series Trust<br>4.989%, 1M LIBOR + 0.600%, 04/25/36 (c) | 454689 | 375590 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/25/35 | 124407 | 104263 |
|  RFMSI Trust<br>3.491%, 08/25/35 (c) | 50147 | 24554 |
|  Seasoned Credit Risk Transfer Trust<br>2.500%, 08/25/59 | 497688 | 422477 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/25/57 | 413137 | 380536 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/25/58 | 810300 | 731239 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/25/58 | 1135048 | 1036923 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/25/58 | 222473 | 202425 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/25/58 | 879802 | 797134 |
|  Starwood Mortgage Residential Trust<br>0.943%, 05/25/65 (144A) (c) | 164932 | 152238 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.219%, 05/25/65 (144A) (c) | 462698 | 417960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.920%, 11/25/66 (144A) (c) | 825237 | 683719 |
|  Structured Adjustable Rate Mortgage Loan Trust<br>4.689%, 1M LIBOR + 0.300%, 09/25/34 (c) | 34914 | 29936 |
|  Toorak Mortgage Corp., Ltd.<br>2.240%, 06/25/24 (144A) (m) | 670000 | 633615 |
|  Towd Point Mortgage Trust<br>2.750%, 10/25/56 (144A) (c) | 206397 | 202926 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 04/25/57 (144A) (c) | 40197 | 39677 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 06/25/57 (144A) (c) | 332037 | 314915 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.918%, 11/30/60 (144A) (c) | 1244337 | 998238 |
|  Verus Securitization Trust<br>0.918%, 02/25/64 (144A) (c) | 270420 | 245127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.938%, 07/25/66 (144A) (c) | 363056 | 279326 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.031%, 02/25/66 (144A) (c) | 239724 | 199068 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.824%, 11/25/66 (144A) (c) | 562922 | 474090 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.829%, 10/25/66 (144A) (c) | 1131671 | 949563 |
|  WaMu Mortgage Pass-Through Certificates Trust<br>2.928%, 12M MTA + 0.880%, 10/25/46 (c) | 122662 | 101947 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.227%, 06/25/37 (c) | 67979 | 58677 |
|  Washington Mutual Mortgage Pass-Through Certificates<br>4.989%, 1M LIBOR + 0.600%, 07/25/36 (c) | 55068 | 34785 |
|  Wells Fargo Mortgage-Backed Securities Trust<br>4.198%, 09/25/36 (c) | 44047 | 40626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.240%, 10/25/36 (c) | 47590 | 43638 |
|  |  | 38096399 |
| **Commercial Mortgage-Backed Securities—2.0%** |  |  |
|  BANK<br>0.595%, 11/15/62 (c) (d) | 4552295 | 145732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.640%, 11/15/62 (c) (d) | 2242973 | 78557 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.693%, 12/15/52 (c) (d) | 3638107 | 134524 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.713%, 11/15/50 (c) (d) | 6842298 | 189135 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.767%, 11/15/54 (c) (d) | 793344 | 23930 |
| **Commercial Mortgage-Backed Securities—(Continued)** |  |  |
|  BANK | BANK | BANK |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.814%, 09/15/62 (c) (d) | 4060893 | 168545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.893%, 05/15/62 (c) (d) | 2876180 | 123481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.779%, 03/15/63 (c) (d) | 4910280 | 485805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.036%, 02/15/54 | 565000 | 449897 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.688%, 02/15/61 | 1700000 | 1583404 |
|  Barclays Commercial Mortgage Trust<br>0.987%, 04/15/53 (c) (d) | 1280000 | 75160 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.460%, 02/15/50 (c) (d) | 4831363 | 225582 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, 06/15/55 (c) | 245000 | 235704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.968%, 12/15/51 (c) | 475000 | 397956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.293%, 1M LIBOR + 0.975%, 08/15/36 (144A) (c) | 1802000 | 1770192 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.439%, 12/15/55 (c) | 325000 | 333418 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.710%, 12/15/55 (c) | 105000 | 109861 |
|  Benchmark Mortgage Trust<br>0.506%, 07/15/51 (c) (d) | 4254602 | 72051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.531%, 01/15/51 (c) (d) | 1825239 | 36160 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.033%, 08/15/52 (c) (d) | 1984828 | 82419 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.221%, 03/15/62 (c) (d) | 6077116 | 314549 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.516%, 01/15/54 (c) (d) | 2359204 | 204209 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.789%, 07/15/53 (c) (d) | 1324502 | 103917 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.882%, 02/15/51 (c) | 795000 | 750205 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.016%, 03/15/52 | 1600000 | 1507033 |
|  BPR Trust<br>7.568%, 1M TSFR + 3.232%, 08/15/24 (144A) (c) | 575000 | 565844 |
|  BX Commercial Mortgage Trust<br>5.370%, 1M TSFR + 1.034%, 10/15/36 (144A) (c) | 910718 | 899489 |
|  BX Trust<br>6.787%, 1M TSFR + 2.451%, 08/15/39 (144A) (c) | 583252 | 582104 |
|  CAMB Commercial Mortgage Trust<br>6.868%, 1M LIBOR + 2.550%, 12/15/37 (144A) (c) | 665000 | 633268 |
|  Century Plaza Towers<br>2.865%, 11/13/39 (144A) | 585000 | 466263 |
|  Citigroup Commercial Mortgage Trust<br>0.904%, 07/10/47 (c) (d) | 3086512 | 33700 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.017%, 04/10/48 (c) (d) | 3737629 | 69178 |
|  Commercial Mortgage Pass-Through Certificates Mortgage Trust<br>0.512%, 02/10/47 (c) (d) | 2559624 | 9815 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.637%, 08/10/46 (c) (d) | 606180 | 1116 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.258%, 10/15/45 (c) (d) | 84458 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.819%, 01/10/39 (144A) | 205000 | 175862 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.853%, 10/15/45 | 16325 | 16234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.101%, 03/10/46 | 70140 | 69915 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.213%, 03/10/46 | 117319 | 116537 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.612%, 06/10/46 (c) | 216028 | 214657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.796%, 08/10/47 | 225000 | 217598 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.896%, 01/10/39 (144A) (c) | 210000 | 171282 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.961%, 03/10/47 | 235125 | 229789 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.074%, 02/10/47 (c) | 115000 | 112840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.205%, 08/10/46 | 90975 | 89963 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.210%, 08/10/46 (c) | 175000 | 173813 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.236%, 02/10/47 (c) | 190000 | 186753 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 10/15/45 (144A) (c) | 273831 | 18959 |
|  Credit Suisse First Boston Mortgage Securities Corp.<br>4.877%, 04/15/37 | 749 | 735 |

---

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Commercial Mortgage-Backed Securities—(Continued)** | | |
|  CSAIL Commercial Mortgage Trust<br>0.717%, 06/15/57 (c) (d) | 10877874 | $136744 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.899%, 11/15/48 (c) (d) | 675612 | 13990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.863%, 01/15/49 (c) (d) | 1478113 | 69352 |
|  DBJPM Mortgage Trust<br>1.709%, 09/15/53 (c) (d) | 1008656 | 69994 |
|  GS Mortgage Securities Corp.<br>2.954%, 11/05/34 (144A) | 1200000 | 1049025 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.067%, 1M TSFR + 0.731%, 08/15/36 (144A) (c) | 90000 | 88740 |
|  GS Mortgage Securities Trust | GS Mortgage Securities Trust | GS Mortgage Securities Trust |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 08/10/44 (144A) (c) (d) | 142108 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.060%, 07/10/46 (c) (d) | 9795390 | 279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.001%, 04/10/47 (144A) (c) | 465000 | 350929 |
|  JPMBB Commercial Mortgage Securities Trust<br>0.596%, 09/15/47 (c) (d) | 2732680 | 20080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.363%, 07/15/45 | 37822 | 37539 |
|  JPMorgan Chase Commercial Mortgage Securities Trust<br>2.733%, 10/15/45 (144A) (c) | 293827 | 266718 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.812%, 01/16/37 (144A) | 305000 | 275467 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.064%, 12/15/47 (144A) (c) | 130000 | 107542 |
|  Morgan Stanley Bank of America Merrill Lynch Trust<br>0.954%, 12/15/47 (c) (d) | 1745947 | 23243 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.967%, 10/15/48 (c) (d) | 730345 | 11969 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.766%, 11/15/46 | 160061 | 157383 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.259%, 10/15/46 (c) | 115000 | 113694 |
|  Morgan Stanley Capital Trust<br>1.325%, 06/15/50 (c) (d) | 1495180 | 56185 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.912%, 09/09/32 (144A) | 1140000 | 1008201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.083%, 07/15/49 (144A) (c) | 265000 | 145527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.275%, 10/12/52 (144A) (c) | 12137 | 5321 |
|  SFAVE Commercial Mortgage Securities Trust<br>3.872%, 01/05/43 (144A) (c) | 150000 | 102274 |
|  SG Commercial Mortgage Securities Trust<br>2.632%, 03/15/37 (144A) | 1230000 | 1132207 |
|  UBS Commercial Mortgage Trust<br>1.075%, 08/15/50 (c) (d) | 707844 | 26303 |
|  UBS-Barclays Commercial Mortgage Trust<br>3.185%, 03/10/46 | 544 | 543 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.244%, 04/10/46 | 202299 | 200807 |
|  Wells Fargo Commercial Mortgage Trust<br>0.878%, 09/15/57 (c) (d) | 4594062 | 90106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.073%, 05/15/48 (c) (d) | 2682648 | 47603 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.942%, 10/15/49 | 890000 | 814718 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.149%, 05/15/48 (c) | 80000 | 68331 |
| WF-RBS Commercial Mortgage Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.239%, 03/15/47 (c) (d) | 1300418 | 11033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.016%, 11/15/47 (144A) | 86806 | 5096 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.345%, 05/15/45 | 100000 | 98942 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.723%, 05/15/47 | 84713 | 82453 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.995%, 05/15/47 | 160281 | 156125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.045%, 03/15/47 | 40000 | 39240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.101%, 03/15/47 | 335000 | 327528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/15/44 (144A) (c) | 105000 | 70069 |
|  |  | 21938444 |
|  Total Mortgage-Backed Securities <br>(Cost $71,842,420) |  | 60034843 |

---

---

| | | |
|:---|:---|:---|
| **Asset-Backed Securities—4.2%** | **Asset-Backed Securities—4.2%** | **Asset-Backed Securities—4.2%** |
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Asset-Backed - Automobile—0.7%** | | |
|  American Credit Acceptance Receivables Trust<br>4.550%, 10/13/26 (144A) | 55000 | $53915 |
|  AmeriCredit Automobile Receivables Trust<br>2.580%, 09/18/25 | 535000 | 514373 |
|  Carvana Auto Receivables Trust<br>4.130%, 04/12/27 | 970000 | 944540 |
|  Credit Acceptance Auto Loan Trust<br>1.000%, 05/15/30 (144A) | 370000 | 353410 |
|  Drive Auto Receivables Trust<br>2.700%, 02/16/27 | 403643 | 397529 |
|  Exeter Automobile Receivables Trust<br>2.580%, 09/15/25 (144A) | 844748 | 830570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.730%, 12/15/25 (144A) | 312439 | 306315 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.570%, 01/15/27 | 370000 | 363032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.030%, 08/16/27 | 162000 | 162192 |
|  Flagship Credit Auto Trust<br>4.690%, 07/17/28 (144A) | 503000 | 490973 |
|  GLS Auto Receivables Issuer Trust<br>4.920%, 01/15/27 (144A) | 90000 | 88135 |
|  Santander Drive Auto Receivables Trust<br>1.480%, 01/15/27 | 140000 | 133585 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.420%, 11/15/27 | 735000 | 711124 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.430%, 03/15/27 | 235000 | 228506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.720%, 06/15/27 | 165000 | 162133 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 01/17/28 | 650000 | 656259 |
|  Westlake Automobile Receivables Trust<br>1.650%, 02/17/26 (144A) | 415000 | 393255 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.720%, 11/15/24 (144A) | 506288 | 502984 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.310%, 09/15/27 (144A) | 560000 | 545232 |
|  |  | 7838062 |
| **Asset-Backed - Credit Card—0.1%** |  |  |
|  Mercury Financial Credit Card Master Trust<br>1.540%, 03/20/26 (144A) | 495000 | 472257 |
| **Asset-Backed - Home Equity—0.1%** |  |  |
|  GSAA Home Equity Trust<br>4.489%, 1M LIBOR + 0.100%, 12/25/46 (c) | 47789 | 24255 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.989%, 1M LIBOR + 0.600%, 03/25/36 (c) | 536765 | 291181 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.985%, 06/25/36 (c) | 434016 | 113563 |
|  Renaissance Home Equity Loan Trust<br>6.120%, 11/25/36 (m) | 239171 | 95746 |
|  Soundview Home Loan Trust<br>4.889%, 1M LIBOR + 0.500%, 11/25/36 (c) | 399172 | 369132 |
|  |  | 893877 |
| **Asset-Backed - Other—3.3%** |  |  |
|  510 Asset Backed Trust<br>2.116%, 06/25/61 (144A) (m) | 801991 | 718959 |
|  Affirm Asset Securitization Trust<br>1.900%, 01/15/25 (144A) | 114020 | 110925 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.460%, 10/15/24 (144A) | 49852 | 49444 |
|  Amur Equipment Finance Receivables XI LLC Trust<br>5.300%, 06/21/28 (144A) | 260000 | 257130 |

---

*See accompanying notes to financial statements.* 

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Other—(Continued)** | | | |
|  Apex Credit CLO, Ltd.<br>5.325%, 3M LIBOR + 1.000%, 04/24/29 (144A) (c) | 791963 | $| 782179 |
|  Apollo Aviation Securitization Trust<br>3.351%, 01/16/40 (144A) | 124544 |  | 99764 |
|  Arbor Realty Commercial Real Estate Notes, Ltd.<br>5.418%, 1M LIBOR + 1.100%, 05/15/36 (144A) (c) | 210000 |  | 203980 |
|  Avant Loans Funding Trust<br>1.210%, 07/15/30 (144A) | 455000 |  | 433360 |
|  Bain Capital Credit CLO, Ltd.<br>5.538%, 3M LIBOR + 1.180%, 07/25/34 (144A) (c) | 1325000 |  | 1290233 |
|  BlueMountain CLO, Ltd.<br>5.343%, 3M LIBOR + 1.100%, 04/20/34 (144A) (c) | 825000 |  | 800286 |
|  Buckhorn Park CLO, Ltd.<br>5.314%, 3M LIBOR + 1.120%, 07/18/34 (144A) (c) | 555000 |  | 541899 |
|  CF Hippolyta LLC<br>1.990%, 07/15/60 (144A) | 246187 |  | 203062 |
|  Cirrus Funding, Ltd.<br>4.800%, 01/25/37 (144A) | 940000 |  | 901581 |
|  Domino's Pizza Master Issuer LLC<br>2.662%, 04/25/51 (144A) | 512200 |  | 425988 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.668%, 10/25/49 (144A) | 320925 |  | 277228 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.116%, 07/25/48 (144A) | 672000 |  | 636102 |
|  Finance America Mortgage Loan Trust<br>5.439%, 1M LIBOR + 1.050%, 09/25/33 (c) | 43496 |  | 41308 |
|  FirstKey Homes Trust<br>4.145%, 05/17/39 (144A) | 288369 |  | 270443 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 07/17/39 (144A) | 1183308 |  | 1115943 |
|  GMACM Home Equity Loan Trust<br>4.889%, 1M LIBOR + 0.500%, 10/25/34 (144A) (c) | 11132 |  | 11006 |
|  Harriman Park CLO, Ltd.<br>5.363%, 3M LIBOR + 1.120%, 04/20/34 (144A) (c) | 1655000 |  | 1621218 |
|  KKR CLO, Ltd.<br>5.079%, 3M LIBOR + 1.000%, 04/15/31 (144A) (c) | 1230000 |  | 1207250 |
|  Knollwood CDO, Ltd.<br>7.109%, 3M LIBOR + 3.200%, 01/10/39 (144A) (c) | 790358 |  | 79 |
|  LCM, Ltd.<br>5.283%, 3M LIBOR + 1.040%, 10/20/27 (144A) (c) | 305177 |  | 303349 |
|  Madison Park Funding, Ltd.<br>5.199%, 3M LIBOR + 1.120%, 07/17/34 (144A) (c) | 1330000 |  | 1296528 |
|  MF1, Ltd.<br>5.576%, SOFR30A + 1.750%, 02/19/37 (144A) (c) | 685000 |  | 648814 |
|  MFA LLC<br>2.363%, 03/25/60 (144A) (m) | 655740 |  | 615507 |
|  Morgan Stanley ABS Capital I, Inc. Trust<br>4.689%, 1M LIBOR + 0.300%, 06/25/36 (c) | 8013 |  | 6936 |
|  NRZ Excess Spread-Collateralized Notes<br>3.844%, 12/25/25 (144A) | 103921 |  | 94707 |
|  Octagon Investment Partners, Ltd.<br>5.204%, 3M TSFR + 1.340%, 04/15/35 (144A) (c) | 1155000 |  | 1113198 |
|  OZLM, Ltd.<br>5.089%, 3M LIBOR + 1.010%, 07/17/29 (144A) (c) | 244274 |  | 241317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.099%, 3M LIBOR + 1.020%, 04/15/31 (144A) (c) | 900000 |  | 876988 |
|  Pretium Mortgage Credit Partners LLC<br>1.992%, 06/27/60 (144A) (m) | 506450 |  | 446574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.992%, 02/25/61 (144A) (m) | 866000 |  | 780576 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.487%, 07/25/51 (144A) (m) | 430025 |  | 397284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.981%, 01/25/52 (144A) (m) | 1121353 |  | 1001365 |
| **Asset-Backed - Other—(Continued)** |  |  |  |
|  Progress Residential Trust<br>1.510%, 10/17/38 (144A) | 808070 |  | 688439 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 04/17/39 (144A) | 280000 |  | 253805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.438%, 05/17/41 (144A) | 764424 |  | 709357 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.451%, 06/17/39 (144A) | 216426 |  | 202979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 10/27/39 (144A) | 350000 |  | 336611 |
|  Regatta VI Funding, Ltd.<br>5.403%, 3M LIBOR + 1.160%, 04/20/34 (144A) (c) | 1200000 |  | 1166332 |
|  RR 16, Ltd.<br>5.189%, 3M LIBOR + 1.110%, 07/15/36 (144A) (c) | 1175000 |  | 1148513 |
|  RR, Ltd.<br>5.229%, 3M LIBOR + 1.150%, 07/15/35 (144A) (c) | 1365000 |  | 1334599 |
|  Sapphire Aviation Finance II, Ltd.<br>3.228%, 03/15/40 (144A) | 186658 |  | 141135 |
|  Sound Point CLO XXIX, Ltd.<br>5.428%, 3M LIBOR + 1.070%, 04/25/34 (144A) (c) | 1300000 |  | 1251162 |
|  Summit Issuer LLC<br>2.290%, 12/20/50 (144A) | 320000 |  | 280154 |
|  Symphony CLO, Ltd.<br>4.961%, 3M LIBOR + 0.950%, 07/14/26 (144A) (c) | 48951 |  | 48929 |
|  Taco Bell Funding LLC<br>2.294%, 08/25/51 (144A) | 1903770 |  | 1529428 |
|  Tricon Residential Trust<br>4.849%, 07/17/40 (144A) | 771961 |  | 725021 |
|  Upstart Securitization Trust<br>0.830%, 07/20/31 (144A) | 105884 |  | 103695 |
|  VCAT Asset Securitization LLC<br>1.743%, 05/25/51 (144A) (m) | 485997 |  | 420852 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.115%, 03/27/51 (144A) (m) | 145611 |  | 131573 |
|  Venture CLO, Ltd.<br>5.209%, 3M LIBOR + 1.130%, 04/15/34 (144A) (c) | 1300000 |  | 1256694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.319%, 3M LIBOR + 1.240%, 04/15/34 (144A) (c) | 500000 |  | 484601 |
|  VOLT XCIV LLC<br>2.240%, 02/27/51 (144A) (m) | 548232 |  | 495608 |
|  Voya CLO, Ltd.<br>5.094%, 3M LIBOR + 0.900%, 01/18/29 (144A) (c) | 1063702 |  | 1052821 |
|  Wellfleet CLO X, Ltd.<br>5.413%, 3M LIBOR + 1.170%, 07/20/32 (144A) (c) | 1065000 |  | 1028860 |
|  Wendy's Funding LLC<br>2.370%, 06/15/51 (144A) | 1167225 |  | 942329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.884%, 03/15/48 (144A) | 413250 |  | 372234 |
|  Wingstop Funding LLC<br>2.841%, 12/05/50 (144A) | 163350 |  | 138044 |
|  |  |  | 36066285 |
|  Total Asset-Backed Securities <br>(Cost $48,414,051) |  |  | 45270481 |
| **Foreign Government—1.4%** | **Foreign Government—1.4%** | **Foreign Government—1.4%** | **Foreign Government—1.4%** |
| **Sovereign—1.4%** |  |  |  |
|  Angolan Government International Bond<br>8.000%, 11/26/29 | 400000 |  | 350224 |
|  Benin Government International Bond<br>4.950%, 01/22/35 (144A) (EUR) | 620000 |  | 480112 |

---

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Foreign Government—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Sovereign—(Continued)** | | | |
|  Bermuda Government International Bond<br>2.375%, 08/20/30 (144A) (b) | 200000 | $| 168707 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/15/32 (144A) | 405000 |  | 402227 |
|  Brazil Notas do Tesouro Nacional<br>10.000%, 01/01/31 (BRL) | 11104000 |  | 1837959 |
|  Chile Government International Bond<br>1.250%, 01/22/51 (EUR) | 700000 |  | 402322 |
|  Colombia Government International Bonds<br>5.000%, 06/15/45 | 800000 |  | 544245 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.200%, 05/15/49 | 200000 |  | 136217 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 02/26/44 | 225000 |  | 165009 |
|  Egypt Government International Bonds<br>7.300%, 09/30/33 (144A) | 200000 |  | 141500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.903%, 02/21/48 | 270000 |  | 170132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.500%, 01/31/47 | 200000 |  | 132935 |
|  Finance Department Government of Sharjah<br>3.625%, 03/10/33 (144A) | 550000 |  | 455622 |
|  Hungary Government International Bond<br>1.625%, 04/28/32 (EUR) | 1320000 |  | 1011986 |
|  Indonesia Government International Bonds<br>1.100%, 03/12/33 (EUR) | 1170000 |  | 909432 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.150%, 07/18/24 (EUR) | 100000 |  | 104637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 06/14/23 (EUR) | 100000 |  | 106771 |
|  Ivory Coast Government International Bond<br>4.875%, 01/30/32 (EUR) | 460000 |  | 387613 |
|  Mexico Government International Bonds<br>1.125%, 01/17/30 (EUR) | 200000 |  | 173837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.450%, 10/25/33 (EUR) | 1330000 |  | 1009133 |
|  North Macedonia Government International Bonds<br>2.750%, 01/18/25 (EUR) | 425000 |  | 423219 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.675%, 06/03/26 (144A) (EUR) | 515000 |  | 506931 |
|  Panama Government International Bonds<br>3.870%, 07/23/60 | 1170000 |  | 753638 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 04/29/53 | 200000 |  | 144361 |
|  Philippine Government International Bonds<br>1.200%, 04/28/33 (EUR) | 1010000 |  | 829643 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 04/28/41 (EUR) | 300000 |  | 218404 |
|  Romanian Government International Bonds<br>2.625%, 12/02/40 (144A) (EUR) | 635000 |  | 378286 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 04/14/41 (EUR) | 1045000 |  | 625875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 02/08/38 (EUR) | 310000 |  | 223652 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 04/03/49 (EUR) | 738000 |  | 569923 |
|  Saudi Government International Bond<br>2.000%, 07/09/39 (EUR) | 650000 |  | 515025 |
|  Senegal Government International Bonds<br>4.750%, 03/13/28 (EUR) | 245000 |  | 225701 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 05/23/33 | 485000 |  | 399640 |
|  Total Foreign Government <br>(Cost $21,657,433) |  |  | 14904918 |
| **Municipals—0.6%** | **Municipals—0.6%** | **Municipals—0.6%** | **Municipals—0.6%** |
|  Chicago Board of Education, General Obligation Unlimited, Build America Bonds<br>6.038%, 12/01/29 | 85000 |  | 79682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.138%, 12/01/39 | 325000 |  | 277781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.319%, 11/01/29 | 480000 |  | 450871 |
|  Chicago Transit Authority Sale Tax Receipts Fund<br>3.912%, 12/01/40 | 170000 |  | 142169 |
|  Metropolitan Transportation Authority<br>4.750%, 11/15/45 | 505000 |  | 472218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.175%, 11/15/49 | 1390000 |  | 1199572 |
|  Municipal Electric Authority of Georgia, Build America Bond<br>6.637%, 04/01/57 | 191000 |  | 204321 |
|  New York Transportation Development Corp<br>4.248%, 09/01/35 | 1150000 |  | 1105227 |
|  Philadelphia, Authority for Industrial Development<br>6.550%, 10/15/28 | 1235000 |  | 1290918 |
|  State Board of Administration Finance Corp.<br>1.258%, 07/01/25 | 975000 |  | 895199 |
|  State of California General Obligation Unlimited, Build America Bond<br>7.300%, 10/01/39 | 180000 |  | 218677 |
|  State of Illinois<br>4.950%, 06/01/23 | 242727 |  | 242854 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/23 | 70000 |  | 70000 |
|  Total Municipals <br>(Cost $7,523,499) |  |  | 6649489 |
| **Floating Rate Loans (n)—0.0%** | **Floating Rate Loans (n)—0.0%** | **Floating Rate Loans (n)—0.0%** | **Floating Rate Loans (n)—0.0%** |
| **Entertainment—0.0%** |  |  |  |
|  Crown Finance U.S., Inc.<br>2022 DIP Term Loan, 14.407%, 3M TSFR + 10.000%, 09/07/23 | 39549 |  | 38996 |
| &nbsp;&nbsp;&nbsp;&nbsp; USD Term Loan, 4.000%, 3M LIBOR + 2.500%, 02/28/25 | 79970 |  | 15144 |
|  |  |  | 54140 |
| **Healthcare-Services—0.0%** |  |  |  |
|  Envision Healthcare Corp. | Envision Healthcare Corp. | Envision Healthcare Corp. | Envision Healthcare Corp. |
| &nbsp;&nbsp;&nbsp;&nbsp; Second Out Term Loan, 8.830%, 3M TSFR + 4.250%, 03/31/27 | 139 |  | 45 |
| **Oil & Gas—0.0%** |  |  |  |
|  Paragon Offshore Finance Co. | Paragon Offshore Finance Co. | Paragon Offshore Finance Co. | Paragon Offshore Finance Co. |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B, 07/18/22 (k) (l) (q) | 587 |  | 0 |
|  Total Floating Rate Loans <br>(Cost $107,552) |  |  | 54185 |
| **Short-Term Investment—2.1%** | **Short-Term Investment—2.1%** | **Short-Term Investment—2.1%** | **Short-Term Investment—2.1%** |
| **Repurchase Agreement—2.1%** |  |  |  |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $23,055,210; collateralized by U.S. Treasury Bonds with rates ranging from 1.375% - 2.375%, maturity dates ranging from 08/15/50 - 05/15/51, and an aggregate market value of $23,511,635. | 23050600 |  | 23050600 |
|  Total Short-Term Investments <br>(Cost $23,050,600) |  |  | 23050600 |

---

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (o)—6.1%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Certificates of Deposit—0.8%** | | |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (c) | 1000000 | $1001351 |
|  Bank of Nova Scotia<br>4.810%, SOFR + 0.510%, 03/15/23 (c) | 1000000 | 1000420 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (c) | 1000000 | 1000071 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (c) | 2000000 | 2000600 |
|  Natixis S.A. (New York)<br>4.800%, SOFR + 0.500%, 02/13/23 (c) | 2000000 | 2000789 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (c) | 1000000 | 1000110 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (c) | 1000000 | 1000328 |
|  |  | 9003669 |
| **Commercial Paper—0.3%** |  |  |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (c) | 2000000 | 2000540 |
|  UBS AG<br>4.870%, SOFR + 0.570%, 03/23/23 (c) | 1000000 | 1000000 |
|  |  | 3000540 |
| **Repurchase Agreements—3.2%** |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $14,558,008; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $14,842,242. | 14551218 | 14551218 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $1,025,026; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $1,020,000. | 1000000 | 1000000 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $4,001,889; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $4,081,927. | 4000000 | 4000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $5,002,400; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $5,119,346. | 5000000 | 5000000 |
| **Repurchase Agreements—(Continued)** |  |  |
|  National Bank of Canada | National Bank of Canada | National Bank of Canada |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $1,701,428; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $1,738,043. | 1700000 | 1700000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $2,702,336; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $2,939,837. | 2700000 | 2700000 |
|  Societe Generale | Societe Generale | Societe Generale |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $400,189; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $408,723. | 400000 | 400000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $900,439; collateralized by various Common Stock with an aggregate market value of $1,001,562. | 900000 | 900000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $2,101,029; collateralized by various Common Stock with an aggregate market value of $2,337,220. | 2100000 | 2100000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $900,774; collateralized by various Common Stock with an aggregate market value of $1,001,873. | 900000 | 900000 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $2,000,978; collateralized by various Common Stock with an aggregate market value of $2,218,856. | 2000000 | 2000000 |
|  |  | 35251218 |
| **Mutual Funds—1.8%** |  |  |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (p) | 5000000 | 5000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (p) | 1000000 | 1000000 |
|  HSBC U.S. Government Money Market Fund, Class I <br>4.130% (p) | 1000000 | 1000000 |
|  Morgan Stanley Liquidity Funds Government Portfolio, Institutional Shares 4.110% (p) | 5000000 | 5000000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (p) | 2000000 | 2000000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (o)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Mutual Funds—(Continued)** | | |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (p) | 5000000 | $5000000 |
|  |  | 19000000 |
|  Total Securities Lending Reinvestments <br>(Cost $66,251,218) |  | 66255427 |
|  Total Investments—113.9% <br>(Cost $1,269,206,800) |  | 1238574648 |
|  Other assets and liabilities (net)—(13.9)% |  | (150997779) |
| **Net Assets—100.0%** |  | $1087576869 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $74,809,475 and the collateral received consisted of cash in the amount of $66,251,218 and non-cash collateral with a value of $10,947,052. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government and agency securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(d) Interest only security.

(e) Principal only security.

(f) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.

(g) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2022, the market value of securities pledged was $2,723,038.

(h) All or a portion of the security was pledged as collateral against open OTC swap contracts and forward foreign currency exchange contracts. As of December 31, 2022, the market value of securities pledged was $77,763.

(i) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $599,077.

(j) Principal amount of security is adjusted for inflation.

(k) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent less than 0.05% of net assets.

(l) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(m) Security is a "step-up" bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.

(n) Floating rate loans ("Senior Loans") often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will generally have an expected average life of approximately two to four years. Senior Loans typically have rates of interest which are determined periodically by reference to a base lending rate, plus a spread. These base rates are primarily the London Interbank Offered Rate and secondarily, the prime rate offered by one or more major United States banks. Base lending rates may be subject to a floor, or a minimum rate.

(o) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(p) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(q) Non-income producing; security is in default and/or issuer is in bankruptcy.

(144A) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $126,459,689, which is 11.6% of net assets.

**TBA Forward Sale Commitments** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Interest Rate** | **Maturity** | **Face<br>Amount** | **Cost** | **Value** |
|  Ginnie Mae II 30 Yr. Pool | 3.000% | TBA | $(3490000) | $(3161878) | $(3106734) |
|  Uniform Mortgage-Backed Securities 15 Yr. Pool | 4.500% | TBA | (98000) | (97701) | (97331) |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | 3.000% | TBA | (1629000) | (1467582) | (1429235) |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | 4.000% | TBA | (5576000) | (5332348) | (5228392) |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | 6.000% | TBA | (265000) | (270085) | (268910) |
|  Totals | Totals | Totals | Totals | $(10329594) | $(10130602) |

---

**Forward Foreign Currency Exchange Contracts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contracts to Deliver** | **Contracts to Deliver** | **Counterparty** | **Settlement<br>Date** | **In Exchange**<br>**for** | **In Exchange**<br>**for** | **Unrealized**<br>**Depreciation** |
| BRL | 9480000 | GSI | 03/15/23 | USD | 1749400 | $(22681) |
| EUR | 9105000 | BBP | 03/15/23 | USD | 9634329 | (158861) |
| Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | $(181542) |

---

*See accompanying notes to financial statements.* 

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Value** | **Notional<br>Value** | **Value/**<br>**Unrealized**<br>**Appreciation/**<br>**(Depreciation)** |
|  Australian 10 Year Treasury Bond Futures | 03/15/23 | 75 | AUD | 8676109 | $(329014) |
|  S&P 500 Index E-Mini Futures | 03/17/23 | 41 | USD | 7915050 | (180951) |
|  U.S. Treasury Note 5 Year Futures | 03/31/23 | 47 | USD | 5072695 | (28273) |
| **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** |
|  Euro-Bund Futures | 03/08/23 | (35) | EUR | (4652550) | 310429 |
|  Euro-Buxl 30 Year Bond Futures | 03/08/23 | (17) | EUR | (2299080) | 491146 |
|  Euro-Schatz Futures | 03/08/23 | (118) | EUR | (12439560) | 138661 |
|  U.S. Treasury Long Bond Futures | 03/22/23 | (14) | USD | (1754813) | 58037 |
|  U.S. Treasury Note 10 Year Futures | 03/22/23 | (281) | USD | (31555422) | 129850 |
|  U.S. Treasury Note 2 Year Futures | 03/31/23 | (44) | USD | (9023438) | 32232 |
|  U.S. Treasury Note Ultra 10 Year Futures | 03/22/23 | (94) | USD | (11118438) | 61354 |
|  U.S. Treasury Ultra Long Bond Futures | 03/22/23 | (29) | USD | (3895063) | 32800 |
|  Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | $716271 |

---

**Swap Agreements** 

**Centrally Cleared Credit Default Swaps on Sovereign Issues and Credit Indices—Buy Protection (a)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal**<br>**(Pay) Rate** | **Payment**<br>**Frequency** | **Maturity**<br>**Date** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional**<br>**Amount <sup>(c)</sup>** | **Notional**<br>**Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront**<br>**Premiums**<br>**Paid/(Received)** | **Unrealized**<br>**Appreciation/**<br>**(Depreciation)** |
|  Brazilian Government International Bond 4.250%, due 01/07/25 | (1.000%) | Quarterly | 06/20/27 | 4.642% | USD | 1491000 | $76051 | $74583 | $1468 |
|  CDX.EM.38.V1 | (1.000%) | Quarterly | 12/20/27 | 4.772% | USD | 3440000 | 201261 | 278357 | (77096) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $277312 | $352940 | $(75628) |

---

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal**<br>**(Pay) Rate** | **Payment**<br>**Frequency** | **Maturity**<br>**Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional**<br>**Amount <sup>(c)</sup>** | **Notional**<br>**Amount <sup>(c)</sup>** | **Market**<br>**Value** | **Upfront**<br>**Premium**<br>**Paid/(Received)** | **Unrealized**<br>**Appreciation/**<br>**(Depreciation)** |
|  ABX.HE.PEN.AAA.06-2 | (0.110%) | Monthly | 05/25/46 | JPMC | 170.291% | USD | 61391 | $4502 | $7808 | $(3306) |
|  PRIMEX.ARM.2 (e) | (4.580%) | Monthly | 12/25/37 | MSIP | 0.000% | USD | 116781 |  | (235) | 235 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $4502 | $7573 | $(3071) |

---

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

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal**<br>**Receive<br>Rate** | **Payment**<br>**Frequency** | **Maturity**<br>**Date** | **Counterparty** | **Implied<br>Credit Spread<br>at December 31,<br>2022 <sup>(b)</sup>** | **Notional**<br>**Amount <sup>(c)</sup>** | **Notional**<br>**Amount <sup>(c)</sup>** | **Market**<br>**Value** | **Upfront**<br>**Premium**<br>**Paid/(Received)** | **Unrealized**<br>**Appreciation/**<br>**(Depreciation)** |
|  ABX.HE.PEN.AAA.06-2 | 0.110% | Monthly | 05/25/46 | BBP | 170.291% | USD | 61391 | $(4502) | $(1532) | $(2970) |
|  PRIMEX.ARM.2 (e) | 4.580% | Monthly | 12/25/37 | JPMC | 0.000% | USD | 116781 |  | 3257 | (3257) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(4502) | $1725 | $(6227) |

---

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal
to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap
less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

*See accompanying notes to financial statements.* 

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront
payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under
the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity or obligation.

(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would
be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt
obligation.

(d) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the
notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap
less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(e) Significant unobservable inputs were used in the valuation of this position; i.e. Level 3.

**Glossary of Abbreviations** 

Counterparties

------

---

| | |
|:---|:---|
| (BBP)— | Barclays Bank plc |
| (GSI)— | Goldman Sachs International |
| (JPMC)— | JPMorgan Chase Bank N.A. |
| (MSIP)— | Morgan Stanley & Co. International plc |

---

Currencies

------

---

| | |
|:---|:---|
| (AUD)— | Australian Dollar |
| (BRL)— | Brazilian Real |
| (EUR)— | Euro |
| (USD)— | United States Dollar |

---

Index Abbreviations

------

---

| | |
|:---|:---|
| (ABX.HE.PEN.AAA)— | Markit Asset-Backed Home Equity Penultimate AAA Rated Index |
| (CDX.EM)— | Markit Emerging Market CDS Index |
| (H15)— | U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index |
| (LIBOR)— | London Interbank Offered Rate |
| (MTA)— | Monthly Treasury Average Index |
| (PRIMEX.ARM)— | Markit PrimeX Adjustable Rate Mortgage Index |
| (SOFR)— | Secured Overnight Financing Rate |
| (SOFR30A)— | Secured Overnight Financing Rate 30-Day Average |
| (TSFR)— | Term Secured Financing Rate |

---

Other Abbreviations

------

---

| | |
|:---|:---|
| (ARM)— | Adjustable-Rate Mortgage |
| (ACES)— | Alternative Credit Enhancement Securities |
| (ADR)— | American Depositary Receipt |
| (CDO)— | Collateralized Debt Obligation |
| (CLO)— | Collateralized Loan Obligation |
| (CMO)— | Collateralized Mortgage Obligation |
| (REMIC)— | Real Estate Mortgage Investment Conduit |

---

*See accompanying notes to financial statements.* 

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $635056720 | $— | $— | $635056720 |
|  Total U.S. Treasury & Government Agencies\* |  | 275904410 |  | 275904410 |
| Corporate Bonds & Notes |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace/Defense |  | 1755203 |  | 1755203 |
| &nbsp;&nbsp;&nbsp;&nbsp; Agriculture |  | 1645457 |  | 1645457 |
| &nbsp;&nbsp;&nbsp;&nbsp; Apparel |  | 858903 |  | 858903 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Manufacturers |  | 180936 |  | 180936 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks |  | 25482665 | 0 | 25482665 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages |  | 963483 |  | 963483 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology |  | 1438605 |  | 1438605 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Materials |  | 1376381 |  | 1376381 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals |  | 389599 |  | 389599 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services |  | 3622535 |  | 3622535 |
| &nbsp;&nbsp;&nbsp;&nbsp; Computers |  | 1169471 |  | 1169471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cosmetics/Personal Care |  | 440626 |  | 440626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Financial Services |  | 2384385 |  | 2384385 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electric |  | 10767370 |  | 10767370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy-Alternate Sources |  | 835273 |  | 835273 |
| &nbsp;&nbsp;&nbsp;&nbsp; Engineering & Construction |  | 1218567 |  | 1218567 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  | 1792452 |  | 1792452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Environmental Control |  | 1132262 |  | 1132262 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food |  | 992683 |  | 992683 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gas |  | 480447 |  | 480447 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Products |  | 3385164 |  | 3385164 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Services |  | 4009697 |  | 4009697 |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Builders |  | 1399414 |  | 1399414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance |  | 3092669 |  | 3092669 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet |  | 2327363 |  | 2327363 |
| &nbsp;&nbsp;&nbsp;&nbsp; Iron/Steel |  | 545485 |  | 545485 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery-Diversified |  | 382291 |  | 382291 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media |  | 5265524 |  | 5265524 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mining |  | 704729 |  | 704729 |
| &nbsp;&nbsp;&nbsp;&nbsp; Office/Business Equipment |  | 1397843 |  | 1397843 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil & Gas |  | 4956942 |  | 4956942 |
| &nbsp;&nbsp;&nbsp;&nbsp; Packaging & Containers |  | 1176143 |  | 1176143 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals |  | 242892 |  | 242892 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pipelines |  | 3794029 |  | 3794029 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Investment Trusts |  | 2746616 |  | 2746616 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retail |  | 3244734 |  | 3244734 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors |  | 3050380 |  | 3050380 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software |  | 5276423 |  | 5276423 |

---

*See accompanying notes to financial statements.* 

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Telecommunications | $— | $2920570 | $— | $2920570 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tobacco |  | 676364 |  | 676364 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trucking & Leasing |  | 1871000 |  | 1871000 |
|  Total Corporate Bonds & Notes |  | 111393575 | 0 | 111393575 |
|  Total Mortgage-Backed Securities\* |  | 60034843 |  | 60034843 |
|  Total Asset-Backed Securities\* |  | 45270481 |  | 45270481 |
|  Total Foreign Government\* |  | 14904918 |  | 14904918 |
|  Total Municipals\* |  | 6649489 |  | 6649489 |
| Floating Rate Loans |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  | 54140 |  | 54140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Services |  | 45 |  | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil & Gas |  |  | 0 | 0 |
|  Total Floating Rate Loans |  | 54185 | 0 | 54185 |
|  Total Short-Term Investment\* |  | 23050600 |  | 23050600 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 9003669 |  | 9003669 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 3000540 |  | 3000540 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 35251218 |  | 35251218 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 19000000 |  |  | 19000000 |
|  Total Securities Lending Reinvestments | 19000000 | 47255427 |  | 66255427 |
|  Total Investments | $654056720 | $584517928 | $0 | $1238574648 |
|  Collateral for Securities Loaned (Liability) | $— | $(66251218) | $— | $(66251218) |
|  TBA Forward Sales Commitments | $— | $(10130602) | $— | $(10130602) |
| Forward Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Exchange Contracts (Unrealized Depreciation) | $— | $(181542) | $— | $(181542) |
| Futures Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Appreciation) | $1254509 | $— | $— | $1254509 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | (538238) |  |  | (538238) |
|  Total Futures Contracts | $716271 | $— | $— | $716271 |
| Centrally Cleared Swap Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Swap Contracts (Unrealized Appreciation) | $— | $1468 | $— | $1468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Swap Contracts (Unrealized Depreciation) |  | (77096) |  | (77096) |
|  Total Centrally Cleared Swap Contracts | $— | $(75628) | $— | $(75628) |
| OTC Swap Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC Swap Contracts at Value (Assets) | $— | $4502 | $0 | $4502 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC Swap Contracts at Value (Liabilities) |  | (4502) | 0 | (4502) |
|  Total OTC Swap Contracts | $— | $0 | $0 | $0 |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

*See accompanying notes to financial statements.* 

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1238574648 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (c) | 50418 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts at market value (d) | 4502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 774317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities sold (e) | 38280719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 139481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal paydowns | 137164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 3934020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on OTC swap contracts | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 585181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 488 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 4422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1282485466 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; TBA Forward sales commitments, at value | 10130602 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts at market value (f) | 4502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on forward foreign currency exchange contracts | 181542 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 66251218 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 1889211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities purchased (e) | 115229529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 293493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on OTC swap contracts | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 415062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 13091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 153620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 346624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 194908597 |
|  **Net Assets** | $1087576869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1099432070 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (11855201) |
|  **Net Assets** | $1087576869 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1018767660 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 46619088 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 22190121 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 64899558 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 2998030 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1418338 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $15.70 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 15.55 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 15.65 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $1,269,206,800.

(b) Includes securities loaned at value of $74,809,475.

(c) Identified cost of cash denominated in foreign currencies was $50,046.

(d) Net premium paid on OTC swap contracts was $10,830.

(e) Included within TBA securities sold is $22,906,068 related to TBA forward sale commitments and included within TBA securities purchased is $12,564,409 related to TBA forward sale commitments.

(f) Net premium received on OTC swap contracts was $1,532.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $9533433 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 16330178 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 112455 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 25976066 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 5568977 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 68039 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 333016 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 135814 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 37454 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 105863 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 85754 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 10025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 18228 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 6417825 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (344422) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (6078) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 6067325 |
|  **Net Investment Income** | 19908741 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (11375632) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased options | (429405) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 13413842 |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options | 3112093 |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (2794527) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (51066) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency transactions | 1201456 |
|  Net realized gain (loss) | 3076761 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (265371862) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased options | 449494 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 1118895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options | (139461) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 48717 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | 28582 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency transactions | (27620) |
|  Net change in unrealized appreciation (depreciation) | (263893255) |
|  Net realized and unrealized gain (loss) | (260816494) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(240907753) |

---

(a) Net of foreign withholding taxes of $17,506.

*See accompanying notes to financial statements.* 

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**December 31,<br>2022** | **Year Ended**<br>**December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $19908741 | $17008057 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 3076761 | 167105159 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (263893255) | 1470687 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (240907753) | 185583903 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (170597556) | (137177586) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (8145507) | (7007468) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (3761228) | (3169014) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (182504291) | (147354068) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 68943431 | 25952317 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (354468613) | 64182152 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1442045482 | 1377863330 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $1087576869 | $1442045482 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended**<br>**December 31, 2022** | **Year Ended**<br>**December 31, 2022** | **Year Ended**<br>**December 31, 2021** | **Year Ended**<br>**December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 618714 | $11293388 | 1084990 | $24614036 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 10985033 | 170597556 | 6489006 | 137177586 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (6264482) | (112205209) | (5974200) | (133543967) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 5339265 | $69685735 | 1599796 | $28247655 |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 244529 | $4103463 | 184986 | $4135002 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 528586 | 8145507 | 334007 | 7007468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (788172) | (13793307) | (578593) | (12827487) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (15057) | $(1544337) | (59600) | $(1685017) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 23311 | $406499 | 20590 | $459707 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 242817 | 3761228 | 150333 | 3169014 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (189557) | (3365694) | (190913) | (4239042) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 76571 | $802033 | (19990) | $(610321) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $68943431 |  | $25952317 |

---

*See accompanying notes to financial statements.* 

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $22.57 | $22.09 | $20.12 | $17.82 | $20.38 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.30 | 0.27 | 0.31 | 0.36 | 0.37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (4.19) | 2.66 | 3.02 | 3.58 | (1.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.89) | 2.93 | 3.33 | 3.94 | (0.65) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.34) | (0.43) | (0.46) | (0.44) | (0.36) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.64) | (2.02) | (0.90) | (1.20) | (1.55) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.98) | (2.45) | (1.36) | (1.64) | (1.91) |
|  **Net Asset Value, End of Period** | $15.70 | $22.57 | $22.09 | $20.12 | $17.82 |
|  **Total Return (%)** (b) | (17.08) | 14.02 | 17.72 | 22.99 | (3.76) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.52 | 0.51 | 0.53 | 0.53 | 0.53 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.49 | 0.48 | 0.50 | 0.50 | 0.50 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.67 | 1.21 | 1.57 | 1.88 | 1.89 |
|  Portfolio turnover rate (%) | 214 (e) | 250 (e) | 298 (e) | 322 (e) | 341 (e) |
|  Net assets, end of period (in millions) | $1018.8 | $1344.5 | $1280.5 | $1179.3 | $1050.5 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $22.37 | $21.92 | $19.97 | $17.69 | $20.24 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.25 | 0.21 | 0.26 | 0.31 | 0.32 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (4.15) | 2.64 | 3.00 | 3.56 | (1.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.90) | 2.85 | 3.26 | 3.87 | (0.69) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.28) | (0.38) | (0.41) | (0.39) | (0.31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.64) | (2.02) | (0.90) | (1.20) | (1.55) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.92) | (2.40) | (1.31) | (1.59) | (1.86) |
|  **Net Asset Value, End of Period** | $15.55 | $22.37 | $21.92 | $19.97 | $17.69 |
|  **Total Return (%)** (b) | (17.31) | 13.73 | 17.45 | 22.72 | (4.01) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.77 | 0.76 | 0.78 | 0.78 | 0.78 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.74 | 0.73 | 0.75 | 0.75 | 0.75 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.41 | 0.96 | 1.32 | 1.63 | 1.64 |
|  Portfolio turnover rate (%) | 214 (e) | 250 (e) | 298 (e) | 322 (e) | 341 (e) |
|  Net assets, end of period (in millions) | $46.6 | $67.4 | $67.3 | $63.9 | $57.2 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $22.50 | $22.03 | $20.07 | $17.77 | $20.33 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.27 | 0.24 | 0.28 | 0.33 | 0.34 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (4.18) | 2.65 | 3.01 | 3.58 | (1.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.91) | 2.89 | 3.29 | 3.91 | (0.68) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.30) | (0.40) | (0.43) | (0.41) | (0.33) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.64) | (2.02) | (0.90) | (1.20) | (1.55) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.94) | (2.42) | (1.33) | (1.61) | (1.88) |
|  **Net Asset Value, End of Period** | $15.65 | $22.50 | $22.03 | $20.07 | $17.77 |
|  **Total Return (%)** (b) | (17.26) | 13.86 | 17.53 | 22.85 | (3.88) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.67 | 0.66 | 0.68 | 0.68 | 0.68 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.64 | 0.63 | 0.65 | 0.65 | 0.65 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.52 | 1.06 | 1.42 | 1.73 | 1.74 |
|  Portfolio turnover rate (%) | 214 (e) | 250 (e) | 298 (e) | 322 (e) | 341 (e) |
|  Net assets, end of period (in millions) | $22.2 | $30.2 | $30 | $29 | $27.5 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

(d) The effect of the voluntary portion of the waivers on the net ratio of expenses to average net assets was 0.03% for each of the years ended December 31, 2022 through 2018. (see Note 6 of the Notes to Financial
Statements).

(e) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 57%, 62%, 77%, 60%, and 62% for the years ended December 31, 2022, 2021, 2020, 2019, and
2018, respectively.

*See accompanying notes to financial statements.* 

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

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

**BHFTII-33** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

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

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

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

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees"). A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses

**BHFTII-34** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

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

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

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

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

**Unfunded Loan Commitments -** The Portfolio may enter into certain credit agreements, all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower's discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of December 31, 2022, the Portfolio did not have any unfunded loan commitments.

**Inflation-Indexed Bonds -** The Portfolio may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. The interest rate on these bonds is generally fixed at

**BHFTII-35** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value that is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities ("TIPS"). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

**Collateralized Obligations -** The Portfolio may invest in collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs"), other collateralized debt obligations ("CDOs"), and other similarly structured securities. CDOs, CBOs and CLOs are types of asset-backed securities. A CBO is a trust that is backed by a diversified pool of high risk, below investment grade fixed-income securities. The collateral can be from many types of fixed-income securities such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans that may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties.

For CDOs, CBOs and CLOs, the cash flow from the trust is split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is typically the "equity" or "first loss" tranche, which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches and equity tranches. Losses are first borne by the equity tranches, next by the junior tranches, and finally by the senior tranches. The risks of an investment in a CBO, CLO or other CDO depend largely on the quality and type of the collateral securities and the class of the instrument in which a Portfolio invests. If some debt instruments go into default and the cash collected by the CBO, CLO or CDO is insufficient to pay all of its investors, those in the lowest, most junior tranches suffer losses first. Since they are partially protected from defaults, senior tranches typically have higher ratings and lower potential yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, more senior tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO securities as a class.

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

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

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

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

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

**BHFTII-36** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $23,050,600. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $35,251,218. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

**BHFTII-37** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements**<br>**As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements**<br>**As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements**<br>**As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements**<br>**As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements**<br>**As of December 31, 2022** |
| | **Overnight and**<br> **Continuous** | **Up to**<br> **30 Days** | **31 - 90**<br> **Days** | **Greater than**<br> **90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(46231811) | $— | $— | $— | $(46231811) |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes | (3709066) |  |  |  | (3709066) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Government | (173428) |  |  |  | (173428) |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury & Government Agencies | (16136913) |  |  |  | (16136913) |
|  **Total Borrowings** | $**(66251218)** | $**—** | $**—** | $**—** | $**(66251218)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(66251218) |

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

**3. Investments in Derivative Instruments** 

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

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

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

**BHFTII-38** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

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

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

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

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

**Swap Agreements -** The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are either privately negotiated in the OTC market ("OTC swaps") or executed in a multilateral or other trade facility platform, such as a registered commodities exchange ("centrally cleared swaps"). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

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

**BHFTII-39** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may be worthless when it expires and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event involving an entity in the index, the credit event is settled based on that entity's weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less

**BHFTII-40** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

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

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2022, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

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

*Total Return Swaps*: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed or floating rate or the total return from other underlying assets. When the Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when the Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

**BHFTII-41** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets &**<br> **Liabilities Location** | **Fair Value** | **Statement of Assets &**<br> **Liabilities Location** | **Fair Value** |
|  Interest Rate | Unrealized appreciation on futures contracts (a) (b) | $1254509 | Unrealized depreciation on futures contracts (a) (b) | $357287 |
|  Credit | OTC swap contracts at market value (c) | 4502 | OTC swap contracts at market value (c) | 4502 |
|  | Unrealized appreciation on centrally cleared swap contracts (a) (d) | 1468 | Unrealized depreciation on centrally cleared swap contracts (a) (d) | 77096 |
|  Equity |  |  | Unrealized depreciation on futures contracts (a) (b) | 180951 |
|  Foreign Exchange |  |  | Unrealized depreciation on forward foreign currency exchange contracts | 181542 |
|  Total |  | $1260479 |  | $801378 |

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(a) Financial instrument not subject to a master netting agreement.

(b) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

(c) Excludes OTC swap interest receivable of $106 and OTC swap interest payable of $103.

(d) Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.

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

The following table presents the Portfolio's derivative assets by counterparty net of amounts available for offset under a master netting agreement ("MNA") (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2022.

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| | | | |
|:---|:---|:---|:---|
| **Counterparty** | **Derivative Assets**<br>**subject to an MNA**<br>**by Counterparty** | **Financial<br>Instruments**<br>**available for offset** | **Net<br>Amount\*** |
|  JPMorgan Chase Bank N.A. | $4502 | $– $– $| 4502 |

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The following table presents the Portfolio's derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2022.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative Liabilities**<br>**subject to an MNA**<br>**by Counterparty** | **Financial<br>Instruments**<br>**available for offset** | **Collateral**<br>**Pledged†** | **Net<br>Amount\*\*** |
|  Barclays Bank plc | $163363 | $– $| (9004) | $154359 |
|  Goldman Sachs International | 22681 | – | (22681) |  |
|  | $186044 | $– $| (31685) | $154359 |

---

---

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

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The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Statement of Operations Location—Net<br>Realized Gain (Loss)** | **Interest Rate** | **Credit** | **Equity** | **Foreign<br>Exchange** | **Total** |
|  Purchased options | $(429405) | $— | $— | $— | $(429405) |
|  Forward foreign currency transactions |  |  |  | 1201456 | 1201456 |
|  Futures contracts | 13359459 |  | 54383 |  | 13413842 |
|  Swap contracts | 11949 | (2806476) |  |  | (2794527) |
|  Written options | (83725) | 3195818 |  |  | 3112093 |
|  | $12858278 | $389342 | $54383 | $1201456 | $14503459 |

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**BHFTII-42** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Statement of Operations Location—Net<br>Change in Unrealized Appreciation (Depreciation)** | **Interest Rate** | **Credit** | **Equity** | **Foreign<br>Exchange** | **Total** |
|  Purchased options | $449494 | $— | $— | $— | $449494 |
|  Forward foreign currency transactions |  |  |  | (27620) | (27620) |
|  Futures contracts | 1299846 |  | (180951) |  | 1118895 |
|  Swap contracts |  | 48717 |  |  | 48717 |
|  Written options | (139461) |  |  |  | (139461) |
|  | $1609879 | $48717 | $(180951) | $(27620) | $1450025 |

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For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

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| | |
|:---|:---|
| **Derivative Description** | **Average**<br>**Notional Par or**<br>**Face Amount‡** |
|  Forward foreign currency transactions | $20202274 |
|  Futures contracts long | 68552349 |
|  Futures contracts short | (108851260) |
|  Swap contracts | 6764786 |
|  Written options | (118948182) |

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

**4. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The

**BHFTII-43** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

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

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time

**BHFTII-44** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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

*LIBOR Replacement Risk:* Many financial instruments use or may use a floating rate based on LIBOR, which is the offered rate at which major international banks can obtain wholesale, unsecured funding. LIBOR may be a significant factor in determining the Portfolio's payment obligations under a derivative investment, the cost of financing to the Portfolio or an investment's value or return to the Portfolio, and may be used in other ways that affect the Portfolio's investment performance. In 2017, the UK Financial Conduct Authority (FCA) announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Index Average for GBP LIBOR). Various financial industry groups have been planning for the transition away from LIBOR and markets are developing in response to these new rates, but there are concerns around liquidity of the new rates and obstacles to converting certain securities and transactions to new rates. Neither the effect of the transition process nor its ultimate success can yet be known. The transition away from and eventual elimination of LIBOR may adversely affect the interest rates on amounts of any payments paid or received with respect to, and liquidity and value of, certain assets and liabilities of the Portfolio that are tied to LIBOR. These may include bank loans, floating rate securities, structured securities (including asset-backed and mortgage-backed securities), other debt securities, derivatives, and financing transactions tied to LIBOR, particularly insofar as the documentation governing such instruments does not include "fall back" provisions addressing the transition from LIBOR. The effect of any changes to, or discontinuation of, LIBOR on the Portfolio will vary depending on, among other things (1) existing fallback or termination provisions in individual contracts and (2) the extent to which industry participants adopt new reference rates and fallbacks for both legacy and new products and instruments. The Subadviser may have discretion to determine a successor or substitute reference rate, including any price or other adjustments to account for differences between the successor or substitute reference rate and previous rate. Such successor or substitute reference rate and any adjustments selected may negatively impact the Portfolio's investments, performance or financial condition, and may expose the Portfolio to additional tax, accounting and regulatory risks. The transition away from LIBOR may affect the value, liquidity or return on certain Portfolio investments, reduce the effectiveness of related transactions such as hedges, and may result in costs incurred in connection with closing out positions and entering into new trades, adversely impacting the Portfolio's overall financial condition or results of operations. The transition process may involve, among other things, increased volatility in markets for instruments that continue to rely on LIBOR. It is difficult to predict the full impact of the transition away from LIBOR and the adoption of alternative reference rates on the Portfolio.

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

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $2281716483 | $498390193 | $2281313091 | $634096814 |

---

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2022 were as follows:

---

| | |
|:---|:---|
| **Purchases** | **Sales** |
| $2099296319 | $2131402913 |

---

**BHFTII-45** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The Portfolio engaged in security transactions with other accounts managed by Wellington Management Company LLP, the subadviser to the Portfolio, that amounted to $274,738 in purchases of investments which are included above and $111,479 in sales of investments, which are included above, and resulted in net realized loss of $104,833.

**6. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $5568977 | 0.500% | Of the first $500 million |
|  | 0.450% | Of the next $500 million |
|  | 0.400% | On amounts in excess of $1 billion |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Wellington Management Company LLP (the "Subadviser") is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waiver** - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | | |
|:---|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** | **Average Daily Net Assets** |
| 0.020% | On the first $| 500 million |

---

Any reductions in total advisory fees paid by the Portfolio due to these waivers may be reduced or eliminated by changes in the advisory fee structure at higher asset levels. Brighthouse Investment Advisers will receive advisory fees equal to 0.480% of the Portfolio's average daily net assets for amounts over $500 million but less than $750 million (0.030% over the contractual advisory fee rate) and 0.460% for amounts over $750 million but less than $1 billion (0.010% over the contractual advisory fee rate). As a result, the dollar amount of the waiver will be reduced as assets grow beyond $500 million up to $1 billion, but the advisory fee net of waivers will never exceed the contractual dollar amount that would otherwise be payable under the advisory fee. An identical agreement was in place for the period April 30, 2021 to April 29, 2022. There were no fees waived during the year ended December 31, 2022.

The Subadviser has voluntarily agreed to waive a portion of its subadvisory fees payable by the Adviser to the Subadviser for managing the Portfolio. In addition to the above advisory fee agreement, the Adviser has agreed to reduce its advisory fee reflecting a portion of the amount waived by the Subadviser for managing the Portfolio pursuant to the voluntary subadvisory fee waiver. $344,422 was waived in the aggregate for the year ended December 31, 2022 and is reflected in the total amount shown as a management fee waiver in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees** - The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of

**BHFTII-46** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**7. Contractual Obligations** 

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

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1282415790 |
|  Gross unrealized appreciation | 95451093 |
|  Gross unrealized (depreciation) | (139621253) |
|  Net unrealized appreciation (depreciation) | $(44170160) |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $62446712 | $54565035 | $120057579 | $92789033 | $182504291 | $147354068 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary**<br> **Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net**<br>**Unrealized**<br>**Appreciation**<br>**(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $23884381 | $8365261 | $(43951223) | $– $| (11701581) |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**9. Recent Accounting Pronouncement** 

In January 2021, the FASB issued Accounting Standards Update No. 2021-01 ("ASU 2021-01"), "Reference Rate Reform (Topic 848)". ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, as regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in

**BHFTII-47** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

this update are effective through December 31, 2022, for all entities. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management expects that the adoption of the guidance will not have a material impact on the Portfolio's financial statements.

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-48** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse/Wellington Balanced Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Wellington Balanced Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net asset for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Wellington Balanced Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-49** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-50** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-51** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-52** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-53** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Brighthouse/Wellington Balanced Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Wellington Management Company LLP regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-year period ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its blended benchmark, the S&P 500 Index (60%) & Bloomberg U.S. Aggregate Bond Index (40%), for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-54** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Balanced Portfolio** 

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

The Board also considered that the Portfolio's actual management fee and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Universe and the Sub-advised Expense Group at the Portfolio's current size.

**BHFTII-55** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Managed By Wellington Management Company LLP** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Brighthouse/Wellington Core Equity Opportunities Portfolio returned -5.08%, -5.31%, and -5.21%, respectively. The Portfolio's benchmark, the Russell 1000 Index¹, returned -19.13%.

**MARKET ENVIRONMENT / CONDITIONS** 

In the first quarter of 2022, U.S. equities registered their first quarterly loss since March 2020. Fears about the economic implications of Russia's large-scale military attack on Ukraine and the prospect of aggressive monetary policy tightening by the Federal Reserve (the "Fed") drove the S&P 500 Index into correction territory in February. In March, the Fed raised interest rates by 25 basis points ("bps"), lifted its 2022 core inflation forecast to 4.1%, and cut its 2022 Gross Domestic Product ("GDP") growth forecast to 2.8%.

In the second quarter of 2022, U.S. equities fell sharply during a volatile quarter. Rampant inflation and tighter financial conditions hurt risk sentiment and increased the probability of recession. Growth stocks significantly underperformed their value counterparts as surging Treasury yields and disappointing earnings results from some of the largest technology companies drove the Nasdaq Composite Index to its biggest quarterly loss since September 2001. The Fed responded to the larger-than-expected increase in prices by accelerating its pace of interest-rate hikes to 75 bps in June, following a 50 bps increase in May.

In the third quarter of 2022, U.S. equities fell as risk sentiment deteriorated on fears that aggressive interest-rate hikes and tighter financial conditions would constrict economic growth and drive the U.S. to recession. Stocks suffered steep losses in September after a larger-than-expected rise in core consumer prices showed that inflation continued to mount across broad areas of the economy. As expected, the Fed raised interest rates by 75 bps in September—the third-straight increase of this magnitude.

U.S. equities rallied in the fourth quarter. Greater optimism that the Fed would begin to scale back its aggressive pace of interest-rate hikes, along with outsized short covering and hedging, helped to fuel a sharp rebound in stocks in October and November before risk sentiment waned in December amid recession fears, macroeconomic headwinds, and downside earnings risks in the coming quarters. In December, the Fed raised interest rates by 50 bps, snapping a streak of four consecutive hikes of 75 bps. However, the Fed's Summary of Economic Projections in December indicated a more hawkish outlook compared to its September forecast.

Within the S&P 500 Index, 9 of the 11 sectors declined for the twelve months ended December 31, 2022. Communication Services (-39.9%) and Consumer Discretionary (-37.0%) were the worst performing sectors.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio outperformed its benchmark, the Russell 1000 Index (the "Index"), for the twelve-month period ended December 31, 2022. Stock selection drove relative outperformance. Strong selection in Industrials, Consumer Discretionary, and Information Technology ("IT") was partially offset by weak selection in Consumer Staples and Materials. Sector allocation, a result of the bottom-up stock selection process, also contributed to relative performance due to underweight allocations to Communication Services and IT and an overweight allocation to Consumer Staples. This was partially offset by a lack of exposure to Energy and Utilities.

The Portfolio's overweight exposure to Northrop Grumman (Industrials) and TJX Companies (Consumer Discretionary), as well as its lack of exposure to benchmark constituent Amazon.com (Consumer Discretionary) were among the top relative contributors during the period. Shares of U.S.-based aerospace and defense company Northrop Grumman rose on strength in the industry as the Russia-Ukraine conflict led to increased military spending. Like its peers, growth was moderating as the B-21 and F-35 programs have plateaued, and the government is shifting from unmanned aerospace platforms to space platforms which take time to develop. The company was maintained a positive outlook as it continued to benefit from defense spending related to the Russia-Ukraine conflict. Shares of TJX Companies rose over the period due to solid demand combined with good buying opportunities as traditional retailers continued to experience inventory challenges. Management remained focused on future profitability and their long-term goal to be a $60 billion revenue company. At the end of the period, the Portfolio continued to hold positions in Northrup Grumman and TJX Companies.

The Portfolio's overweight positions in Ecolab (Materials) and Baxter International (Health Care), as well as its lack of exposure to benchmark constituent Exxon Mobil (Energy) were among the top relative detractors during the period. Shares of U.S.-based chemical company Ecolab fell when growth stocks traded down after a strong run in 2021. The company grappled with inflation and the impact of supply chain disruptions. Logistics and labor costs have also been an issue. Baxter International underperformed in 2022 primarily because of continued inflationary pressures due to higher raw material costs, overhead costs, and difficulty securing critical components, specifically chips, due to chip shortages. At the end of the period, the Portfolio held positions in Ecolab and Baxter International.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Managed By Wellington Management Company LLP** 

**Portfolio Manager Commentary\*—(Continued)** 

At of the end of the period, the Portfolio was most overweight in the Industrials and Consumer Staples sectors and most underweight in the IT and Communication Services sectors.

**Donald J. Kilbride** 

**Peter Fisher** 

Portfolio Managers

*Wellington Management Company LLP* 

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

<sup>1</sup> The Russell 1000 Index is an unmanaged measure of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 90% of the investable U.S. equity market.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 INDEX**![LOGO](g400324g66o98.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Brighthouse/Wellington Core Equity Opportunities Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -5.08 | 11.45 | 12.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -5.31 | 11.17 | 12.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -5.21 | 11.28 | 12.61 |
| &nbsp;&nbsp;&nbsp;**Russell 1000 Index** | -19.13 | 9.13 | 12.38 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **TJX Cos., Inc. (The)** | **4.1** |
| **UnitedHealth Group, Inc.** | **4.0** |
| **Northrop Grumman Corp.** | **3.6** |
| **Honeywell International, Inc.** | **3.5** |
| **NIKE, Inc. - Class B** | **3.3** |
| **Stryker Corp.** | **3.2** |
| **Colgate-Palmolive Co.** | **3.2** |
| **McDonald's Corp.** | **3.0** |
| **PepsiCo, Inc.** | **2.9** |
| **Procter & Gamble Co. (The)** | **2.9** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Industrials** | **21.4** |
| **Health Care** | **18.6** |
| **Consumer Staples** | **15.3** |
| **Information Technology** | **14.3** |
| **Consumer Discretionary** | **12.2** |
| **Financials** | **8.5** |
| **Materials** | **4.9** |
| **Real Estate** | **2.7** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Brighthouse/Wellington Core Equity Opportunities Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.58% | $1000.00 | $1068.50 | $3.02 |
|  | Hypothetical\* | 0.58% | $1000.00 | $1022.28 | $2.96 |
|  Class B (a) | Actual | 0.83% | $1000.00 | $1067.10 | $4.32 |
|  | Hypothetical\* | 0.83% | $1000.00 | $1021.02 | $4.23 |
|  Class E (a) | Actual | 0.73% | $1000.00 | $1067.80 | $3.80 |
|  | Hypothetical\* | 0.73% | $1000.00 | $1021.53 | $3.72 |

---

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

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

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

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—97.9% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—10.5%** | **Aerospace & Defense—10.5%** | **Aerospace & Defense—10.5%** |
|  General Dynamics Corp. | 334154 | $82906949 |
|  Lockheed Martin Corp. | 109406 | 53224925 |
|  Northrop Grumman Corp. | 205885 | 112332915 |
|  Raytheon Technologies Corp. | 823626 | 83120336 |
|  |  | 331585125 |
| **Air Freight & Logistics—2.0%** |  |  |
|  United Parcel Service, Inc. - Class B | 355218 | 61751097 |
| **Banks—1.2%** |  |  |
|  PNC Financial Services Group, Inc. (The) | 240031 | 37910496 |
| **Beverages—7.3%** |  |  |
|  Coca-Cola Co. (The) | 1238718 | 78794852 |
|  Diageo plc | 1318023 | 58202957 |
|  PepsiCo, Inc. | 512215 | 92536762 |
|  |  | 229534571 |
| **Chemicals—4.9%** |  |  |
|  Ecolab, Inc. | 474171 | 69020331 |
|  Linde plc | 266507 | 86929253 |
|  |  | 155949584 |
| **Consumer Finance—1.9%** |  |  |
|  American Express Co. | 413848 | 61146042 |
| **Equity Real Estate Investment Trusts—2.7%** |  |  |
|  American Tower Corp. | 214665 | 45478927 |
|  Public Storage | 143376 | 40172521 |
|  |  | 85651448 |
| **Food & Staples Retailing—1.9%** |  |  |
|  Costco Wholesale Corp. | 131448 | 60006012 |
| **Health Care Equipment & Supplies—6.7%** |  |  |
|  Baxter International, Inc. | 996057 | 50769026 |
|  Medtronic plc | 760857 | 59133806 |
|  Stryker Corp. | 414888 | 101435967 |
|  |  | 211338799 |
| **Health Care Providers & Services—4.0%** |  |  |
|  UnitedHealth Group, Inc. | 237968 | 126165874 |
| **Hotels, Restaurants & Leisure—3.0%** |  |  |
|  McDonald's Corp. | 359717 | 94796221 |
| **Household Products—6.1%** |  |  |
|  Colgate-Palmolive Co. | 1278177 | 100707566 |
|  Procter & Gamble Co. (The) | 608170 | 92174245 |
|  |  | 192881811 |
| **Industrial Conglomerates—3.5%** |  |  |
|  Honeywell International, Inc. | 521725 | 111805668 |
| **Insurance—5.3%** |  |  |
|  Chubb, Ltd. | 365579 | 80646727 |
|  Marsh & McLennan Cos., Inc. | 528287 | 87420933 |
|  |  | 168067660 |
| **IT Services—9.4%** |  |  |
|  Accenture plc - Class A | 274853 | 73341774 |
|  Automatic Data Processing, Inc. | 248556 | 59370086 |
|  MasterCard, Inc. - Class A | 223883 | 77850836 |
|  Visa, Inc. - Class A | 413209 | 85848302 |
|  |  | 296410998 |
| **Life Sciences Tools & Services—2.4%** |  |  |
|  Danaher Corp. | 287362 | 76271622 |
| **Machinery—1.2%** |  |  |
|  Deere & Co. | 85049 | 36465609 |
| **Pharmaceuticals—5.5%** |  |  |
|  Johnson & Johnson | 496772 | 87754774 |
|  Merck & Co., Inc. | 471540 | 52317363 |
|  Pfizer, Inc. | 662816 | 33962692 |
|  |  | 174034829 |
| **Road & Rail—4.3%** |  |  |
|  Canadian National Railway Co. | 548367 | 65139844 |
|  Union Pacific Corp. | 343215 | 71069530 |
|  |  | 136209374 |
| **Semiconductors & Semiconductor Equipment—2.3%** | **Semiconductors & Semiconductor Equipment—2.3%** |  |
|  Texas Instruments, Inc. | 438379 | 72428978 |
| **Software—2.6%** |  |  |
|  Microsoft Corp. | 344804 | 82690895 |
| **Specialty Retail—5.9%** |  |  |
|  Home Depot, Inc. (The) | 189165 | 59749657 |
|  TJX Cos., Inc. (The) | 1607815 | 127982074 |
|  |  | 187731731 |
| **Textiles, Apparel & Luxury Goods—3.3%** |  |  |
|  NIKE, Inc. - Class B | 892409 | 104420777 |
|  Total Common Stocks <br>(Cost $2,273,723,912) |  | 3095255221 |
| **Escrow Shares—0.0%** |  |  |
| **Forest Products & Paper—0.0%** |  |  |
|  Sino-Forest Corp. (a) (b) (c) <br>(Cost $0) | 5844000 | 0 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investments—2.1%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Repurchase Agreement—0.8%** | | |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $24,666,316; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $25,154,659. | $24661384 | $24661384 |
| **U.S. Treasury—1.3%** |  |  |
|  U.S. Treasury Bills<br>3.523%, 01/10/23 (d) | 11265000 | 11257076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.643%, 01/12/23 (d) | 30470000 | 30443548 |
|  |  | 41700624 |
|  Total Short-Term Investments <br>(Cost $66,349,073) |  | 66362008 |
|  Total Investments—100.0% <br>(Cost $2,340,072,985) |  | 3161617229 |
|  Other assets and liabilities (net)—0.0% |  | (1173567) |
| **Net Assets—100.0%** |  | $3160443662 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent less than 0.05% of net assets.

(c) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(d) The rate shown represents current yield to maturity.

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $331585125 | $— | $— | $331585125 |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Freight & Logistics | 61751097 |  |  | 61751097 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks | 37910496 |  |  | 37910496 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages | 171331614 | 58202957 |  | 229534571 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 155949584 |  |  | 155949584 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Finance | 61146042 |  |  | 61146042 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Real Estate Investment Trusts | 85651448 |  |  | 85651448 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food & Staples Retailing | 60006012 |  |  | 60006012 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 211338799 |  |  | 211338799 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 126165874 |  |  | 126165874 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 94796221 |  |  | 94796221 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products | 192881811 |  |  | 192881811 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Conglomerates | 111805668 |  |  | 111805668 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 168067660 |  |  | 168067660 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 296410998 |  |  | 296410998 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 76271622 |  |  | 76271622 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 36465609 |  |  | 36465609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 174034829 |  |  | 174034829 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 136209374 |  |  | 136209374 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 72428978 |  |  | 72428978 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 82690895 |  |  | 82690895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 187731731 |  |  | 187731731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Textiles, Apparel & Luxury Goods | 104420777 |  |  | 104420777 |
|  Total Common Stocks | 3037052264 | 58202957 |  | 3095255221 |
|  Total Escrow Shares\* |  |  | 0 | 0 |
|  Total Short-Term Investments\* |  | 66362008 |  | 66362008 |
|  Total Investments | $3037052264 | $124564965 | $— | $3161617229 |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) | $3161617229 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 207420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 3439202 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 12529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 3165276380 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 2596695 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1532241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 206230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 221996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 275556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 4832718 |
|  **Net Assets** | $3160443662 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1971211414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 1189232248 |
|  **Net Assets** | $3160443662 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1961305227 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 592505973 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 606632462 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 65180833 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 20126083 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 20488828 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $30.09 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 29.44 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 29.61 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $2,340,072,985.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $65321814 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 738941 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 51506 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 66112261 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 24031234 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 134806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 172326 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 1560866 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 973383 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 141607 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 28235 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 28776 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 27172240 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (5065333) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (5051) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 22101856 |
|  **Net Investment Income** | 44010405 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 326274164 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (78591) |
|  Net realized gain (loss) | 326195573 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (582155104) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (175) |
|  Net change in unrealized appreciation (depreciation) | (582155279) |
|  Net realized and unrealized gain (loss) | (255959706) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(211949301) |

---

(a) Net of foreign withholding taxes of $197,254.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $44010405 | $47264680 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 326195573 | 616509372 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (582155279) | 203853951 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (211949301) | 867628003 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (412092119) | (159804681) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (121585608) | (45124383) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (126579004) | (47870528) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (660256731) | (252799592) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 48739274 | (515681268) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (823466758) | 99147143 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 3983910420 | 3884763277 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $3160443662 | $3983910420 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 854954 | $27994700 | 805194 | $29290433 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 14850166 | 412092119 | 4530895 | 159804681 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (12870892) | (427755158) | (15512530) | (582523030) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 2834228 | $12331661 | (10176441) | $(393427916) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1081109 | $34540702 | 961710 | $34298318 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 4471703 | 121585608 | 1301164 | 45124383 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3922671) | (128404388) | (3884625) | (140942045) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1630141 | $27721922 | (1621751) | $(61519344) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 307168 | $9997053 | 624658 | $21548681 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 4631504 | 126579004 | 1374405 | 47870528 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3866190) | (127890366) | (3583255) | (130153217) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1072482 | $8685691 | (1584192) | $(60734008) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $48739274 |  | $(515681268) |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $39.97 | $34.36 | $35.51 | $30.01 | $32.30 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.45 | 0.47 | 0.49 | 0.52 | 0.50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.09) | 7.60 | 2.66 | 8.43 | (0.45) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.64) | 8.07 | 3.15 | 8.95 | 0.05 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.54) | (0.53) | (0.56) | (0.57) | (0.58) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (6.70) | (1.93) | (3.74) | (2.88) | (1.76) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (7.24) | (2.46) | (4.30) | (3.45) | (2.34) |
|  **Net Asset Value, End of Period** | $30.09 | $39.97 | $34.36 | $35.51 | $30.01 |
|  **Total Return (%)** (b) | (5.08) | 24.43 | 11.27 | 30.94 | (0.09) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.73 | 0.72 | 0.73 | 0.72 | 0.72 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.58 | 0.57 | 0.58 | 0.58 | 0.57 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.37 | 1.27 | 1.53 | 1.54 | 1.54 |
|  Portfolio turnover rate (%) | 10 | 15 | 15 | 16 | 22 |
|  Net assets, end of period (in millions) | $1961.3 | $2492 | $2492.1 | $2457.8 | $2225.6 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $39.25 | $33.79 | $34.99 | $29.60 | $31.89 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.36 | 0.37 | 0.41 | 0.43 | 0.41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.03) | 7.47 | 2.60 | 8.32 | (0.44) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.67) | 7.84 | 3.01 | 8.75 | (0.03) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.44) | (0.45) | (0.47) | (0.48) | (0.50) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (6.70) | (1.93) | (3.74) | (2.88) | (1.76) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (7.14) | (2.38) | (4.21) | (3.36) | (2.26) |
|  **Net Asset Value, End of Period** | $29.44 | $39.25 | $33.79 | $34.99 | $29.60 |
|  **Total Return (%)** (b) | (5.31) | 24.11 | 10.97 | 30.64 | (0.35) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.98 | 0.97 | 0.98 | 0.97 | 0.97 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.83 | 0.82 | 0.83 | 0.83 | 0.82 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.12 | 1.02 | 1.28 | 1.29 | 1.29 |
|  Portfolio turnover rate (%) | 10 | 15 | 15 | 16 | 22 |
|  Net assets, end of period (in millions) | $592.5 | $726 | $679.8 | $681.3 | $601.2 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $39.44 | $33.94 | $35.13 | $29.71 | $32.00 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.40 | 0.41 | 0.44 | 0.46 | 0.44 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.05) | 7.50 | 2.62 | 8.36 | (0.44) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.65) | 7.91 | 3.06 | 8.82 | 0.00 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.48) | (0.48) | (0.51) | (0.52) | (0.53) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (6.70) | (1.93) | (3.74) | (2.88) | (1.76) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (7.18) | (2.41) | (4.25) | (3.40) | (2.29) |
|  **Net Asset Value, End of Period** | $29.61 | $39.44 | $33.94 | $35.13 | $29.71 |
|  **Total Return (%)** (b) | (5.21) | 24.23 | 11.08 | 30.77 | (0.25) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.88 | 0.87 | 0.88 | 0.87 | 0.87 |
|  Net ratio of expenses to average net assets (%) (c) (d) | 0.73 | 0.72 | 0.73 | 0.73 | 0.72 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.22 | 1.12 | 1.38 | 1.39 | 1.39 |
|  Portfolio turnover rate (%) | 10 | 15 | 15 | 16 | 22 |
|  Net assets, end of period (in millions) | $606.6 | $765.8 | $712.8 | $717.9 | $653.2 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) The effect of the voluntary portion of the waivers on the net ratio of expenses to average net assets was 0.03% for each of the years ended December 31, 2022 through 2018. (see Note 5 of the Notes to Financial
Statements).

(d) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-12** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-13** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $24,661,384, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations.

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

As of December 31, 2022, there were no securities on loan.

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

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

**BHFTII-14** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID- 19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**BHFTII-15** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $345111004 | $0 | $947086040 |

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The Portfolio engaged in security transactions with other accounts managed by Wellington Management Company LLP, the subadviser to the Portfolio, that amounted to $3,169,083 in purchases of investments, which are included above.

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

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| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $24031234 | 0.750% | Of the first $1 billion |
|  | 0.700% | On the next $2 billion |
|  | 0.650% | On amounts in excess of $3 billion |

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Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Wellington Management Company LLP (the "Subadviser") is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

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| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.120% | First $500 million |
| 0.145% | $500 million to $1 billion |
| 0.120% | $1 billion to $3 billion |
| 0.080% | $3 billion to $4.5 billion |
| 0.105% | Over $4.5 billion |

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An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 were $4,035,223 and are included in the total amount shown as management fee waivers in the Statement of Operations.

The Subadviser has voluntarily agreed to waive a portion of its subadvisory fees payable by the Adviser to the Subadviser for managing the Portfolio. In addition to the above advisory fee waiver, the Adviser has agreed to reduce its advisory fee reflecting a portion of the amount waived by the Subadviser for managing the Portfolio pursuant to the voluntary subadvisory fee waiver. $1,030,110 was waived in the aggregate for the year ended December 31, 2022 and is reflected in the total amount shown as a management fee waiver in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor

**BHFTII-16** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

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| | |
|:---|:---|
|  Cost basis of investments | $2342246509 |
|  Gross unrealized appreciation | 877082710 |
|  Gross unrealized (depreciation) | (57711990) |
|  Net unrealized appreciation (depreciation) | $819370720 |

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The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $53836793 | $52327852 | $606419938 | $200471740 | $660256731 | $252799592 |

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As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $43562331 | $326520601 | $819371312 | $– $| 1189454244 |

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The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

**BHFTII-17** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-18** 

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**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Brighthouse/Wellington Core Equity Opportunities Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Brighthouse/Wellington Core Equity Opportunities Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Brighthouse/Wellington Core Equity Opportunities Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT</u> <u>II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Brighthouse/Wellington Core Equity Opportunities Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Wellington Management Company LLP regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the Russell 1000 Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Brighthouse/Wellington Core Equity Opportunities Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Universe median, the Expense Group median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were above the averages of the Sub-advised Expense Universe and the Sub-advised Expense Group at the Portfolio's current size.

**BHFTII-25** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Managed by Frontier Capital Management Company, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, D and E shares of the Frontier Mid Cap Growth Portfolio returned -28.15%, -28.33%, -28.21%, and -28.25%, respectively. The Portfolio's benchmark, the Russell Midcap Growth Index¹, returned -26.72%.

**MARKET ENVIRONMENT/CONDITIONS** 

Equities fell sharply as the U.S. economy transitioned from a robust recovery to a steep slowdown, accelerated by rising interest rates and a screeching inventory adjustment. The market decline was front-loaded as the U.S. Gross Domestic Product registered two consecutive quarters of negative growth to start the year. At the same time, the Russia-Ukraine conflict worsened the already high inflation outlook. The Federal Reserve Bank (the "Fed") responded with one of the steepest interest rate increases in history, clobbering equity valuations and sending stocks to their worst first-half return in over fifty years. Growth stocks bore the brunt of rising interest rates as investors marked down the present value of distant future earnings while bidding up shares of commodity producers and seeking refuge in Consumer Staples and Utilities.

Stocks stabilized as the year progressed following a dismal first half. Oversold conditions and hopes of peak inflation led to brisk rallies that fizzled amid a drumbeat of hawkish Fed commentary. Yet, the inflation backdrop improved considerably approaching year end on cooling commodity prices, easing supply chain issues and early signs of a loosening labor market. Stocks rallied in response in the year's final months, snapping a three-quarter losing streak to end the year on a positive note even though investors worried about a looming recession.

**PORTFOLIO REVIEW/PERIOD END POSITIONING** 

The Portfolio underperformed the Russell Midcap Growth Index due to a mix of unfavorable stock selection and adverse sector allocation. Our combined underweight position (3% vs. 6%) in the top performing Energy and Consumer Staples sectors detracted from performance, accounting for more than the entire annual shortfall as investors reached for an inflation hedge on one hand and safety on the other. The Energy sector gained 58% as prices spiked partly due to the supply disruptions from the Russia-Ukraine conflict.

In terms of stock selection, the primary detractors were in the Financials sector, followed by Energy and Information Technology ("IT"), while Industrials and Health Care were notable contributors. Our investments exposed to alternative asset managers underperformed in the face of rising interest rates, turning some of the biggest previous-year winners into loss leaders. SVB Financial Group fell due to slowing deposit growth and margin contraction. The bank experienced elevated outflows as private companies ate into their balances amid a paucity of venture funding, forcing SVB to seek higher-cost capital. Private Equity firm KKR & Co. declined due to moderating asset growth and a slowdown in deal activity. There are early signs of improving fundamentals in both companies, and they trade at a significant discount to their earnings potential. Permian-based oil and gas producer SM Energy declined on weaker-than-expected cash flow and disappointing oil production guidance for the fourth quarter. We view both of these issues as short-term noise, given that SM Energy achieved its financial leverage target a quarter earlier than expected. The company plans to return most of its free cash flow to shareholders in 2023 and beyond. Oil and gas producer Coterra Energy retreated on an inventory write-down in the Marcellus region following a string of strong quarterly results. While the company does not expect any changes to its cash flow and operating results over the next five years, we lowered our estimate of its earnings multiple and reduced our holding size. In IT, payment processor Block fell on deteriorating sentiment around Bitcoin and Buy-Now-Pay-Later lenders, while recession fears dented the growth outlook in its payments segment. Yet, its cash app continues to exceed investors' expectations, and Bitcoin remains an immaterial part of its overall business, enabling the company to post better-than-expected results. Semiconductor supplier Marvell Technology experienced slowing demand for data center chips as its customers reduced orders due to easing supply constraints.

In Industrials, the Portfolio benefited from owning companies critical to electrical grid modernization and service providers with solid pricing power. Engineering services company Quanta Services profited from higher spending on 5G telecom and electrical grid hardening projects. Its acquisition of Blattner Holding, one of the largest utility-scale renewable energy providers and the acquistion of engineering and contract services provider KBR outperformed as investors gravitated toward its recurring government-related work. Its clean-energy project outlook also improved with higher commodity prices and a constructive regulatory backdrop. Stock selection in Health Care benefited from favorable mergers and acquisitions activity. Home health services provider Signify Health and rare-diseases pharmaceutical provider Horizon Therapeutics signed agreements to be acquired at premiums of 78% and 48%, respectively.

During the period, we increased our exposure to Energy, Industrials and Health Care while reducing Consumer Discretionary and IT weightings. We added traditional oil and gas producers and alternative energy holdings. In Industrials, we bought professional services providers with recurring-revenue business models that traded at a steep discount to their earnings power during the market selloff. We reduced our genetic sequencing-related holdings in Health Care and added to managed care companies. Within Consumer Discretionary, we reallocated capital from apparel and home goods to value retailers and auto parts suppliers. Similarly, we exited some of our smaller software positions in IT while opportunistically buying services companies. At period end, the Portfolio was overweight Health Care and

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Managed by Frontier Capital Management Company, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

Financials with a focus on managed care providers and alternative asset managers. The Portfolio had no holdings in the Consumer Staples and Real Estate sectors, as stocks remained expensive compared to their growth prospects.

**Christopher J. Scarpa** 

**Ravi Dabas** 

Portfolio Managers

*Frontier Capital Management Company, LLC* 

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

<sup>1</sup> The Russell Midcap Growth Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with higher price-to-book ratios and higher forecasted growth values.

**BHFTII-2** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP GROWTH INDEX**![LOGO](g400324g96v70.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Frontier Mid Cap Growth Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -28.15 | 6.39 | 10.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -28.33 | 6.13 | 10.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class D** | -28.21 | 6.28 | 10.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -28.25 | 6.23 | 10.41 |
| &nbsp;&nbsp;&nbsp;**Russell Midcap Growth Index** | -26.72 | 7.64 | 11.41 |

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Aon plc - Class A** | **3.6** |
| **Cintas Corp.** | **2.6** |
| **Palo Alto Networks, Inc.** | **2.5** |
| **Fair Isaac Corp.** | **2.5** |
| **Agilent Technologies, Inc.** | **2.4** |
| **EPAM Systems, Inc.** | **2.3** |
| **KKR & Co., Inc.** | **2.0** |
| **Mattel, Inc.** | **2.0** |
| **Planet Fitness, Inc. - Class A** | **1.9** |
| **KBR, Inc.** | **1.9** |

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**Top Sectors** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Information Technology** | **27.8** |
| **Health Care** | **21.8** |
| **Consumer Discretionary** | **16.3** |
| **Industrials** | **15.0** |
| **Financials** | **12.1** |
| **Energy** | **3.1** |
| **Materials** | **1.8** |
| **Communication Services** | **1.6** |

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**BHFTII-3** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Frontier Mid Cap Growth Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.71% | $1000.00 | $1048.30 | $3.67 |
|  | Hypothetical\* | 0.71% | $1000.00 | $1021.63 | $3.62 |
|  Class B (a) | Actual | 0.96% | $1000.00 | $1047.20 | $4.95 |
|  | Hypothetical\* | 0.96% | $1000.00 | $1020.37 | $4.89 |
|  Class D (a) | Actual | 0.81% | $1000.00 | $1048.00 | $4.18 |
|  | Hypothetical\* | 0.81% | $1000.00 | $1021.12 | $4.13 |
|  Class E (a) | Actual | 0.86% | $1000.00 | $1047.20 | $4.44 |
|  | Hypothetical\* | 0.86% | $1000.00 | $1020.87 | $4.38 |

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

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

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

**BHFTII-4** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—99.5% of Net Assets** 

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| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Banks—1.2%** | | | |
|  SVB Financial Group (a) | 52812 | $| 12154154 |
| **Biotechnology—1.9%** |  |  |  |
|  BioMarin Pharmaceutical, Inc. (a) | 64167 |  | 6640643 |
|  Exact Sciences Corp. (a) (b) | 89161 |  | 4414361 |
|  Sarepta Therapeutics, Inc. (a) (b) | 56599 |  | 7334098 |
|  |  |  | 18389102 |
| **Building Products—1.2%** |  |  |  |
|  Builders FirstSource, Inc. (a) (b) | 180818 |  | 11731472 |
| **Capital Markets—5.6%** |  |  |  |
|  KKR & Co., Inc. | 423834 |  | 19674374 |
|  LPL Financial Holdings, Inc. | 53281 |  | 11517754 |
|  Moody's Corp. | 22249 |  | 6199016 |
|  MSCI, Inc. (b) | 38123 |  | 17733676 |
|  |  |  | 55124820 |
| **Chemicals—1.0%** |  |  |  |
|  Sherwin-Williams Co. (The) | 39290 |  | 9324696 |
| **Commercial Services & Supplies—4.3%** |  |  |  |
|  Cintas Corp. | 56385 |  | 25464594 |
|  Waste Connections, Inc. | 121481 |  | 16103521 |
|  |  |  | 41568115 |
| **Communications Equipment—1.5%** |  |  |  |
|  Arista Networks, Inc. (a) | 122749 |  | 14895591 |
| **Construction & Engineering—2.7%** |  |  |  |
|  MasTec, Inc. (a) (b) | 135963 |  | 11601723 |
|  Quanta Services, Inc. (b) | 106729 |  | 15208882 |
|  |  |  | 26810605 |
| **Diversified Consumer Services—0.7%** |  |  |  |
|  Bright Horizons Family Solutions, Inc. (a) | 106624 |  | 6727974 |
| **Diversified Financial Services—1.6%** |  |  |  |
|  Apollo Global Management, Inc. | 244557 |  | 15600291 |
| **Electrical Equipment—1.5%** |  |  |  |
|  Array Technologies, Inc. (a) (b) | 504597 |  | 9753860 |
|  Shoals Technologies Group, Inc.—Class A (a) (b) | 194484 |  | 4797920 |
|  |  |  | 14551780 |
| **Electronic Equipment, Instruments & Components—0.7%** | **Electronic Equipment, Instruments & Components—0.7%** | **Electronic Equipment, Instruments & Components—0.7%** | **Electronic Equipment, Instruments & Components—0.7%** |
|  Amphenol Corp. - Class A | 95384 |  | 7262538 |
| **Entertainment—0.7%** |  |  |  |
|  Live Nation Entertainment, Inc. (a) | 96811 |  | 6751599 |
| **Health Care Equipment & Supplies—10.7%** |  |  |  |
|  Alcon, Inc. (b) | 140257 |  | 9614617 |
|  Align Technology, Inc. (a) | 28129 |  | 5932406 |
|  DexCom, Inc. (a) | 148066 |  | 16766994 |
| **Health Care Equipment & Supplies—Continued)** |  |  |  |
|  Edwards Lifesciences Corp. (a) | 49138 |  | 3666186 |
|  Hologic, Inc. (a) | 202038 |  | 15114463 |
|  IDEXX Laboratories, Inc. (a) | 26031 |  | 10619607 |
|  Inspire Medical Systems, Inc. (a) (b) | 44462 |  | 11199089 |
|  Insulet Corp. (a) | 44942 |  | 13230475 |
|  Novocure, Ltd. (a) (b) | 52902 |  | 3880362 |
|  ResMed, Inc. | 15342 |  | 3193130 |
|  Teleflex, Inc. (b) | 46560 |  | 11622773 |
|  |  |  | 104840102 |
| **Health Care Providers & Services—4.4%** |  |  |  |
|  Humana, Inc. | 34288 |  | 17561971 |
|  Molina Healthcare, Inc. (a) | 22210 |  | 7334186 |
|  Signify Health, Inc. - Class A (a) (b) | 629026 |  | 18027885 |
|  |  |  | 42924042 |
| **Health Care Technology—1.3%** |  |  |  |
|  Veeva Systems, Inc. - Class A (a) | 79224 |  | 12785169 |
| **Hotels, Restaurants & Leisure—5.4%** |  |  |  |
|  Caesars Entertainment, Inc. (a) | 373698 |  | 15545837 |
|  Chipotle Mexican Grill, Inc. (a) (b) | 7616 |  | 10567124 |
|  Darden Restaurants, Inc. | 54057 |  | 7477705 |
|  Planet Fitness, Inc. - Class A (a) | 240273 |  | 18933512 |
|  |  |  | 52524178 |
| **Insurance—3.6%** |  |  |  |
|  Aon plc - Class A | 118375 |  | 35529073 |
| **Internet & Direct Marketing Retail—0.5%** |  |  |  |
|  Chewy, Inc. - Class A (a) (b) | 133136 |  | 4936683 |
| **IT Services—6.4%** |  |  |  |
|  Block, Inc. (a) | 112939 |  | 7097087 |
|  EPAM Systems, Inc. (a) | 68523 |  | 22457728 |
|  Genpact, Ltd. | 323256 |  | 14973218 |
|  Global Payments, Inc. | 118865 |  | 11805672 |
|  Okta, Inc. (a) (b) | 96074 |  | 6564736 |
|  |  |  | 62898441 |
| **Leisure Products—2.0%** |  |  |  |
|  Mattel, Inc. (a) (b) | 1078496 |  | 19240369 |
| **Life Sciences Tools & Services—3.0%** |  |  |  |
|  Agilent Technologies, Inc. | 157964 |  | 23639312 |
|  Illumina, Inc. (a) | 29068 |  | 5877550 |
|  |  |  | 29516862 |
| **Metals & Mining—0.9%** |  |  |  |
|  ATI, Inc. (a) (b) | 289733 |  | 8651427 |
| **Multiline Retail—1.7%** |  |  |  |
|  Dollar General Corp. | 66432 |  | 16358880 |

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*See accompanying notes to financial statements.* 

**BHFTII-5** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

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| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Oil, Gas & Consumable Fuels—3.1%** | | | |
|  Coterra Energy, Inc. (b) | 663725 | $| 16307723 |
|  SM Energy Co. (b) | 392806 |  | 13681433 |
|  |  |  | 29989156 |
| **Pharmaceuticals—0.5%** |  |  |  |
|  Catalent, Inc. (a) | 102780 |  | 4626128 |
| **Professional Services—3.6%** |  |  |  |
|  Equifax, Inc. (b) | 41848 |  | 8133577 |
|  KBR, Inc. (b) | 351620 |  | 18565536 |
|  TransUnion | 152354 |  | 8646090 |
|  |  |  | 35345203 |
| **Road & Rail—1.7%** |  |  |  |
|  Knight-Swift Transportation Holdings, Inc. (b) | 186742 |  | 9787148 |
|  XPO Logistics, Inc. (a) (b) | 199927 |  | 6655570 |
|  |  |  | 16442718 |
| **Semiconductors & Semiconductor Equipment—8.7%** | **Semiconductors & Semiconductor Equipment—8.7%** | **Semiconductors & Semiconductor Equipment—8.7%** | **Semiconductors & Semiconductor Equipment—8.7%** |
|  KLA Corp. | 32130 |  | 12113974 |
|  Lam Research Corp. | 28983 |  | 12181555 |
|  Marvell Technology, Inc. | 271026 |  | 10038803 |
|  Microchip Technology, Inc. | 242290 |  | 17020872 |
|  Monolithic Power Systems, Inc. (b) | 22615 |  | 7996890 |
|  SiTime Corp. (a) (b) | 34251 |  | 3480587 |
|  SolarEdge Technologies, Inc. (a) | 26508 |  | 7508921 |
|  Universal Display Corp. | 23321 |  | 2519601 |
|  Wolfspeed, Inc. (a) (b) | 180999 |  | 12496171 |
|  |  |  | 85357374 |
| **Software—11.2%** |  |  |  |
|  Atlassian Corp. - Class A (a) (b) | 52421 |  | 6745534 |
|  Autodesk, Inc. (a) | 27318 |  | 5104915 |
|  Bill.com Holdings, Inc. (a) (b) | 71005 |  | 7736705 |
|  Crowdstrike Holdings, Inc. - Class A (a) | 43034 |  | 4531050 |
|  Fair Isaac Corp. (a) (b) | 40160 |  | 24038973 |
|  HubSpot, Inc. (a) (b) | 27388 |  | 7918692 |
|  Palo Alto Networks, Inc. (a) (b) | 178140 |  | 24857656 |
|  Paycom Software, Inc. (a) (b) | 51851 |  | 16089884 |
|  Trade Desk, Inc. (The) - Class A (a) (b) | 191023 |  | 8563561 |
|  Workday, Inc. - Class A (a) | 24101 |  | 4032820 |
|  |  |  | 109619790 |
| **Specialty Retail—6.2%** |  |  |  |
|  Advance Auto Parts, Inc. | 71821 |  | 10559842 |
|  Burlington Stores, Inc. (a) (b) | 53576 |  | 10863070 |
|  Floor & Decor Holdings, Inc. - Class A (a) (b) | 58702 |  | 4087420 |
|  Leslie's, Inc. (a) (b) | 428331 |  | 5229921 |
|  Lithia Motors, Inc. (b) | 31651 |  | 6480226 |
|  O'Reilly Automotive, Inc. (a) | 13045 |  | 11010371 |
|  Ross Stores, Inc. | 102085 |  | 11849006 |
|  |  |  | 60079856 |
|  Total Common Stocks <br>(Cost $1,010,172,095) |  |  | 972558188 |
| **Short-Term Investment—1.1%** |  |  |  |
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Repurchase Agreement—1.1%** |  |  |  |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $10,289,906; collateralized by U.S. Treasury Bond at 2.375%, maturing 05/15/51, with a market value of $10,493,629. | 10287848 |  | 10287848 |
|  Total Short-Term Investments <br>(Cost $10,287,848) |  |  | 10287848 |
| **Securities Lending Reinvestments (c)—14.6%** | **Securities Lending Reinvestments (c)—14.6%** | **Securities Lending Reinvestments (c)—14.6%** | **Securities Lending Reinvestments (c)—14.6%** |
| **Certificates of Deposit—10.0%** |  |  |  |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (d) | 5000000 |  | 5000000 |
|  Bank of Nova Scotia<br>4.810%, SOFR + 0.510%, 03/15/23 (d) | 7000000 |  | 7002942 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (d) | 1000000 |  | 1001169 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (d) | 10000000 |  | 9999980 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (d) | 4000000 |  | 4001392 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (d) | 6000000 |  | 6000397 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (d) | 6000000 |  | 6002297 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (d) | 5000000 |  | 5000355 |
|  Commonwealth Bank of Australia<br>4.680%, SOFR + 0.380%, 03/30/23 (d) | 2000000 |  | 2000148 |
|  Cooperatieve Rabobank UA<br>4.670%, SOFR + 0.370%, 03/20/23 (d) | 5000000 |  | 5000000 |
|  Credit Industriel et Commercial<br>4.730%, SOFR + 0.430%, 01/06/23 (d) | 5000000 |  | 5000140 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (d) | 6000000 |  | 6001800 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (d) | 3000000 |  | 3000901 |
|  Natixis S.A.<br>4.750%, SOFR + 0.450%, 06/21/23 (d) | 2000000 |  | 2000648 |
|  Nordea Bank Abp (NY)<br>4.850%, SOFR + 0.550%, 02/21/23 (d) | 2000000 |  | 2000670 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (d) | 5000000 |  | 4999920 |
|  Standard Chartered Bank (NY)<br>4.860%, FEDEFF PRV + 0.530%, 01/17/23 (d) | 2000000 |  | 2000246 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (d) | 4000000 |  | 4000440 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (d) | 5000000 |  | 5001640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.840%, SOFR + 0.540%, 01/10/23 (d) | 2000000 |  | 2000156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (d) | 2000000 |  | 2000556 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (d) | 3000000 |  | 2999868 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (d) | 5000000 |  | 4999450 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (d) | 1000000 |  | 1000341 |
|  |  |  | 98015456 |

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*See accompanying notes to financial statements.* 

**BHFTII-6** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (c)—(Continued)** 

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal**<br> **Amount\*** | **Value** |
| **Commercial Paper—1.1%** | | |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (d) | 5000000 | $5006810 |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (d) | 4000000 | 4001080 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (d) | 2000000 | 2001976 |
|  |  | 11009866 |
| **Repurchase Agreements—3.2%** |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $17,380,401; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $17,719,740. | 17372294 | 17372294 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $6,026,950; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $6,120,000. | 6000000 | 6000000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $5,804,872; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $5,929,794. | 5800000 | 5800000 |
|  Societe Generale <br>Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $2,001,719; collateralized by various Common Stock with an aggregate market value of $2,226,384. | 2000000 | 2000000 |
|  |  | 31172294 |
| **Time Deposit—0.1%** |  |  |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (d) | 1000000 | 1000000 |
| **Mutual Funds—0.2%** |  |  |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (e) | 2000000 | 2000000 |
|  Total Securities Lending Reinvestments <br>(Cost $143,172,294) |  | 143197616 |
|  Total Investments—115.2% <br>(Cost $1,163,632,237) |  | 1126043652 |
|  Other assets and liabilities (net)—(15.2)% |  | (148328637) |
|  **Net Assets—100.0%** |  | $977715015 |

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\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $139,854,711 and the collateral received consisted of cash in the amount of $143,172,294 and non-cash collateral with a value of $369,892. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(d) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(e) The rate shown represents the annualized seven-day yield as of December 31, 2022.

**Glossary of Abbreviations** 

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $972558188 | $— | $— | $972558188 |
|  Total Short-Term Investment\* |  | 10287848 |  | 10287848 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 98015456 |  | 98015456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 11009866 |  | 11009866 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 31172294 |  | 31172294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposit |  | 1000000 |  | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 2000000 |  |  | 2000000 |
|  Total Securities Lending Reinvestments | 2000000 | 141197616 |  | 143197616 |
|  Total Investments | $974558188 | $151485464 | $— | $1126043652 |
|  Collateral for Securities Loaned (Liability) | $— | $(143172294) | $— | $(143172294) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1126043652 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 3882260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 125660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 330070 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1130385291 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 143172294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 8322618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 242626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 572361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 34823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 176114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 149440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 152670276 |
|  **Net Assets** | $977715015 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1064094805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (86379790) |
|  **Net Assets** | $977715015 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $774627500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 128249008 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 67870642 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 6967865 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 36399564 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 8034982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 3379833 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 353129 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $21.28 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 15.96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 20.08 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 19.73 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Includes securities loaned at value of $139,854,711.

(b) Identified cost of investments was $1,163,632,237.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $6233056 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 63893 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 514027 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 6810976 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 7924764 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 54305 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 71271 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 365977 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class D | 77299 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 12184 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 84393 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 9733 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 16560 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 8717493 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (516808) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (57755) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 8142930 |
|  **Net Investment Loss** | (1331954) |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (45214928) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | 3688 |
|  Net realized gain (loss) | (45211240) |
| Net change in unrealized depreciation on investments | (355531666) |
|  Net realized and unrealized gain (loss) | (400742906) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(402074860) |

---

(a) Net of foreign withholding taxes of $24,991.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $(1331954) | $(6407412) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (45211240) | 329724802 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (355531666) | (123522651) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (402074860) | 199794739 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (248481947) | (150697781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (50426272) | (29457904) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D | (22792054) | (14173486) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (2460063) | (1562610) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Return of Capital** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (266232) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (54029) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D | (24420) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (2636) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (324507653) | (195891781) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 258788226 | 27852243 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (467794287) | 31755201 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1445509302 | 1413754101 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $977715015 | $1445509302 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 500507 | $15557949 | 156492 | $7023279 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 12187564 | 248748179 | 3713597 | 150697781 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2400743) | (65773641) | (3062371) | (136875994) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 10287328 | $198532487 | 807718 | $20845066 |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 590406 | $14106289 | 374155 | $14083816 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3292909 | 50480301 | 871020 | 29457904 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1031407) | (21285257) | (1060438) | (40144628) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 2851908 | $43301333 | 184737 | $3397092 |
|  **Class D** | **Class D** | **Class D** | **Class D** | **Class D** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 78349 | $2061273 | 263431 | $11616000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 1184041 | 22816474 | 362679 | 14173486 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (345862) | (9369681) | (503594) | (21764385) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 916528 | $15508066 | 122516 | $4025101 |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 16491 | $411030 | 9567 | $404559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 130026 | 2462699 | 40419 | 1562610 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (58293) | (1427389) | (55496) | (2382185) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 88224 | $1446340 | (5510) | $(415016) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $258788226 |  | $27852243 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $43.74 | $44.02 | $37.70 | $32.45 | $38.43 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.02) | (0.18) | (0.04) | (0.01) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (12.71) | 6.16 | 10.57 | 10.30 | (1.60) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.73) | 5.98 | 10.53 | 10.29 | (1.63) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (9.72) | (6.26) | (4.21) | (5.04) | (4.35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.01) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (9.73) | (6.26) | (4.21) | (5.04) | (4.35) |
|  **Net Asset Value, End of Period** | $21.28 | $43.74 | $44.02 | $37.70 | $32.45 |
|  **Total Return (%)** (b) | (28.15) | 14.68 | 31.70 | 33.13 | (5.64) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.75 | 0.73 | 0.75 | 0.75 | 0.75 |
|  Net ratio of expenses to average net assets (%) (c) | 0.70 | 0.71 | 0.73 | 0.73 | 0.73 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.08) | (0.40) | (0.10) | (0.02) | (0.08) |
|  Portfolio turnover rate (%) | 47 | 55 | 64 | 60 | 44 |
|  Net assets, end of period (in millions) | $774.6 | $1142.1 | $1114 | $955.7 | $799 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $36.41 | $37.72 | $32.99 | $28.97 | $34.83 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.07) | (0.24) | (0.11) | (0.09) | (0.11) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (10.65) | 5.19 | 9.05 | 9.15 | (1.40) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (10.72) | 4.95 | 8.94 | 9.06 | (1.51) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (9.72) | (6.26) | (4.21) | (5.04) | (4.35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.01) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (9.73) | (6.26) | (4.21) | (5.04) | (4.35) |
|  **Net Asset Value, End of Period** | $15.96 | $36.41 | $37.72 | $32.99 | $28.97 |
|  **Total Return (%)** (b) | (28.33) | 14.38 | 31.38 | 32.84 | (5.90) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.00 | 0.98 | 1.00 | 1.00 | 1.00 |
|  Net ratio of expenses to average net assets (%) (c) | 0.95 | 0.96 | 0.98 | 0.98 | 0.98 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.33) | (0.65) | (0.35) | (0.27) | (0.33) |
|  Portfolio turnover rate (%) | 47 | 55 | 64 | 60 | 44 |
|  Net assets, end of period (in millions) | $128.2 | $188.7 | $188.5 | $164.6 | $144.9 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class D** | **Class D** | **Class D** | **Class D** | **Class D** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $42.10 | $42.64 | $36.68 | $31.71 | $37.69 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.05) | (0.21) | (0.07) | (0.04) | (0.06) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (12.24) | 5.93 | 10.24 | 10.05 | (1.57) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.29) | 5.72 | 10.17 | 10.01 | (1.63) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (9.72) | (6.26) | (4.21) | (5.04) | (4.35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.01) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (9.73) | (6.26) | (4.21) | (5.04) | (4.35) |
|  **Net Asset Value, End of Period** | $20.08 | $42.10 | $42.64 | $36.68 | $31.71 |
|  **Total Return (%)** (b) | (28.21) | 14.54 | 31.59 | 33.01 | (5.76) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.85 | 0.83 | 0.85 | 0.85 | 0.85 |
|  Net ratio of expenses to average net assets (%) (c) | 0.80 | 0.81 | 0.83 | 0.83 | 0.83 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.18) | (0.50) | (0.20) | (0.12) | (0.18) |
|  Portfolio turnover rate (%) | 47 | 55 | 64 | 60 | 44 |
|  Net assets, end of period (in millions) | $67.9 | $103.7 | $99.8 | $85.6 | $74.2 |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $41.63 | $42.25 | $36.40 | $31.52 | $37.50 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.06) | (0.23) | (0.09) | (0.06) | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (12.11) | 5.87 | 10.15 | 9.98 | (1.55) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.17) | 5.64 | 10.06 | 9.92 | (1.63) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (9.72) | (6.26) | (4.21) | (5.04) | (4.35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.01) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (9.73) | (6.26) | (4.21) | (5.04) | (4.35) |
|  **Net Asset Value, End of Period** | $19.73 | $41.63 | $42.25 | $36.40 | $31.52 |
|  **Total Return (%)** (b) | (28.25) | 14.48 | 31.53 | 32.92 | (5.79) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.90 | 0.88 | 0.90 | 0.90 | 0.90 |
|  Net ratio of expenses to average net assets (%) (c) | 0.85 | 0.86 | 0.88 | 0.88 | 0.88 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.23) | (0.55) | (0.25) | (0.17) | (0.23) |
|  Portfolio turnover rate (%) | 47 | 55 | 64 | 60 | 44 |
|  Net assets, end of period (in millions) | $7.0 | $11.0 | $11.4 | $10.0 | $8.3 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-14** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $10,287,848. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $31,172,294. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

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

**BHFTII-15** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

**BHFTII-16** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $515226846 | $0 | $567784532 |

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**5. Investment Management Fees and Other Transactions with Affiliates** 

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

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| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average daily net assets** |
| $7924764 | 0.750% | Of the first $500 million |
|  | 0.700% | Of the next $500 million |
|  | 0.650% | On amounts in excess of $1 billion |

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Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Frontier Capital Management Company, LLC is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waiver** - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

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| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.100% | On the first $500 million |
| 0.025% | Over $850 million and less than $1 billion |
| (0.025)% | Over $1 billion and less than $1.15 billion |

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An identical agreement was in place for the period January 1, 2022 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor

**BHFTII-17** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

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| | |
|:---|:---|
|  Cost basis of investments | $1174381791 |
|  Gross unrealized appreciation | 88463956 |
|  Gross unrealized (depreciation) | (136802095) |
|  Net unrealized appreciation (depreciation) | $(48338139) |

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The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Return of Capital** | **Return of Capital** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $54868580 | $— | $269291756 | $195891781 | $347317 | $— | $324507653 | $195891781 |

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As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $— | $– $| (48338139) | $(37865537) | $(86203676) |

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The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $37,865,537.

**BHFTII-18** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-19** 

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**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Frontier Mid Cap Growth Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Frontier Mid Cap Growth Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Frontier Mid Cap Growth Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Frontier Mid Cap Growth Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Frontier Capital Management Company, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe for the one-, three-, and five-year periods ended June 30, 2022. The Board also considered that the Portfolio outperformed the average of its Morningstar Category for the one-year period ended June 30, 2022 and underperformed the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Russell Midcap Growth Index, for the one-, three- and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Frontier Mid Cap Growth Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Universe and the Sub-advised Expense Group at the Portfolio's current size.

**BHFTII-26** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Managed by Jennison Associates LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Jennison Growth Portfolio returned -38.87%, -39.02%, and -38.98%, respectively. The Portfolio's benchmark, the Russell 1000 Growth Index¹, returned -29.14%.

**MARKET ENVIRONMENT / CONDITIONS** 

Equity markets finished out a challenging year, with major indices closing at or near their 2022 lows. Uncertainty and volatility were enduring constants throughout 2022. Towards the end of the year, an evolving global slowdown saw a broad swath of companies that had benefited most from the pandemic commence headcount reductions and take operational steps to mitigate expected weakness. Commodity prices continued their retreat, despite the lingering impact of the Russia-Ukraine war. China took steps to ease its stifling zero-COVID policy, resulting in a wave of infections, hospitalizations, and further economic dislocation as the year ended.

Economic data continued to reflect the mix of contrasting trends, with strength in employment, wages, and savings largely offsetting the effects of consumer price inflation, falling house prices, and waning spending by lower income households. The persistence of labor market tightness kept the U.S. Federal Reserve (the "Fed") on a tightening path, with the federal funds rate closing the year in the range of 4.25% to 4.50%, levels last seen in 2007. Inflation has been a global phenomenon, and central banks in many countries have followed a path similar to that of the Fed, leading to a partial retracement of the U.S. dollar's significant rise since the end of 2021.

Dampened growth expectations, even among companies benefiting from strong secular trends, and a sharp rise in interest rates led to risk aversion and significant valuation compression over the period. Higher growth, higher valuation yet unprofitable companies were particularly vulnerable to the de-rating that occurred.

The Standard & Poor's ("S&P") 500 Index and Russell 1000 Growth Index posted significant declines in 2022, largely reversing gains from the prior year on the back of the macroeconomic challenges described above.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio underperformed the benchmark, the Russell 1000 Growth Index (the "Index"), over the period. Underperformance in large part reflected the higher expected growth and higher valuation of the Portfolio's holdings. Recognizing changes in discount rates and risk tolerance, we made adjustments to the Portfolio early in, and throughout, the period by reducing or eliminating positions in companies with minimal free cash flows and very high valuations. We also reduced or eliminated companies that benefited disproportionately from pandemic demand, as well as social media companies facing revenue pressures resulting from changes in privacy standards.

Portfolio underperformance was also driven by select positions with disappointing fundamentals. Two names with outsized impact were Shopify (Canada) and Snap. E-commerce leader Shopify suffered a meaningful deceleration after the economy reopened. The company is working to right-size itself for a slower growth trajectory. However, we reduced and ultimately exited the stock, as we came to believe that the need for reinvestment into sales, technology, and physical fulfillment networks would be more significant and for a longer period than we had envisioned. Social media stocks reported disappointing results in 2022 and our position in Snap detracted from performance. The company faced revenue pressures from Apple's privacy changes, given the difficulty in demonstrating the effectiveness of target-marketing campaigns, which led to disappointing earnings. We exited the stock, expecting resolution of these challenges to take some time.

Following significant outperformance, Tesla was an underperformer in this period. Economic sensitivity began to weigh on automobile sales, including electric vehicles ("EV"), in the back half of the year, which prompted Tesla to make several pricing adjustments in the fourth quarter. In the U.S., the company offered incentives to encourage customers to take possession of vehicles before year end, in part to address buyer confusion regarding eligibility for upcoming EV tax credits. In China, pandemic lockdowns, coupled with the ensuing COVID-19 spread upon reopening, severely impacted auto demand, particularly in Tesla's segment. These factors were compounded by the negative impact of Elon Musk's purchase of Twitter, which closed in the fourth quarter after Musk's attempts to walk away from the deal were unsuccessful. A series of provocative political and social tweets added to the potential negative impact on the brand. We lowered our estimates to reflect these developments which, along with elevated uncertainty broadly, led us to reduce our position.

As a group, software stocks also weighed on relative returns. While many of the Portfolio's software holdings continue to report recurring revenue growth in excess of 25%, the slowing economy is leading to longer sales cycles, postponed investments, and lower anticipated revenue growth. The resetting of growth expectations has lowered the valuations investors are willing to pay for long-duration growth stocks, and we reduced our exposure to this space accordingly.

On the positive side, Portfolio holdings in Health Care companies Eli Lilly and Novo Nordisk (Denmark)**,** luxury Consumer Discretionary company LVMH (France), and Energy company Schlumberger helped the Portfolio's relative returns in the period. Adding exposure to Health Care stocks with strong fundamentals and positive multi-year catalysts was an important change in the Portfolio over the course of the year.

Over the 12-month period, we made changes to the Portfolio that reflect the evolving investment climate and our outlook for earnings

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Managed by Jennison Associates LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

growth. We exited positions in the payments space and reduced exposure to software stocks and smaller, less-profitable companies, in favor of select Health Care opportunities, which, in our experience, do not correlate with the economic cycle to a large degree.

As of December 31, 2022, the Portfolio was overweight Consumer Discretionary, Communication Services, and Health Care, while underweight Information Technology and Industrials relative to the Index.

**Kathleen A. McCarragher** 

**Spiros "Sig" Segalas^** 

**Michael A. Del Balso** 

**Blair A. Boyer** 

**Natasha Kuhlkin** 

**Rebecca Irwin** 

Portfolio Managers

*Jennison Associates LLC* 

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

^ Spiros "Sig" Segalas relinquished his portfolio management duties for the Portfolio effective January 2, 2023.

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

**BHFTII-2** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX**![LOGO](g400324g75e21.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Jennison Growth Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -38.87 | 8.40 | 13.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -39.02 | 8.14 | 12.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -38.98 | 8.23 | 12.88 |
| &nbsp;&nbsp;&nbsp;**Russell 1000 Growth Index** | -29.14 | 10.96 | 14.10 |

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Apple, Inc.** | **7.4** |
| **Microsoft Corp.** | **6.2** |
| **Amazon.com, Inc.** | **5.1** |
| **Visa, Inc. - Class A** | **3.9** |
| **Eli Lilly and Co.** | **3.5** |
| **NVIDIA Corp.** | **3.3** |
| **LVMH Moet Hennessy Louis Vuitton SE** | **3.2** |
| **Tesla, Inc.** | **3.0** |
| **Alphabet, Inc. - Class A** | **2.9** |
| **UnitedHealth Group, Inc.** | **2.9** |

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**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Information Technology** | **33.7** |
| **Consumer Discretionary** | **23.6** |
| **Health Care** | **16.7** |
| **Communication Services** | **10.8** |
| **Consumer Staples** | **4.8** |
| **Industrials** | **2.7** |
| **Financials** | **1.7** |
| **Real Estate** | **1.4** |
| **Energy** | **1.3** |

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**BHFTII-3** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<br>Jennison Growth Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,**<br>**2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022**<br>**to**<br>**December 31,**<br>**2022** |
|  Class A (a) | Actual | 0.55% | $1000.00 | $964.90 | $2.72 |
|  | Hypothetical\* | 0.55% | $1000.00 | $1022.43 | $2.80 |
|  Class B (a) | Actual | 0.80% | $1000.00 | $964.30 | $3.96 |
|  | Hypothetical\* | 0.80% | $1000.00 | $1021.17 | $4.08 |
|  Class E (a) | Actual | 0.70% | $1000.00 | $964.20 | $3.47 |
|  | Hypothetical\* | 0.70% | $1000.00 | $1021.68 | $3.57 |

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

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

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

**BHFTII-4** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—96.0% of Net Assets** 

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—0.9%** | | |
|  Northrop Grumman Corp. | 34660 | $18910842 |
| **Automobiles—3.0%** |  |  |
|  Tesla, Inc. (a) (b) | 507921 | 62565709 |
| **Biotechnology—1.4%** |  |  |
|  Vertex Pharmaceuticals, Inc. (b) | 98984 | 28584599 |
| **Capital Markets—1.7%** |  |  |
|  Goldman Sachs Group, Inc. (The) | 49554 | 17015852 |
|  KKR & Co., Inc. | 149101 | 6921268 |
|  S&P Global, Inc. | 36791 | 12322778 |
|  |  | 36259898 |
| **Energy Equipment & Services—1.3%** |  |  |
|  Schlumberger, Ltd. | 504452 | 26968004 |
| **Entertainment—2.8%** |  |  |
|  Netflix, Inc. (b) | 146374 | 43162765 |
|  ROBLOX Corp. - Class A (b) | 239964 | 6829376 |
|  Spotify Technology S.A. (b) | 97932 | 7731731 |
|  |  | 57723872 |
| **Equity Real Estate Investment Trusts—1.4%** | **Equity Real Estate Investment Trusts—1.4%** |  |
|  American Tower Corp. | 141545 | 29987724 |
| **Food & Staples Retailing—2.9%** |  |  |
|  Costco Wholesale Corp. | 132676 | 60566594 |
| **Health Care Equipment & Supplies—4.4%** |  |  |
|  Abbott Laboratories (a) | 269887 | 29630894 |
|  DexCom, Inc. (b) | 269434 | 30510706 |
|  Intuitive Surgical, Inc. (b) | 118307 | 31392762 |
|  |  | 91534362 |
| **Health Care Providers & Services—2.9%** |  |  |
|  UnitedHealth Group, Inc. | 114296 | 60597453 |
| **Hotels, Restaurants & Leisure—3.6%** |  |  |
|  Airbnb, Inc. - Class A (b) | 241619 | 20658424 |
|  Chipotle Mexican Grill, Inc. (b) | 27334 | 37925652 |
|  Marriott International, Inc. - Class A | 109267 | 16268764 |
|  |  | 74852840 |
| **Interactive Media & Services—6.3%** |  |  |
|  Alphabet, Inc. - Class A (b) | 690700 | 60940461 |
|  Alphabet, Inc. - Class C (b) | 668060 | 59276964 |
|  Meta Platforms, Inc. - Class A (b) | 84944 | 10222161 |
|  |  | 130439586 |
| **Internet & Direct Marketing Retail—6.9%** |  |  |
|  Amazon.com, Inc. (b) | 1267980 | 106510320 |
|  MercadoLibre, Inc. (a) (b) | 45075 | 38144268 |
|  |  | 144654588 |
| **IT Services—9.2%** |  |  |
|  Adyen NV (b) | 17681 | 24467256 |
|  MasterCard, Inc. - Class A | 172830 | 60098176 |
|  Snowflake, Inc. - Class A (b) | 183243 | 26302700 |
|  Visa, Inc. - Class A (a) | 391114 | 81257845 |
|  |  | 192125977 |
| **Life Sciences Tools & Services—2.7%** |  |  |
|  Danaher Corp. | 171025 | 45393456 |
|  Thermo Fisher Scientific, Inc. | 18873 | 10393172 |
|  |  | 55786628 |
| **Media—0.8%** |  |  |
|  Trade Desk, Inc. (The) - Class A (a) (b) | 365687 | 16393748 |
| **Personal Products—1.9%** |  |  |
|  Estee Lauder Cos., Inc. (The) - Class A | 156933 | 38936647 |
| **Pharmaceuticals—5.3%** |  |  |
|  Eli Lilly and Co. | 201042 | 73549205 |
|  Novo Nordisk A/S (ADR) | 269540 | 36479544 |
|  |  | 110028749 |
| **Road & Rail—1.8%** |  |  |
|  Uber Technologies, Inc. (b) | 1534251 | 37942027 |
| **Semiconductors & Semiconductor Equipment—4.8%** |  |  |
|  Broadcom, Inc. | 56383 | 31525427 |
|  NVIDIA Corp. | 472991 | 69122904 |
|  |  | 100648331 |
| **Software—12.2%** |  |  |
|  Adobe, Inc. (b) | 156203 | 52566996 |
|  Atlassian Corp. - Class A (a) (b) | 171719 | 22096801 |
|  Crowdstrike Holdings, Inc. - Class A (b) | 128343 | 13513235 |
|  Microsoft Corp. | 541598 | 129886032 |
|  Salesforce.com, Inc. (b) | 274555 | 36403247 |
|  |  | 254466311 |
| **Specialty Retail—3.9%** |  |  |
|  Home Depot, Inc. (The) | 106766 | 33723109 |
|  O'Reilly Automotive, Inc. (b) | 22714 | 19171297 |
|  TJX Cos., Inc. (The) | 361551 | 28779460 |
|  |  | 81673866 |
| **Technology Hardware, Storage & Peripherals—7.4%** | **Technology Hardware, Storage & Peripherals—7.4%** |  |
|  Apple, Inc. | 1184118 | 153852452 |
| **Textiles, Apparel & Luxury Goods—5.5%** |  |  |
|  Lululemon Athletica, Inc. (b) | 95155 | 30485759 |
|  LVMH Moet Hennessy Louis Vuitton SE | 90449 | 65706215 |
|  NIKE, Inc. - Class B | 153371 | 17945941 |
|  |  | 114137915 |
| **Wireless Telecommunication Services—1.0%** | **Wireless Telecommunication Services—1.0%** |  |
|  T-Mobile U.S., Inc. (b) | 141212 | 19769680 |
|  Total Common Stocks <br>(Cost $1,461,235,726) |  | 1999408402 |

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*See accompanying notes to financial statements.* 

**BHFTII-5** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Preferred Stock—0.7%** 

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| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal**<br> **Amount\*** | **Value** | **Value** |
| **Automobiles—0.7%** | | | |
|  Dr. Ing HC F Porsche AG (b) <br>(Cost $11,136,205) | 137718 | $| 13972349 |
| **Short-Term Investment—3.3%** | **Short-Term Investment—3.3%** | **Short-Term Investment—3.3%** | **Short-Term Investment—3.3%** |
| **Repurchase Agreement—3.3%** |  |  |  |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $69,332,265; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $70,704,830. | 69318401 |  | 69318401 |
|  Total Short-Term Investments <br>(Cost $69,318,401) |  |  | 69318401 |
| **Securities Lending Reinvestments (c)—8.2%** | **Securities Lending Reinvestments (c)—8.2%** | **Securities Lending Reinvestments (c)—8.2%** | **Securities Lending Reinvestments (c)—8.2%** |
| **Certificates of Deposit—4.1%** |  |  |  |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (d) | 3000000 |  | 3004052 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (d) | 5000000 |  | 5000000 |
|  Bank of Nova Scotia<br>4.550%, SOFR + 0.250%, 02/17/23 (d) | 2000000 |  | 1999910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.710%, FEDEFF PRV + 0.380%, 01/06/23 (d) | 5000000 |  | 5000089 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.770%, FEDEFF PRV + 0.440%, 01/09/23 (d) | 2000000 |  | 2000081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (d) | 4000000 |  | 4001681 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (d) | 5000000 |  | 4999990 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (d) | 4000000 |  | 4001392 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (d) | 5000000 |  | 5000331 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (d) | 6000000 |  | 6002297 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (d) | 4000000 |  | 4000284 |
|  Cooperatieve Rabobank UA<br>4.670%, SOFR + 0.370%, 03/20/23 (d) | 3000000 |  | 3000000 |
|  Credit Industriel et Commercial<br>4.730%, SOFR + 0.430%, 01/06/23 (d) | 4000000 |  | 4000112 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (d) | 2000000 |  | 2000601 |
|  Natixis S.A. (New York)<br>4.800%, SOFR + 0.500%, 02/13/23 (d) | 6000000 |  | 6002367 |
|  Nordea Bank Abp (NY)<br>4.760%, SOFR + 0.460%, 02/13/23 (d) | 2000000 |  | 2000342 |
|  Royal Bank of Canada<br>4.890%, FEDEFF PRV + 0.560%, 04/10/23 (d) | 2000000 |  | 2001152 |
|  Sumitomo Mitsui Trust Bank, Ltd. |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.840%, SOFR + 0.540%, 01/10/23 (d) | 4000000 |  | 4000312 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (d) | 2000000 |  | 2000556 |
|  Svenska Handelsbanken AB<br>4.900%, SOFR + 0.600%, 04/12/23 (d) | 3000000 |  | 3002037 |
| **Certificates of Deposit—(Continued)** |  |  |  |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (d) | 3000000 |  | 2999869 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (d) | 7000000 |  | 6999230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (d) | 2000000 |  | 2000682 |
|  |  |  | 85017367 |
| **Commercial Paper—0.2%** |  |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (d) | 3000000 |  | 3004086 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (d) | 1000000 |  | 1000988 |
|  |  |  | 4005074 |
| **Repurchase Agreements—2.8%** |  |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $14,381,115; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $14,661,895. | 14374407 |  | 14374407 |
|  Cantor Fitzgerald & Co. <br>Repurchase Agreement dated 12/30/22 at 4.300%, due on 01/03/23 with a maturity value of $100,048; collateralized by U.S. Government Agency Obligations with rates ranging from 1.500% - 7.500%, maturity dates ranging from 01/01/23 - 07/20/71, and an aggregate market value of $102,000. | 100000 |  | 100000 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $6,150,158; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $6,120,001. | 6000000 |  | 6000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $10,004,800; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $10,238,692. | 10000000 |  | 10000000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $9,725,302; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $9,934,592. | 9717140 |  | 9717140 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.570%, due on 02/03/23 with a maturity value of $5,022,215; collateralized by various Common Stock with an aggregate market value of $5,556,261. | 5000000 |  | 5000000 |

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*See accompanying notes to financial statements.* 

**BHFTII-6** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (c)—(Continued)** 

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal**<br> **Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | | |
|  Societe Generale Repurchase<br>Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $11,425,462; collateralized by various Common Stock with an aggregate market value of $12,712,013. | 11419866 | $11419866 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $1,000,489; collateralized by various Common Stock with an aggregate market value of $1,109,428. | 1000000 | 1000000 |
|  |  | 57611413 |
| **Mutual Funds — 1.1%** |  |  |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (e) | 10000000 | 10000000 |
|  HSBC U.S. Government Money Market Fund, Class I 4.130% (e) | 5000000 | 5000000 |
|  Morgan Stanley Liquidity Funds Government Portfolio, Institutional Shares 4.110% (e) | 5000000 | 5000000 |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (e) | 1000000 | 1000000 |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (e) | 2000000 | 2000000 |
|  |  | 23000000 |
|  Total Securities Lending Reinvestments <br>(Cost $169,611,413) |  | 169633854 |
|  Total Investments—108.2% <br>(Cost $1,711,301,745) |  | 2252333006 |
|  Other assets and liabilities (net)—(8.2)% |  | (170558729) |
| **Net Assets—100.0%** |  | $2081774277 |

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\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $166,404,771 and the collateral received consisted of cash in the amount of $169,611,413. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.

(b) Non-income producing security.

(c) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(d) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(e) The rate shown represents the annualized seven-day yield as of December 31, 2022.

**Glossary of Abbreviations** 

Index Abbreviations

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(FEDEFF PRV)— Effective Federal Funds Rate <br> (SOFR)— Secured Overnight Financing Rate

Other Abbreviations

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(ADR)— American Depositary Receipt

**Fair Value Hierarchy** 

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

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

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

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

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

*See accompanying notes to financial statements.* 

**BHFTII-7** 

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**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $18910842 | $— | $— | $18910842 |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | 62565709 |  |  | 62565709 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology | 28584599 |  |  | 28584599 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 36259898 |  |  | 36259898 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Equipment & Services | 26968004 |  |  | 26968004 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment | 57723872 |  |  | 57723872 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Real Estate Investment Trusts | 29987724 |  |  | 29987724 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food & Staples Retailing | 60566594 |  |  | 60566594 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 91534362 |  |  | 91534362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 60597453 |  |  | 60597453 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 74852840 |  |  | 74852840 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interactive Media & Services | 130439586 |  |  | 130439586 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | 144654588 |  |  | 144654588 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 167658721 | 24467256 |  | 192125977 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 55786628 |  |  | 55786628 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media | 16393748 |  |  | 16393748 |
| &nbsp;&nbsp;&nbsp;&nbsp; Personal Products | 38936647 |  |  | 38936647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 110028749 |  |  | 110028749 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 37942027 |  |  | 37942027 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 100648331 |  |  | 100648331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 254466311 |  |  | 254466311 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 81673866 |  |  | 81673866 |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology Hardware, Storage & Peripherals | 153852452 |  |  | 153852452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Textiles, Apparel & Luxury Goods | 48431700 | 65706215 |  | 114137915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wireless Telecommunication Services | 19769680 |  |  | 19769680 |
|  Total Common Stocks | 1909234931 | 90173471 |  | 1999408402 |
|  Total Preferred Stock\* |  | 13972349 |  | 13972349 |
|  Total Short-Term Investment\* |  | 69318401 |  | 69318401 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 85017367 |  | 85017367 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 4005074 |  | 4005074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 57611413 |  | 57611413 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 23000000 |  |  | 23000000 |
|  Total Securities Lending Reinvestments | 23000000 | 146633854 |  | 169633854 |
|  Total Investments | $1932234931 | $320098075 | $— | $2252333006 |
|  Collateral for Securities Loaned (Liability) | $— | $(169611413) | $— | $(169611413) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $2252333006 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 16662 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 623927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 646731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 7868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 2253628194 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 169611413 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 699226 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 975267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 170893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 195964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 201154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 171853917 |
|  **Net Assets** | $2081774277 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1608359155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 473415122 |
|  **Net Assets** | $2081774277 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1300238437 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 771630647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 9905193 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 139096246 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 86623521 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1082217 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 8.91 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 9.15 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $1,711,301,745.

(b) Includes securities loaned at value of $166,404,771.

---

| | |
|:---|:---|
| **Statement of Operations**<br> **Year Ended December 31, 2022** | **Statement of Operations**<br> **Year Ended December 31, 2022** |
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $12309733 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 201223 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 505397 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 13016353 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 15007959 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 102700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 130629 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 2310415 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 18916 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 85665 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 21803 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 26014 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 17805108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (1986476) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (29971) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 15788661 |
|  **Net Investment Loss** | (2772308) |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (66497045) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (12552) |
|  Net realized gain (loss) | (66509597) |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (1252244856) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (5653) |
|  Net change in unrealized appreciation (depreciation) | (1252250509) |
|  Net realized and unrealized gain (loss) | (1318760106) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(1321532414) |

---

(a) Net of foreign withholding taxes of $208,935.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
| | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $(2772308) | $(12109513) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (66509597) | 595147662 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (1252250509) | (35698794) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (1321532414) | 547339355 |
|  **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (366175729) | (445542496) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | (224849934) | (269720419) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | (2956177) | (4090038) |
|  **From Return of Capital** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (260512) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | (159967) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | (2103) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (594404422) | (719352953) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 622794342 | 165443889 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (1293142494) | (6569709) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 3374916771 | 3381486480 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $2081774277 | $3374916771 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 9227530 | $135251837 | 3374302 | $72777431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 37699202 | 366436241 | 24174851 | 445542496 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (7888307) | (101656550) | (21812875) | (464676384) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 39038425 | $400031528 | 5736278 | $53643543 |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 8202850 | $103968558 | 4894870 | $104092844 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 24246757 | 225009901 | 15101927 | 269720419 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (8805623) | (107294154) | (12533029) | (261274873) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 23643984 | $221684305 | 7463768 | $112538390 |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 77917 | $949398 | 93617 | $2048836 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 310418 | 2958280 | 224851 | 4090038 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (219981) | (2829169) | (322188) | (6876918) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 168354 | $1078509 | (3720) | $(738044) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $622794342 |  | $165443889 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $20.85 | $22.63 | $16.32 | $14.50 | $16.85 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.00)(b) | (0.06) | (0.01) | 0.04 | 0.07 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (7.97) | 3.29 | 8.49 | 4.38 | 0.35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (7.97) | 3.23 | 8.48 | 4.42 | 0.42 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.04) | (0.08) | (0.06) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.53) | (5.01) | (2.13) | (2.52) | (2.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(c) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.53) | (5.01) | (2.17) | (2.60) | (2.77) |
|  **Net Asset Value, End of Period** | $9.35 | $20.85 | $22.63 | $16.32 | $14.50 |
|  **Total Return (%)** (d) | (38.87) | 17.17 | 56.80 | 32.83 | 0.35 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.62 | 0.61 | 0.62 | 0.62 | 0.62 |
|  Net ratio of expenses to average net assets (%) (e) | 0.54 | 0.53 | 0.54 | 0.54 | 0.54 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.02) | (0.26) | (0.04) | 0.25 | 0.44 |
|  Portfolio turnover rate (%) | 19 | 23 | 34 | 25 | 26 |
|  Net assets, end of period (in millions) | $1300.2 | $2086.0 | $2134.3 | $1864.7 | $1625.6 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $20.17 | $22.09 | $15.98 | $14.24 | $16.59 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.03) | (0.11) | (0.05) | 0.00 (b) | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (7.70) | 3.20 | 8.29 | 4.29 | 0.35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (7.73) | 3.09 | 8.24 | 4.29 | 0.38 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.00)(f) | (0.03) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.53) | (5.01) | (2.13) | (2.52) | (2.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(c) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.53) | (5.01) | (2.13) | (2.55) | (2.73) |
|  **Net Asset Value, End of Period** | $8.91 | $20.17 | $22.09 | $15.98 | $14.24 |
|  **Total Return (%)** (d) | (39.02) | 16.91 | 56.37 | 32.49 | 0.11 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.87 | 0.86 | 0.87 | 0.87 | 0.87 |
|  Net ratio of expenses to average net assets (%) (e) | 0.79 | 0.78 | 0.79 | 0.79 | 0.79 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.27) | (0.51) | (0.29) | 0.00 (g) | 0.19 |
|  Portfolio turnover rate (%) | 19 | 23 | 34 | 25 | 26 |
|  Net assets, end of period (in millions) | $771.6 | $1270.2 | $1226.6 | $921.5 | $788.7 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $20.55 | $22.40 | $16.17 | $14.39 | $16.74 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.02) | (0.09) | (0.04) | 0.02 | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (7.85) | 3.25 | 8.42 | 4.33 | 0.35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (7.87) | 3.16 | 8.38 | 4.35 | 0.40 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.02) | (0.05) | (0.04) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.53) | (5.01) | (2.13) | (2.52) | (2.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(c) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.53) | (5.01) | (2.15) | (2.57) | (2.75) |
|  **Net Asset Value, End of Period** | $9.15 | $20.55 | $22.40 | $16.17 | $14.39 |
|  **Total Return (%)** (d) | (38.98) | 17.00 | 56.60 | 32.56 | 0.22 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.77 | 0.76 | 0.77 | 0.77 | 0.77 |
|  Net ratio of expenses to average net assets (%) (e) | 0.69 | 0.68 | 0.69 | 0.69 | 0.69 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.17) | (0.41) | (0.19) | 0.10 | 0.28 |
|  Portfolio turnover rate (%) | 19 | 23 | 34 | 25 | 26 |
|  Net assets, end of period (in millions) | $9.9 | $18.8 | $20.6 | $14.4 | $12.3 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Net investment income (loss) was less than $0.01.

(c) Distributions from return of capital were less than $0.01.

(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(e) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

(f) Distributions from net investment income were less than $0.01.

(g) Ratio of net investment income (loss) to average net assets was less than 0.01%.

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $69,318,401. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $57,611,413. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

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

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

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

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

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $468883913 | $0 | $512081069 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management**<br> **Fees earned by<br>Brighthouse**<br> **Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average daily net assets** |
| $15007959 | 0.700% | Of the first $200 million |
|  | 0.650% | Of the next $300 million |
|  | 0.600% | Of the next $1.5 billion |
|  | 0.550% | On amounts in excess of $2 billion |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Jennison Associates LLC is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average daily net assets** |
| 0.100% | Of the first $200 million |
| 0.050% | On the next $800 million |
| 0.100% | On the next $1 billion |
| 0.080% | On amounts in excess of $2 billion |

---

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees** - The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1712669877 |
|  Gross unrealized appreciation | 733981164 |
|  Gross unrealized (depreciation) | (194318035) |
|  Net unrealized appreciation (depreciation) | $539663129 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Return of Capital** | **Return of Capital** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $— | $— | $593981840 | $719352953 | $422582 | $— | $594404422 | $719352953 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $— | $– $| 539651681 | $(66040593) | $473611088 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $63,015,896 and accumulated long-term capital losses of $3,024,697.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Jennison Growth Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Jennison Growth Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Jennison Growth Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-20** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

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**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Jennison Growth Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Jennison Associates LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-year period ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Russell 1000 Growth Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Jennison Growth Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Universe and the Sub-advised Expense Group at the Portfolio's current size.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Managed By Loomis, Sayles & Company, L.P.** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Loomis Sayles Small Cap Core Portfolio returned -15.06%, -15.28%, and -15.19%, respectively. The Portfolio's benchmark, the Russell 2000 Index¹, returned -20.44%.

**MARKET ENVIRONMENT/CONDITIONS** 

The bullish tone supporting equity markets over the prior few years changed quite dramatically in early 2022 resulting in one of the weakest performing U.S. stock markets on record. No equity investment style or capitalization range was spared, and even most bond market indices produced losses for the calendar year. Heightened inflation and the Federal Reserve's response via higher interest rates, a land war in Europe, and disrupted supply chains were the primary factors behind a decline in market valuations, which more than offset continued (albeit slower) growth in U.S. corporate profits. While the small cap Russell 2000 Index return of -20.4% was slightly behind the large cap Russell 1000 Index return of -19.1%, most notable was a second consecutive year where value stocks widely outperformed growth stocks across small caps. Importantly, quality was a successful theme for most of the year, as higher returning business models with greater revenue and earnings visibility far outperformed more speculative and money losing segments of the market. These factors had meaningful impacts on sector performance within the Russell 2000 Index as segments of the market with higher valuations, such as biotechnology and software, lagged the overall market while Energy was the top performing index sector for the year with a return that topped 50%.

**PORTFOLIO REVIEW/PERIOD END POSITIONING** 

The Loomis Sayles Small Cap Core Portfolio outperformed the Russell 2000 Index (the "Index") during the twelve months ended December 31, 2022. The Portfolio's relative return benefited from its quality orientation as higher quality stocks significantly outperformed lower quality stocks during the year. In such an environment, stock selection metrics accounted for the entirety of the excess return versus the benchmark index. In addition to favorable market conditions, very strong stock selection in the Information Technology ("IT"), Health Care and Industrials sectors also aided relative return. Offsetting these positives was trailing stock selection in the Consumer Staples and Financials sectors and a few top portfolio performers in 2021 ceding a share of their prior gains during 2022. The Portfolio significantly increased its weight to Energy over the year based on strong industry fundamentals and more shareholder friendly capital allocation decisions by company management. However, the underweight to the sector in early 2022 had a meaningful negative impact to relative return as oil prices increased significantly. After starting the year behind the Index after the first quarter, the Portfolio rallied throughout the year to outperform the Index for the calendar year period.

The two largest contributors to performance at the individual security level were energy companies Weatherford International and ChampionX Corp. Weatherford provides equipment and services to the oil and natural gas exploration and production industry. The business is weighted toward geographies outside of North America, including regions where exploration and production activity is expected to demonstrate healthy growth. The stock was a new addition during 2022 after the company's new management had progressed in profitably reorienting the business, as well as further improvement in the recapitalized balance sheet after re-emergence from bankruptcy. The rally in the shares off a deeply discounted valuation reflected a "rediscovery" of the company by investors after years of being shunned due to sub-par financial results and poor sentiment toward prior management. ChampionX provides a variety of products and solutions to help energy companies develop oil and gas properties and to enhance production. Most of the price appreciation was in the final quarter of the year after strong earnings were reported in October, and management directly addressed concerns which had previously weighed upon the stock. Finally, strong free cash flow generation has resulted in a conservative balance sheet, leaving the company with options to increase return of capital to shareholders through dividend payments or share repurchase.

The Portfolio's largest detractors included Triumph Financial and Pathward Financial. Triumph, a specialty bank focusing on providing factor financing to trucking fleets had early success building out a payments network for clients, but initial costs to roll-out the service, combined with a weaker trucking market late in 2022 impacted both

earnings and sentiment toward the stock. We reduced our holding during the fourth quarter. Pathward Financial (formerly Meta Financial) provides a number of financial products and services along with providing prepaid cards. Several factors contributed to a reduced stock price, including a downsizing of the tax refund lending business, weaker lending trends in certain niche commercial markets, and lower lending yields. On the reduced company earnings guidance, we eliminated the position following disappointing news during the third quarter of the year.

During the period, we added new stocks with attractive investment potential and eliminated holdings where the valuation has exceeded our target levels or where fundamentals no longer fit our investment thesis. New positions included energy equipment and services provider Weatherford International; Northern Oil and Gas, an independent energy company engaged in the exploration and production of oil and natural gas properties; and Crocs, a designer and distributor of casual lifestyle footwear for women, men, and children. Positions eliminated included financial services provider Pathward Financial; Dana Incorporated, a tier-one supplier of drive-train components to the auto and off-highway vehicle markets due to elevated debt levels; and Rexford Industrial Realty, a real estate investment trust that manages warehouses and light manufacturing facilities in California on valuation concerns and market capitalization considerations.

We manage the Portfolio in a bottom-up fashion focusing on selecting stocks that fit our investment philosophy and process. The economic backdrop is a consideration in the analysis of each security's

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Managed By Loomis, Sayles & Company, L.P.** 

**Portfolio Manager Commentary\*—(Continued)** 

investment potential, but we do not make portfolio or sector changes using a macro lens. Sector weight changes during the period ending December 31, 2022, reflected both our repositioning within the Portfolio as well as market impacts. As a result of individual stock selection, our weights in the Consumer Discretionary, IT and Financials sectors were reduced while weights to the Energy and Health Care sectors increased.

At the end of 2022, the Portfolio continued to be positioned in the larger capitalization range of the small cap universe and focused on those companies featuring higher quality business models and balance sheets, with good earnings visibility and continued growth potential. Through the stock selection process, the Portfolio was broadly diversified across all economic sectors, with a relative overweight to the Industrials and IT sectors while underweight to the Real Estate, Financials and Consumer Discretionary sectors. The cash position was minimal and was used for transactional purposes.

**Mark Burns** 

**John Slavik** 

**Joe Gatz** 

**Jeff Schwatz** 

Portfolio Managers

*Loomis, Sayles & Company, L.P.* 

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

<sup>1</sup> The Russell 2000 Index is an unmanaged measure of performance of the 2,000 smallest companies in the Russell 3000 Index.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 INDEX**![LOGO](g400324g86n54.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Loomis Sayles Small Cap Core Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -15.06 | 5.32 | 9.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -15.28 | 5.06 | 9.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -15.19 | 5.16 | 9.72 |
| &nbsp;&nbsp;&nbsp;**Russell 2000 Index** | -20.44 | 4.13 | 9.01 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Rambus, Inc.** | **1.6** |
| **Herc Holdings, Inc.** | **1.5** |
| **Weatherford International plc** | **1.5** |
| **Option Care Health, Inc.** | **1.2** |
| **Ameris Bancorp** | **1.1** |
| **Albany International Corp. - Class A** | **1.1** |
| **Supernus Pharmaceuticals, Inc.** | **1.1** |
| **Wintrust Financial Corp.** | **1.1** |
| **Northern Oil and Gas, Inc.** | **1.1** |
| **McGrath RentCorp** | **1.1** |

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**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Industrials** | **21.8** |
| **Health Care** | **15.9** |
| **Information Technology** | **15.2** |
| **Financials** | **14.6** |
| **Consumer Discretionary** | **8.2** |
| **Energy** | **7.7** |
| **Consumer Staples** | **3.9** |
| **Materials** | **3.2** |
| **Communication Services** | **2.8** |
| **Real Estate** | **2.2** |

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**BHFTII-3** 

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**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Loomis Sayles Small Cap Core Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,**<br>**2022** |
|  Class A (a) | Actual | 0.89% | $1000.00 | $1089.30 | $4.69 |
|  | Hypothetical\* | 0.89% | $1000.00 | $1020.72 | $4.53 |
|  Class B (a) | Actual | 1.14% | $1000.00 | $1087.90 | $6.00 |
|  | Hypothetical\* | 1.14% | $1000.00 | $1019.46 | $5.80 |
|  Class E (a) | Actual | 1.04% | $1000.00 | $1088.40 | $5.47 |
|  | Hypothetical\* | 1.04% | $1000.00 | $1019.96 | $5.30 |

---

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

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

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

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—97.5% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—0.9%** | **Aerospace & Defense—0.9%** | **Aerospace & Defense—0.9%** |
|  Hexcel Corp. | 15522 | $913470 |
|  Leonardo DRS, Inc. (a) | 176387 | 2254226 |
|  |  | 3167696 |
| **Air Freight & Logistics—0.2%** |  |  |
|  Hub Group, Inc. - Class A (a) | 8749 | 695458 |
| **Auto Components—1.1%** |  |  |
|  Dorman Products, Inc. (a) | 11995 | 970036 |
|  Gentherm, Inc. (a) | 15767 | 1029427 |
|  LCI Industries | 10801 | 998553 |
|  Patrick Industries, Inc. | 12467 | 755500 |
|  |  | 3753516 |
| **Banks—10.0%** |  |  |
|  Ameris Bancorp | 85019 | 4007796 |
|  Atlantic Union Bankshares Corp. | 75173 | 2641579 |
|  Bancorp, Inc. (The) (a) | 38672 | 1097511 |
|  Cadence Bank | 102092 | 2517589 |
|  CVB Financial Corp. | 106316 | 2737637 |
|  Home BancShares, Inc. | 140402 | 3199762 |
|  Lakeland Financial Corp. | 13879 | 1012751 |
|  OceanFirst Financial Corp. | 148501 | 3155646 |
|  Pinnacle Financial Partners, Inc. | 37265 | 2735251 |
|  Popular, Inc. | 41850 | 2775492 |
|  Prosperity Bancshares, Inc. | 33202 | 2413121 |
|  SouthState Corp. | 28515 | 2177405 |
|  Triumph Bancorp, Inc. (a) | 19623 | 958976 |
|  Wintrust Financial Corp. | 45830 | 3873552 |
|  |  | 35304068 |
| **Beverages—0.2%** |  |  |
|  Primo Water Corp. | 55321 | 859688 |
| **Biotechnology—2.7%** |  |  |
|  Halozyme Therapeutics, Inc. (a) | 35345 | 2011130 |
|  Inhibrx, Inc. (a) (b) | 25548 | 629503 |
|  Insmed, Inc. (a) | 31324 | 625854 |
|  PTC Therapeutics, Inc. (a) | 17745 | 677327 |
|  United Therapeutics Corp. (a) | 12725 | 3538695 |
|  Vericel Corp. (a) | 25092 | 660923 |
|  Xencor, Inc. (a) | 26863 | 699512 |
|  Xenon Pharmaceuticals, Inc. (a) | 17032 | 671572 |
|  |  | 9514516 |
| **Building Products—2.4%** |  |  |
|  Advanced Drainage Systems, Inc. | 4724 | 387226 |
|  Griffon Corp. | 50320 | 1800953 |
|  Janus International Group Inc. (a) | 146201 | 1391833 |
|  Quanex Building Products Corp. | 92117 | 2181331 |
|  UFP Industries, Inc. | 34713 | 2751005 |
|  |  | 8512348 |
| **Capital Markets—1.5%** |  |  |
|  Focus Financial Partners, Inc. - Class A (a) | 21616 | $805629 |
|  Hamilton Lane, Inc. - Class A | 15874 | 1014031 |
|  PJT Partners, Inc. - Class A | 18180 | 1339684 |
|  Stifel Financial Corp. | 34846 | 2033961 |
|  |  | 5193305 |
| **Chemicals—2.9%** |  |  |
|  Ashland, Inc. | 20758 | 2232108 |
|  Cabot Corp. | 40908 | 2734291 |
|  LSB Industries, Inc. (a) | 177057 | 2354858 |
|  Valvoline, Inc. | 86267 | 2816617 |
|  |  | 10137874 |
| **Commercial Services & Supplies—2.5%** |  |  |
|  Casella Waste Systems, Inc. - Class A (a) | 23337 | 1850857 |
|  Clean Harbors, Inc. (a) | 28913 | 3299552 |
|  Driven Brands Holdings, Inc. (a) (b) | 30718 | 838909 |
|  IAA, Inc. (a) | 46005 | 1840200 |
|  VSE Corp. | 22816 | 1069614 |
|  |  | 8899132 |
| **Communications Equipment—1.0%** |  |  |
|  Calix, Inc. (a) | 20815 | 1424371 |
|  Viavi Solutions, Inc. (a) | 192881 | 2027179 |
|  |  | 3451550 |
| **Construction & Engineering—3.2%** |  |  |
|  AECOM | 37545 | 3188697 |
|  Arcosa, Inc. | 55471 | 3014294 |
|  MDU Resources Group, Inc. | 109120 | 3310701 |
|  WillScot Mobile Mini Holdings Corp. (a) | 41857 | 1890680 |
|  |  | 11404372 |
| **Diversified Financial Services—0.4%** |  |  |
|  Cannae Holdings, Inc. (a) | 77064 | 1591372 |
| **Electric Utilities—0.6%** |  |  |
|  ALLETE, Inc. | 33428 | 2156440 |
| **Electrical Equipment—0.5%** |  |  |
|  Atkore, Inc. (a) | 15299 | 1735213 |
| **Electronic Equipment, Instruments & Components—5.5%** |  |  |
|  Advanced Energy Industries, Inc. | 11034 | 946497 |
|  Itron, Inc. (a) | 10738 | 543880 |
|  Kimball Electronics, Inc. (a) | 73011 | 1649318 |
|  Littelfuse, Inc. | 6391 | 1407298 |
|  Methode Electronics, Inc. | 54112 | 2400949 |
|  National Instruments Corp. | 52697 | 1944519 |
|  Novanta, Inc. (a) | 8888 | 1207613 |
|  Rogers Corp. (a) | 12249 | 1461796 |
|  TD SYNNEX Corp. | 28526 | 2701697 |
|  TTM Technologies, Inc. (a) | 167994 | 2533350 |
|  Vontier Corp. | 137600 | 2659808 |
|  |  | 19456725 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Energy Equipment & Services—4.0%** | | | |
|  Cactus, Inc. - Class A | 29013 | $| 1458193 |
|  ChampionX Corp. | 95421 |  | 2766255 |
|  Expro Group Holdings NV (a) | 103236 |  | 1871669 |
|  Noble Corp. plc (a) | 73678 |  | 2778397 |
|  Weatherford International plc (a) | 105017 |  | 5347466 |
|  |  |  | 14221980 |
| **Entertainment—0.5%** |  |  |  |
|  Liberty Braves Group - Class C (a) | 56744 |  | 1828859 |
| **Equity Real Estate Investment Trusts—1.7%** |  |  |  |
|  Agree Realty Corp. (b) | 34862 |  | 2472762 |
|  Postal Realty Trust, Inc. - Class A | 66005 |  | 959052 |
|  STAG Industrial, Inc. | 79648 |  | 2573427 |
|  |  |  | 6005241 |
| **Food & Staples Retailing—0.5%** |  |  |  |
|  Andersons, Inc. (The) | 55634 |  | 1946634 |
| **Food Products—1.4%** |  |  |  |
|  Hostess Brands, Inc. (a) | 27886 |  | 625762 |
|  J & J Snack Foods Corp. | 8603 |  | 1287955 |
|  Nomad Foods, Ltd. (a) | 69309 |  | 1194887 |
|  Simply Good Foods Co. (The) (a) | 35100 |  | 1334853 |
|  Sovos Brands, Inc. (a) | 47449 |  | 681842 |
|  |  |  | 5125299 |
| **Health Care Equipment & Supplies—5.5%** |  |  |  |
|  AtriCure, Inc. (a) | 22672 |  | 1006183 |
|  Axonics, Inc. (a) | 25142 |  | 1572129 |
|  CONMED Corp. | 25043 |  | 2219812 |
|  Cutera, Inc. (a) | 15492 |  | 685056 |
|  Embecta Corp. (b) | 37405 |  | 945973 |
|  Inmode, Ltd. (a) | 71591 |  | 2555799 |
|  Inspire Medical Systems, Inc. (a) | 7256 |  | 1827641 |
|  Lantheus Holdings, Inc. (a) | 48565 |  | 2474872 |
|  LivaNova plc (a) | 9065 |  | 503470 |
|  Merit Medical Systems, Inc. (a) | 20922 |  | 1477512 |
|  NuVasive, Inc. (a) | 20131 |  | 830202 |
|  PROCEPT BioRobotics Corp. (a) | 14903 |  | 619071 |
|  STAAR Surgical Co. (a) | 8499 |  | 412542 |
|  UFP Technologies, Inc. (a) | 21270 |  | 2507520 |
|  |  |  | 19637782 |
| **Health Care Providers & Services—3.4%** |  |  |  |
|  Acadia Healthcare Co., Inc. (a) | 15560 |  | 1280899 |
|  Alignment Healthcare, Inc. (a) (b) | 47619 |  | 559999 |
|  AMN Healthcare Services, Inc. (a) | 16202 |  | 1665890 |
|  Ensign Group, Inc. (The) | 13214 |  | 1250177 |
|  ModivCare, Inc. (a) | 6252 |  | 560992 |
|  Option Care Health, Inc. (a) | 139875 |  | 4208839 |
|  Tenet Healthcare Corp. (a) | 52552 |  | 2564012 |
|  |  |  | 12090808 |
| **Health Care Technology—1.2%** |  |  |  |
|  Allscripts Healthcare Solutions, Inc. (a) | 180180 |  | 3178375 |
|  Evolent Health, Inc.- Class A (a) | 33859 |  | 950761 |
|  |  |  | 4129136 |
| **Hotels, Restaurants & Leisure—2.0%** |  |  |  |
|  Churchill Downs, Inc. | 10903 |  | 2305221 |
|  Life Time Group Holdings, Inc. (a) (b) | 51843 |  | 620042 |
|  Marriott Vacations Worldwide Corp. | 17598 |  | 2368515 |
|  Papa John's International, Inc. | 9092 |  | 748363 |
|  Texas Roadhouse, Inc. | 11363 |  | 1033465 |
|  |  |  | 7075606 |
| **Household Durables—1.5%** |  |  |  |
|  Installed Building Products, Inc. | 8043 |  | 688481 |
|  KB Home | 62670 |  | 1996039 |
|  Skyline Champion Corp. (a) | 48478 |  | 2497102 |
|  |  |  | 5181622 |
| **Household Products—0.3%** |  |  |  |
|  Spectrum Brands Holdings, Inc. | 17056 |  | 1039051 |
| **Independent Power and Renewable Electricity Producers—0.5%** | **Independent Power and Renewable Electricity Producers—0.5%** | **Independent Power and Renewable Electricity Producers—0.5%** | **Independent Power and Renewable Electricity Producers—0.5%** |
|  NextEra Energy Partners L.P. (b) | 27164 |  | 1903925 |
| **Insurance—1.2%** |  |  |  |
|  BRP Group, Inc. - Class A (a) | 37578 |  | 944711 |
|  Employers Holdings, Inc. | 58245 |  | 2512107 |
|  Kinsale Capital Group, Inc. | 3663 |  | 957948 |
|  |  |  | 4414766 |
| **Interactive Media & Services—0.5%** |  |  |  |
|  Shutterstock, Inc. | 14183 |  | 747728 |
|  TripAdvisor, Inc. (a) | 54378 |  | 977716 |
|  |  |  | 1725444 |
| **IT Services—3.6%** |  |  |  |
|  Concentrix Corp. | 22364 |  | 2977990 |
|  CSG Systems International, Inc. | 38705 |  | 2213926 |
|  Euronet Worldwide, Inc. (a) (b) | 25039 |  | 2363181 |
|  EVERTEC, Inc. | 31921 |  | 1033602 |
|  Grid Dynamics Holdings, Inc. (a) | 38654 |  | 433698 |
|  International Money Express, Inc. (a) | 86763 |  | 2114414 |
|  WNS Holdings, Ltd. (ADR) (a) | 20235 |  | 1618598 |
|  |  |  | 12755409 |
| **Leisure Products—1.2%** |  |  |  |
|  Brunswick Corp. | 32606 |  | 2350240 |
|  Malibu Boats, Inc. - Class A (a) | 14556 |  | 775835 |
|  Topgolf Callaway Brands Corp. (a) (b) | 53148 |  | 1049673 |
|  |  |  | 4175748 |
| **Life Sciences Tools & Services—1.0%** |  |  |  |
|  Charles River Laboratories International, Inc. (a) | 11416 |  | 2487547 |
|  Medpace Holdings, Inc. (a) | 4276 |  | 908265 |
|  |  |  | 3395812 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Machinery—4.1%** | | |
|  Albany International Corp. - Class A | 40320 | $3975149 |
|  Altra Industrial Motion Corp. | 42341 | 2529874 |
|  Columbus McKinnon Corp. | 45830 | 1488100 |
|  Helios Technologies, Inc. | 14820 | 806801 |
|  Kadant, Inc. | 18511 | 3288109 |
|  RBC Bearings, Inc. (a) | 6611 | 1384013 |
|  Wabash National Corp. | 52848 | 1194365 |
|  |  | 14666411 |
| **Marine—0.6%** |  |  |
|  Genco Shipping & Trading, Ltd. | 146709 | 2253450 |
| **Media—1.4%** |  |  |
|  Gray Television, Inc. | 107130 | 1198785 |
|  John Wiley & Sons, Inc. - Class A | 31060 | 1244263 |
|  Scholastic Corp. | 37706 | 1487879 |
|  Thryv Holdings, Inc. (a) | 50029 | 950551 |
|  |  | 4881478 |
| **Metals & Mining—0.4%** |  |  |
|  Arconic Corp. (a) | 60241 | 1274700 |
| **Multi-Utilities—0.6%** |  |  |
|  Black Hills Corp. | 27720 | 1949825 |
| **Oil, Gas & Consumable Fuels—3.7%** |  |  |
|  Antero Resources Corp. (a) | 80414 | 2492030 |
|  California Resources Corp. | 56132 | 2442303 |
|  Delek U.S. Holdings, Inc. | 56331 | 1520937 |
|  Denbury, Inc. (a) | 7138 | 621149 |
|  Magnolia Oil & Gas Corp. - Class A | 36723 | 861154 |
|  Northern Oil and Gas, Inc. | 123161 | 3795822 |
|  Southwestern Energy Co. (a) | 204472 | 1196161 |
|  |  | 12929556 |
| **Personal Products—1.4%** |  |  |
|  BellRing Brands, Inc. (a) | 125099 | 3207538 |
|  elf Beauty, Inc. (a) | 17770 | 982681 |
|  Inter Parfums, Inc. | 7727 | 745810 |
|  |  | 4936029 |
| **Pharmaceuticals—2.2%** |  |  |
|  Jazz Pharmaceuticals plc (a) | 8147 | 1297898 |
|  Pacira BioSciences, Inc. (a) | 63495 | 2451542 |
|  Supernus Pharmaceuticals, Inc. (a) | 109331 | 3899837 |
|  |  | 7649277 |
| **Professional Services—2.7%** |  |  |
|  FTI Consulting, Inc. (a) | 6062 | 962645 |
|  Huron Consulting Group, Inc. (a) | 11131 | 808111 |
|  ICF International, Inc. | 5894 | 583801 |
|  Insperity, Inc. | 22112 | 2511923 |
|  KBR, Inc. | 31841 | 1681205 |
|  Korn Ferry | 34238 | 1733127 |
| **Professional Services—(Continued)** |  |  |
|  Science Applications International Corp. | 11334 | 1257281 |
|  |  | 9538093 |
| **Real Estate Management & Development—0.5%** | **Real Estate Management & Development—0.5%** |  |
|  Colliers International Group, Inc. | 20297 | 1868136 |
| **Road & Rail—0.2%** |  |  |
|  Marten Transport, Ltd. | 34450 | 681421 |
| **Semiconductors & Semiconductor Equipment—3.0%** | **Semiconductors & Semiconductor Equipment—3.0%** |  |
|  MACOM Technology Solutions Holdings, Inc. (a) | 22709 | 1430213 |
|  MaxLinear, Inc. (a) | 23996 | 814664 |
|  Rambus, Inc. (a) | 155765 | 5579502 |
|  Silicon Laboratories, Inc. (a) | 9061 | 1229306 |
|  Tower Semiconductor, Ltd. (U.S. Listed Shares) (a) | 32584 | 1407629 |
|  |  | 10461314 |
| **Software—1.1%** |  |  |
|  Box, Inc. - Class A (a) | 32490 | 1011414 |
|  Envestnet, Inc. (a) (b) | 16107 | 993802 |
|  Model N, Inc. (a) | 12641 | 512719 |
|  Tenable Holdings, Inc. (a) | 23506 | 896754 |
|  Varonis Systems, Inc. (a) | 23107 | 553181 |
|  |  | 3967870 |
| **Specialty Retail—1.0%** |  |  |
|  Boot Barn Holdings, Inc. (a) | 37708 | 2357504 |
|  Urban Outfitters, Inc. (a) | 54187 | 1292360 |
|  |  | 3649864 |
| **Technology Hardware, Storage & Peripherals—1.0%** | **Technology Hardware, Storage & Peripherals—1.0%** |  |
|  Pure Storage, Inc. - Class A (a) | 50611 | 1354350 |
|  Super Micro Computer, Inc. (a) | 28476 | 2337880 |
|  |  | 3692230 |
| **Textiles, Apparel & Luxury Goods—1.5%** |  |  |
|  Columbia Sportswear Co. | 9703 | 849789 |
|  Crocs, Inc. (a) | 33770 | 3661681 |
|  Oxford Industries, Inc. | 8341 | 777214 |
|  |  | 5288684 |
| **Thrifts & Mortgage Finance—1.4%** |  |  |
|  Federal Agricultural Mortgage Corp. - Class C | 22831 | 2573282 |
|  WSFS Financial Corp. | 53803 | 2439428 |
|  |  | 5012710 |
| **Trading Companies & Distributors—4.4%** |  |  |
|  Alta Equipment Group, Inc. | 105054 | 1385662 |
|  Applied Industrial Technologies, Inc. | 9180 | 1156955 |
|  Custom Truck One Source, Inc. (a) | 148425 | 938046 |
|  Herc Holdings, Inc. | 40924 | 5384371 |
|  McGrath RentCorp | 38331 | 3784803 |
|  MRC Global, Inc. (a) | 171565 | 1986723 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal**<br> **Amount\*** | **Value** |
| **Trading Companies & Distributors—(Continued)** | **Trading Companies & Distributors—(Continued)** | |
|  SiteOne Landscape Supply, Inc. (a) | 7092 | $832033 |
|  |  | 15468593 |
| **Water Utilities—0.3%** |  |  |
|  Pure Cycle Corp. (a) | 101388 | 1062546 |
| **Wireless Telecommunication Services—0.4%** | **Wireless Telecommunication Services—0.4%** |  |
|  United States Cellular Corp. (a) | 70061 | 1460772 |
|  Total Common Stocks <br>(Cost $272,110,563) |  | 345179354 |
| **Short-Term Investment—2.6%** | **Short-Term Investment—2.6%** | **Short-Term Investment—2.6%** |
| **Repurchase Agreement—2.6%** | **Repurchase Agreement—2.6%** | **Repurchase Agreement—2.6%** |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $9,172,524; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $9,354,168. | 9170690 | 9170690 |
|  Total Short-Term Investments <br>(Cost $9,170,690) |  | 9170690 |
| **Securities Lending Reinvestments (c)—2.3%** | **Securities Lending Reinvestments (c)—2.3%** | **Securities Lending Reinvestments (c)—2.3%** |
| **Repurchase Agreements—1.6%** | **Repurchase Agreements—1.6%** | **Repurchase Agreements—1.6%** |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $1,500,710; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $1,530,000. | 1500000 | 1500000 |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $1,700,793; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 -01/20/52, and an aggregate market value of $1,734,000. | 1700000 | 1700000 |
|  Goldman Sachs & Co. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $1,017,642; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% -7.625%, maturity dates ranging from 01/24/23 - 11/15/52, and an aggregate market value of $1,037,505. | 1017161 | 1017161 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $1,000,865; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% -4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $1,088,829. | 1000000 | 1000000 |
| **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** |
|  Societe Generale <br>Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $400,344; collateralized by various Common Stock with an aggregate market value of $445,277. | 400000 | 400000 |
|  |  | 5617161 |
| **Mutual Funds—0.7%** |  |  |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (d) | 500000 | 500000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (d) | 600000 | 600000 |
|  HSBC U.S. Government Money Market Fund, Class I 4.130% (d) | 1000000 | 1000000 |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (d) | 600000 | 600000 |
|  |  | 2700000 |
|  Total Securities Lending Reinvestments <br>(Cost $8,317,161) |  | 8317161 |
|  Total Investments—102.4% <br>(Cost $289,598,414) |  | 362667205 |
|  Other assets and liabilities (net)—(2.4)% |  | (8638775) |
| **Net Assets—100.0%** |  | $354028430 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted. 

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was
$8,063,222 and the collateral received consisted of cash in the amount of $8,317,161. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.

(c) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(d) The rate shown represents the annualized seven-day yield as of December 31,
2022. **Glossary of Abbreviations** 

Other Abbreviations

------

(ADR)— American Depositary Receipt

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $345179354 | $— | $— | $345179354 |
|  Total Short-Term Investment\* |  | 9170690 |  | 9170690 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 5617161 |  | 5617161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 2700000 |  |  | 2700000 |
|  Total Securities Lending Reinvestments | 2700000 | 5617161 |  | 8317161 |
|  Total Investments | $347879354 | $14787851 | $— | $362667205 |
|  Collateral for Securities Loaned (Liability) | $— | $(8317161) | $— | $(8317161) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $362667205 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 498957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 1300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 270228 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 1304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 363438994 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 1710 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 8317161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 237187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 329468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 249601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 25129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 98010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 9410564 |
|  **Net Assets** | $354028430 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $263203142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 90825288 |
|  **Net Assets** | $354028430 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $230629244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 104803464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 18595722 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 1110628 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 559871 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 94892 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $207.66 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 187.19 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 195.97 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $289,598,414.

(b) Includes securities loaned at value of $8,063,222.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $4395315 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 51990 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 35514 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 4482819 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 3402123 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 28806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 47325 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 288889 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 30057 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 47333 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 3310 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 10706 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 3959556 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (320514) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (18253) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 3620789 |
|  **Net Investment Income** | 862030 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
|  Net realized gain on investments | 17484843 |
|  Net change in unrealized depreciation on investments | (87385843) |
|  Net realized and unrealized gain (loss) | (69901000) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(69038970) |

---

(a) Net of foreign withholding taxes of $11,114.

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $862030 | $(338764) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 17484843 | 73904848 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (87385843) | 16744469 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (69038970) | 90310553 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (45698470) | (17629188) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (23625478) | (9441745) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (3933608) | (1619585) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (73257556) | (28690518) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 37150364 | (33173631) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (105146162) | 28446404 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 459174592 | 430728188 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $354028430 | $459174592 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 15899 | $3692921 | 21312 | $6327387 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 235583 | 45698470 | 59774 | 17629188 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (90476) | (20948391) | (110421) | (32939256) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 161006 | $28443000 | (29335) | $(8982681) |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 13851 | $3071966 | 19308 | $5369504 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 134926 | 23625478 | 34616 | 9441745 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (92258) | (19440894) | (126911) | (35080899) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 56519 | $7256550 | (72987) | $(20269650) |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1620 | $360610 | 2235 | $652826 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 21470 | 3933608 | 5737 | 1619585 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (12566) | (2843404) | (21650) | (6193711) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 10524 | $1450814 | (13678) | $(3921300) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $37150364 |  | $(33173631) |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $307.10 | $267.73 | $262.79 | $233.39 | $290.82 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.73 | 0.04 | 0.54 | 0.60 | 0.72 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (50.49) | 57.96 | 24.46 | 56.79 | (27.59) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (49.76) | 58.00 | 25.00 | 57.39 | (26.87) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | (0.25) | (0.32) | (0.08) | (0.06) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (49.68) | (18.38) | (19.74) | (27.91) | (30.50) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (49.68) | (18.63) | (20.06) | (27.99) | (30.56) |
|  **Net Asset Value, End of Period** | $207.66 | $307.10 | $267.73 | $262.79 | $233.39 |
|  **Total Return (%)** (b) | (15.06) | 21.95 | 12.07 | 25.54 | (11.07) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.96 | 0.96 | 0.98 | 0.97 | 0.96 |
|  Net ratio of expenses to average net assets (%) (c) | 0.88 | 0.87 | 0.90 | 0.90 | 0.88 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.31 | 0.01 | 0.24 | 0.23 | 0.25 |
|  Portfolio turnover rate (%) | 31 | 29 | 35 | 31 | 30 |
|  Net assets, end of period (in millions) | $230.6 | $291.6 | $262.1 | $254.6 | $223.9 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $283.63 | $248.88 | $246.17 | $220.60 | $277.03 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.13 | (0.64) | (0.02) | (0.04) | (0.00)(d) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (46.89) | 53.77 | 22.47 | 53.52 | (25.93) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (46.76) | 53.13 | 22.45 | 53.48 | (25.93) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (49.68) | (18.38) | (19.74) | (27.91) | (30.50) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (49.68) | (18.38) | (19.74) | (27.91) | (30.50) |
|  **Net Asset Value, End of Period** | $187.19 | $283.63 | $248.88 | $246.17 | $220.60 |
|  **Total Return (%)** (b) | (15.28) | 21.64 | 11.79 | 25.23 | (11.30) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.21 | 1.21 | 1.23 | 1.22 | 1.21 |
|  Net ratio of expenses to average net assets (%) (c) | 1.13 | 1.12 | 1.15 | 1.15 | 1.13 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.06 | (0.23) | (0.01) | (0.02) | (0.00)(e) |
|  Portfolio turnover rate (%) | 31 | 29 | 35 | 31 | 30 |
|  Net assets, end of period (in millions) | $104.8 | $142.8 | $143.4 | $141.8 | $131.1 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $293.73 | $256.93 | $253.13 | $225.95 | $282.79 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.35 | (0.38) | 0.19 | 0.21 | 0.27 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (48.43) | 55.56 | 23.35 | 54.88 | (26.61) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (48.08) | 55.18 | 23.54 | 55.09 | (26.34) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (49.68) | (18.38) | (19.74) | (27.91) | (30.50) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (49.68) | (18.38) | (19.74) | (27.91) | (30.50) |
|  **Net Asset Value, End of Period** | $195.97 | $293.73 | $256.93 | $253.13 | $225.95 |
|  **Total Return (%)** (b) | (15.19) | 21.77 | 11.90 | 25.35 | (11.21) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.11 | 1.11 | 1.13 | 1.12 | 1.11 |
|  Net ratio of expenses to average net assets (%) (c) | 1.03 | 1.02 | 1.05 | 1.05 | 1.03 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.16 | (0.13) | 0.09 | 0.08 | 0.10 |
|  Portfolio turnover rate (%) | 31 | 29 | 35 | 31 | 30 |
|  Net assets, end of period (in millions) | $18.6 | $24.8 | $25.2 | $24.8 | $22.8 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

(d) Net investment income (loss) was less than $0.01.

(e) Ratio of net investment income (loss) to average net assets was less than 0.01%.

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $1,710 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $9,170,690. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $5,617,161. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

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

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $116408193 | $0 | $153282178 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse**<br> **Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $3402123 | 0.900% | Of the first $500 million |
|  | 0.850% | On amounts in excess of $500 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Loomis, Sayles & Company, L.P. is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers** - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.130% | Of the first $25 million |
| 0.080% | On the next $75 million |
| 0.050% | On the next $100 million |
| 0.100% | On the next $300 million |
| 0.050% | On amounts in excess of $500 million |

---

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

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

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $289904055 |
|  Gross unrealized appreciation | 88448094 |
|  Gross unrealized (depreciation) | (15684944) |
|  Net unrealized appreciation (depreciation) | $72763150 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $2325566 | $239357 | $70931990 | $28451161 | $73257556 | $28690518 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $608951 | $17605483 | $72763152 | $– $| 90977586 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Loomis Sayles Small Cap Core Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Loomis Sayles Small Cap Core Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Core Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Loomis Sayles Small Cap Core Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Loomis, Sayles & Company, L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of one of its Performance Universes for the one- and three-year periods ended June 30, 2022 and underperformed the median of the same Performance Universe for the five-year period ended June 30, 2022. The Board also considered that the Portfolio outperformed the median of its other Performance Universe for the one- and five-year periods ended June 30, 2022 and underperformed the median of the same Performance Universe for the three-year period ended June 30, 2022. The Board further considered that the Portfolio outperformed the average of its Morningstar Category for the one- and three-year periods ended June 30, 2022 and underperformed the average of its Morningstar Category for the five-year period ended June 30, 2022. The Board further considered that the Portfolio outperformed the average of a different, but still comparable, Morningstar Category for the one- and five-

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Core Portfolio** 

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

year periods ended June 30, 2022 and underperformed the average of the same Morningstar Category for the three-year period ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median and above the Expense Universe median and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the average of the Sub-advised Expense Group and above the average of the Sub-advised Expense Universe, each at the Portfolio's current size.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Managed by Loomis, Sayles & Company, L.P.** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Loomis Sayles Small Cap Growth Portfolio returned -22.96%, -23.10%, and -23.07%, respectively. The Portfolio's benchmark, the Russell 2000 Growth Index¹, returned -26.36%.

**MARKET ENVIRONMENT / CONDITIONS** 

2022 can be characterized as historic given the magnitude and persistence of volatility that took place during the year and extended beyond small cap stocks. Correlations between asset classes in 2022 were more than two standard deviations above the mean and was the highest on record since 1980. 2022 represented the 10<sup>th</sup> largest decline on record for small caps and marked the 3<sup>rd</sup> worst calendar year since 1979 for the Russell 2000 Growth Index (only 2002 and 2008 being worse). 2022 was also the only year on record where the Russell 2000 Index posted negative returns in each of the first three quarters. During 2022, the Russell 2000 Index experienced its highest number of down days than in any year with exception of 1984 and 2002 where the magnitude of the average down day was the fourth worst since 1979.When taking into account both the number of down days and the magnitude of declines on down days, 2022 represented the second worst year for the Russell 2000 Index on record, behind only 2008. Finally, when averaged over the full-year, a number of sentiment indicators reached all-time lows in 2022, including the Michigan Consumer Sentiment (since 1952), NFIB Small Business Economic Outlook (since 1974) and the AAII Bull-Bear Spread (since 1987).

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Loomis Sayles Small Cap Growth Portfolio outperformed the Russell 2000 Growth Index (the "Index") during the twelve months ended December 31, 2022. Stock selection in Health Care, Financials and Information Technology ("IT") sectors contributed positively to relative performance. An underweight position to the Energy and Materials sectors, as well as poor stock selection in the Materials sector were detractors to relative performance.

The largest contributors to performance on the individual security level were e.l.f. Beauty, Halozyme Therapeutics and Weatherford International. e.l.f Beauty is a multi-brand beauty company that makes prestige quality products accessible to everyone. Its creative marketing effort is paying dividends and allowing it to gain a bigger share at a time when beauty demand is coming back as the economy reopens. Halozyme Therapeutics is a biotech company focused on developing and commercializing oncology therapeutics. The company performed well as their partnered commercial products continued to grow well. Weatherford is a diversified energy services company with the majority of its revenue coming internationally. New management has successfully refocused the company on profitable product lines and services. This has led to better execution, which has drawn investor attention, and help close the valuation gap with its peers.

The Portfolio's largest detractors included Kornit Digital, MaxLinear and Rapid7. Kornit Digital serves the growing e-commerce sector with its digital printing equipment and supplies allowing customers to print on demand and have more flexibility with its inventory. The stock saw a sharp sell-off due to a rotation away from high-growth, high-valuation stocks. Also, investors feared that Kornit's massive growth during the COVID-19 pandemic period likely pulled forward demand, thus potentially slowing future growth. MaxLinear is a semiconductor company focused on the Broadband, Connectivity, and Infrastructure end markets. Despite several strong quarters in a row, the stock has been under pressure all year due to the semiconductor group sell-off triggered by continued supply chain challenges and fears of demand beginning to weaken. In addition, the announcement of the intent to acquire Silicon Motion in early May was met with broad skepticism over the strategic fit of the deal. Rapid7 focuses on vulnerability management, incident detection and response, and cloud security. The stock had been weak due to valuation compression across the broader software space and a lackluster financial report in the first quarter of 2022, with results that were only in line with expectations, and Rapid 7 didn't raise its guidance on several key metrics.

During the period, we added new stocks with attractive investment potential and eliminated holdings where fundamentals no longer fit our investment thesis, market cap grew beyond our ceiling, or our stop loss was triggered. New positions included Applied Industrial Technologies, Box and Hexcel. Applied Industrial Technologies is a leading industrial distributor with two businesses: service center-based distribution and fluid power and flow control. We expect faster growth in the fluid power segment of the business as well as margins to continue to rise as this business segment has structurally higher margins. Lastly, the company expects to acquire small distributors to aid in its growth profile and give it a strong market position. Box, Inc. is a software vendor of Enterprise Content Management solutions for high-end use cases that prioritize security, governance, and scalability. Hexcel is a manufacturer of composite materials which it provides to the Aerospace market, in addition to various Industrial markets. Demand for key aircraft post-COVID is beginning to accelerate, which we believe should lead to outsize revenue growth and operating leverage for Hexcel.

Positions eliminated during the period included CryoPort, Wingstop and Fox Factory Holdings. CryoPort is a logistics company in the cell and gene therapy market. Given the high optimism about these new therapies and the high growth involved, CryoPort's valuation increased to a point where the stock became vulnerable to any slight change in expectations. While the company's projections did not change, the quarterly sequence of them did, which caused the market concern and the stock to fall and trigger our stop loss. Wingstop is a fast growing fast casual dining concept centered on chicken wings. The company was a big beneficiary during the COVID-19 pandemic period but began to face tougher comparisons. The stock was sold due to the extreme correction in its stock price combined with a valuation that did not lend support. Fox Factory Holding is leading manufacturer of performance shocks and other accessories for the

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Managed by Loomis, Sayles & Company, L.P.** 

**Portfolio Manager Commentary\*—(Continued)** 

bike and truck market. The business thrived during the pandemic as consumers purchased an increased number of recreational-type vehicles and bikes. Despite this, we had to sell the stock after it underperformed due to supply chain issues impacting revenue growth and very tough comparables.

We manage the Portfolio in a bottom-up fashion focusing on selecting stocks that fit our investment philosophy and process. The economic backdrop is a consideration in the analysis of each security's investment potential, but we do not make portfolio or sector changes using a macro lens. Sector weight changes during the period ending December 31, 2022, reflected both our repositioning within the Portfolio as well as market impacts. As a result of individual stock selection, our weights in the Consumer Discretionary, IT and Communication Services sectors were reduced while weights in the Energy, Consumer Staples and Health Care sectors increased.

At the end of 2022, the Portfolio continued to be focused on those higher quality small cap companies we think have the potential to grow into larger entities. Through the stock selection process, the Portfolio was diversified, with a relative overweight to the Health Care, Financials, Industrials and Consumer Staples sectors while underweight to the Energy, Materials and Real Estate sectors. The cash position was minimal and was used for transactional purposes.

**Mark Burns** 

**John Slavik** 

Portfolio Managers

*Loomis, Sayles & Company, L.P.* 

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

<sup>1</sup> The Russell 2000 Growth Index is an unmanaged measure of performance of those Russell 2000 companies (small capitalization companies) that have higher price-to book ratios and higher forecasted growth values.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 GROWTH INDEX**![LOGO](g400324g01c89.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Loomis Sayles Small Cap Growth Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -22.96 | 7.75 | 11.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -23.10 | 7.49 | 11.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -23.07 | 7.60 | 11.45 |
| &nbsp;&nbsp;&nbsp;**Russell 2000 Growth Index** | -26.36 | 3.51 | 9.20 |

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Halozyme Therapeutics, Inc.** | **2.2** |
| **WillScot Mobile Mini Holdings Corp.** | **2.0** |
| **Casella Waste Systems, Inc. - Class A** | **2.0** |
| **Inspire Medical Systems, Inc.** | **2.0** |
| **Rambus, Inc.** | **1.9** |
| **KBR, Inc.** | **1.8** |
| **Option Care Health, Inc.** | **1.8** |
| **WNS Holdings, Ltd.(ADR)** | **1.7** |
| **Axonics, Inc.** | **1.7** |
| **Albany International Corp. - Class A** | **1.6** |

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**Top Sectors** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Health Care** | **26.6** |
| **Industrials** | **19.9** |
| **Information Technology** | **19.0** |
| **Consumer Discretionary** | **10.7** |
| **Financials** | **8.6** |
| **Consumer Staples** | **6.4** |
| **Energy** | **5.7** |
| **Communication Services** | **0.8** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Loomis Sayles Small Cap Growth Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.87% | $1000.00 | $1083.30 | $4.57 |
|  | Hypothetical\* | 0.87% | $1000.00 | $1020.82 | $4.43 |
|  Class B (a) | Actual | 1.12% | $1000.00 | $1082.90 | $5.88 |
|  | Hypothetical\* | 1.12% | $1000.00 | $1019.56 | $5.70 |
|  Class E (a) | Actual | 1.02% | $1000.00 | $1082.90 | $5.36 |
|  | Hypothetical\* | 1.02% | $1000.00 | $1020.06 | $5.19 |

---

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

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

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

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—97.7% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.0%** | | |
|  Hexcel Corp. | 60734 | $3574196 |
| **Air Freight & Logistics—0.8%** |  |  |
|  Hub Group, Inc. - Class A (a) | 34242 | 2721897 |
| **Auto Components—3.0%** |  |  |
|  Dorman Products, Inc. (a) | 46928 | 3795067 |
|  Gentherm, Inc. (a) | 61693 | 4027936 |
|  Patrick Industries, Inc. | 48780 | 2956068 |
|  |  | 10779071 |
| **Banks—3.2%** |  |  |
|  Ameris Bancorp | 73482 | 3463941 |
|  Bancorp, Inc. (The) (a) | 151307 | 4294093 |
|  Lakeland Financial Corp. | 54302 | 3962417 |
|  |  | 11720451 |
| **Beverages—0.9%** |  |  |
|  Primo Water Corp. | 216462 | 3363820 |
| **Biotechnology—6.4%** |  |  |
|  Halozyme Therapeutics, Inc. (a) | 138291 | 7868758 |
|  Inhibrx, Inc. (a) | 99967 | 2463187 |
|  Insmed, Inc. (a) | 122572 | 2448989 |
|  PTC Therapeutics, Inc. (a) | 69428 | 2650067 |
|  Vericel Corp. (a) | 98184 | 2586166 |
|  Xencor, Inc. (a) | 105108 | 2737012 |
|  Xenon Pharmaceuticals, Inc. (a) | 66890 | 2637473 |
|  |  | 23391652 |
| **Building Products—0.4%** |  |  |
|  Advanced Drainage Systems, Inc. | 18472 | 1514150 |
| **Capital Markets—3.4%** |  |  |
|  Focus Financial Partners, Inc. - Class A (a) | 84577 | 3152185 |
|  Hamilton Lane, Inc. - Class A | 62109 | 3967523 |
|  PJT Partners, Inc. - Class A | 71129 | 5241496 |
|  |  | 12361204 |
| **Commercial Services & Supplies—2.9%** |  |  |
|  Casella Waste Systems, Inc. - Class A (a) | 91311 | 7241876 |
|  Driven Brands Holdings, Inc. (a) | 120185 | 3282252 |
|  |  | 10524128 |
| **Communications Equipment—1.5%** |  |  |
|  Calix, Inc. (a) | 81445 | 5573281 |
| **Construction & Engineering—2.6%** |  |  |
|  Arcosa, Inc. | 40826 | 2218485 |
|  WillScot Mobile Mini Holdings Corp. (a) | 163771 | 7397536 |
|  |  | 9616021 |
| **Electronic Equipment, Instruments & Components—2.9%** |  |  |
|  Advanced Energy Industries, Inc. | 43176 | 3703637 |
| **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** |
|  Itron, Inc. (a) | 42009 | 2127756 |
|  Novanta, Inc. (a) | 34776 | 4725015 |
|  |  | 10556408 |
| **Energy Equipment & Services—4.1%** |  |  |
|  Cactus, Inc. - Class A | 113520 | 5705515 |
|  Noble Corp. plc (a) | 97267 | 3667939 |
|  Weatherford International plc (a) | 109418 | 5571564 |
|  |  | 14945018 |
| **Food Products—2.8%** |  |  |
|  Hostess Brands, Inc. (a) | 109116 | 2448563 |
|  Simply Good Foods Co. (The) (a) | 137339 | 5223002 |
|  Sovos Brands, Inc. (a) | 185667 | 2668035 |
|  |  | 10339600 |
| **Health Care Equipment & Supplies—10.5%** |  |  |
|  AtriCure, Inc. (a) | 88715 | 3937172 |
|  Axonics, Inc. (a) | 98373 | 6151264 |
|  CONMED Corp. | 39640 | 3513689 |
|  Cutera, Inc. (a) | 60616 | 2680439 |
|  Inspire Medical Systems, Inc. (a) | 28390 | 7150873 |
|  LivaNova plc (a) | 35469 | 1969948 |
|  Merit Medical Systems, Inc. (a) | 81860 | 5780953 |
|  NuVasive, Inc. (a) | 78761 | 3248104 |
|  PROCEPT BioRobotics Corp. (a) (b) | 58196 | 2417462 |
|  STAAR Surgical Co. (a) | 33253 | 1614101 |
|  |  | 38464005 |
| **Health Care Providers & Services—5.7%** |  |  |
|  Acadia Healthcare Co., Inc. (a) | 60880 | 5011642 |
|  Alignment Healthcare, Inc. (a) | 187334 | 2203048 |
|  Ensign Group, Inc. (The) | 51706 | 4891905 |
|  ModivCare, Inc. (a) | 24458 | 2194616 |
|  Option Care Health, Inc. (a) | 215824 | 6494144 |
|  |  | 20795355 |
| **Health Care Technology—1.0%** |  |  |
|  Evolent Health, Inc. - Class A (a) | 133191 | 3740003 |
| **Hotels, Restaurants & Leisure—2.6%** |  |  |
|  Life Time Group Holdings, Inc. (a) (b) | 202866 | 2426277 |
|  Papa John's International, Inc. | 35572 | 2927931 |
|  Texas Roadhouse, Inc. | 44465 | 4044092 |
|  |  | 9398300 |
| **Household Durables—0.7%** |  |  |
|  Installed Building Products, Inc. | 31471 | 2693918 |
| **Insurance—2.0%** |  |  |
|  BRP Group, Inc. - Class A (a) | 147034 | 3696435 |
|  Kinsale Capital Group, Inc. | 14330 | 3747581 |
|  |  | 7444016 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **<br>Shares** | **Value** |
| **Interactive Media & Services—0.8%** | | |
|  Shutterstock, Inc. | 55497 | $2925802 |
| **IT Services—3.3%** |  |  |
|  EVERTEC, Inc. | 124893 | 4044036 |
|  Grid Dynamics Holdings, Inc. (a) | 151447 | 1699235 |
|  WNS Holdings, Ltd. (ADR) (a) | 79177 | 6333368 |
|  |  | 12076639 |
| **Leisure Products—2.0%** |  |  |
|  Malibu Boats, Inc. - Class A (a) (b) | 56951 | 3035489 |
|  Topgolf Callaway Brands Corp. (a) (b) | 209187 | 4131443 |
|  |  | 7166932 |
| **Life Sciences Tools & Services—1.0%** |  |  |
|  Medpace Holdings, Inc. (a) | 16732 | 3554044 |
| **Machinery—3.9%** |  |  |
|  Albany International Corp. - Class A | 58785 | 5795613 |
|  Helios Technologies, Inc. | 57989 | 3156921 |
|  RBC Bearings, Inc. (a) | 25861 | 5414001 |
|  |  | 14366535 |
| **Oil, Gas & Consumable Fuels—1.6%** |  |  |
|  Denbury, Inc. (a) | 27831 | 2421854 |
|  Magnolia Oil & Gas Corp. - Class A | 144462 | 3387634 |
|  |  | 5809488 |
| **Personal Products—2.6%** |  |  |
|  BellRing Brands, Inc. (a) | 112119 | 2874731 |
|  elf Beauty, Inc. (a) | 69904 | 3865691 |
|  Inter Parfums, Inc. | 30230 | 2917800 |
|  |  | 9658222 |
| **Pharmaceuticals—2.0%** |  |  |
|  Pacira BioSciences, Inc. (a) | 76926 | 2970113 |
|  Supernus Pharmaceuticals, Inc. (a) | 117087 | 4176493 |
|  |  | 7146606 |
| **Professional Services—4.3%** |  |  |
|  FTI Consulting, Inc. (a) | 23714 | 3765783 |
|  Huron Consulting Group, Inc. (a) | 43552 | 3161875 |
|  ICF International, Inc. | 23055 | 2283598 |
|  KBR, Inc. | 124580 | 6577824 |
|  |  | 15789080 |
| **Road & Rail—0.7%** |  |  |
|  Marten Transport, Ltd. | 135092 | 2672120 |
| **Semiconductors & Semiconductor Equipment—5.6%** |  |  |
|  MACOM Technology Solutions Holdings, Inc. (a) | 88853 | 5595962 |
|  MaxLinear, Inc. (a) | 93890 | 3187566 |
|  Rambus, Inc. (a) | 194809 | 6978058 |
| **Semiconductors & Semiconductor Equipment—(Continued)** |  |  |
|  Silicon Laboratories, Inc. (a) | 35444 | 4808687 |
|  |  | 20570273 |
| **Software—4.3%** |  |  |
|  Box, Inc. - Class A (a) | 127126 | 3957432 |
|  Envestnet, Inc. (a) | 63027 | 3888766 |
|  Model N, Inc. (a) | 49365 | 2002245 |
|  Tenable Holdings, Inc. (a) | 91969 | 3508617 |
|  Varonis Systems, Inc. (a) | 90413 | 2164487 |
|  |  | 15521547 |
| **Specialty Retail—0.7%** |  |  |
|  Boot Barn Holdings, Inc. (a) | 43058 | 2691986 |
| **Technology Hardware, Storage & Peripherals—1.5%** |  |  |
|  Pure Storage, Inc. - Class A (a) | 198029 | 5299256 |
| **Textiles, Apparel & Luxury Goods—1.7%** |  |  |
|  Columbia Sportswear Co. | 37962 | 3324712 |
|  Oxford Industries, Inc. | 32630 | 3040463 |
|  |  | 6365175 |
| **Trading Companies & Distributors—3.3%** |  |  |
|  Applied Industrial Technologies, Inc. | 35918 | 4526746 |
|  McGrath RentCorp | 41891 | 4136317 |
|  SiteOne Landscape Supply, Inc. (a) | 27748 | 3255395 |
|  |  | 11918458 |
|  Total Common Stocks <br>(Cost $318,938,514) |  | 357048657 |
| **Short-Term Investment—1.9%** |  |  |
| **Repurchase Agreement — 1.9%** |  |  |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $6,974,436; collateralized by U.S. Treasury Bond at 2.375%, maturing 05/15/51, with a market value of $7,112,546. | 6973041 | 6973041 |
|  Total Short-Term Investments <br>(Cost $6,973,041) |  | 6973041 |
| **Securities Lending Reinvestments (c)—0.6%** | **Securities Lending Reinvestments (c)—0.6%** |  |
| **Repurchase Agreements—0.5%** |  |  |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $131,988; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $134,564. | 131926 | 131926 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (c)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | | |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $400,187; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $408,000. | 400000 | $400000 |
|  Cantor Fitzgerald & Co. <br>Repurchase Agreement dated 12/30/22 at 4.300%, due on 01/03/23 with a maturity value of $400,191; collateralized by U.S. Government Agency Obligations with rates ranging from 1.500% - 7.500%, maturity dates ranging from 01/01/23 - 07/20/71, and an aggregate market value of $408,000. | 400000 | 400000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $50,042; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $51,119. | 50000 | 50000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $100,047; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $102,181. | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $350,166; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.250%, maturity dates ranging from 12/31/23 - 02/15/30, and an aggregate market value of $357,000. | 350000 | 350000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $300,258; collateralized by various Common Stock with an aggregate market value of $333,958. | 300000 | 300000 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $300,147; collateralized by various Common Stock with an aggregate market value of $332,828. | 300000 | 300000 |
|  |  | 2031926 |
| **Mutual Funds—0.1%** |  |  |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (d) | 100000 | 100000 |
|  STIT-Government & Agency Portfolio, Institutional Class<br>4.220% (d) | 100000 | 100000 |
|  |  | 200000 |
|  Total Securities Lending Reinvestments <br>(Cost $2,231,926) |  | 2231926 |
|  Total Investments— 100.2% <br>(Cost $328,143,481) |  | 366253624 |
|  Other assets and liabilities (net)—(0.2)% |  | (759868) |
| **Net Assets—100.0%** |  | $365493756 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $2,170,684 and the collateral received consisted of cash in the amount of $2,231,926. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.

(c) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(d) The rate shown represents the annualized seven-day yield as of December 31, 2022.

**Glossary of Abbreviations** 

Other Abbreviations

------

(ADR)— American Depositary Receipt

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

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

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

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

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

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

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $357048657 | $— | $— | $357048657 |
|  Total Short-Term Investment\* |  | 6973041 |  | 6973041 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 2031926 |  | 2031926 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 200000 |  |  | 200000 |
|  Total Securities Lending Reinvestments | 200000 | 2031926 |  | 2231926 |
|  Total Investments | $357248657 | $9004967 | $— | $366253624 |
|  Collateral for Securities Loaned (Liability) | $— | $(2231926) | $— | $(2231926) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $366253624 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 1950883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 1529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 90251 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 1315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 368297602 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 2231926 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 70570 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 254655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 11294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 82850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 2803846 |
|  **Net Assets** | $365493756 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $328802047 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 36691709 |
|  **Net Assets** | $365493756 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $311336442 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 48693713 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 5463601 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 32804119 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 6112852 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 633934 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.49 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 7.97 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 8.62 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $328,143,481.

(b) Includes securities loaned at value of $2,170,684.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $1615983 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 48577 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 26390 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 1690950 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 3562587 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 29431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 38946 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 133490 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 9008 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 28652 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 3423 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 10771 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 3917315 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (375843) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (17069) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 3524403 |
|  **Net Investment Loss** | (1833453) |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized loss on investments | (1101671) |
| Net change in unrealized depreciation on investments | (111073732) |
|  Net realized and unrealized gain (loss) | (112175403) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(114008856) |

---

(a) Net of foreign withholding taxes of $9,551.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $(1833453) | $(3040974) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (1101671) | 91572230 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (111073732) | (38891104) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (114008856) | 49640152 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (74072817) | (37984758) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (13229310) | (7367362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (1375802) | (807091) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Return of Capital** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (149537) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (26707) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (2777) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (88856950) | (46159211) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 74461907 | (20168714) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (128403899) | (16687773) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 493897655 | 510585428 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $365493756 | $493897655 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1414103 | $18099302 | 527040 | $8715883 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 8580619 | 74222354 | 2430247 | 37984758 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2731996) | (26967419) | (3717418) | (63225882) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 7262726 | $65354237 | (760131) | $(16525241) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 292625 | $2945876 | 236012 | $3510657 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 1823386 | 13256017 | 534642 | 7367362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (856180) | (7817104) | (950468) | (14088049) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1259831 | $8384789 | (179814) | $(3210030) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 22367 | $221029 | 13353 | $205773 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 175392 | 1378579 | 55394 | 807091 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (85815) | (876727) | (93122) | (1446307) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 111944 | $722881 | (24375) | $(433443) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $74461907 |  | $(20168714) |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $16.30 | $16.31 | $14.03 | $13.19 | $14.98 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.05) | (0.09) | (0.07) | (0.06) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.96) | 1.65 | 4.16 | 3.41 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (4.01) | 1.56 | 4.09 | 3.35 | 0.42 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.80) | (1.57) | (1.81) | (2.51) | (2.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.80) | (1.57) | (1.81) | (2.51) | (2.21) |
|  **Net Asset Value, End of Period** | $9.49 | $16.30 | $16.31 | $14.03 | $13.19 |
|  **Total Return (%)** (c) | (22.96) | 10.00 | 34.34 | 26.88 | 0.55 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.95 | 0.95 | 0.97 | 0.98 | 0.96 |
|  Net ratio of expenses to average net assets (%) (d) | 0.86 | 0.86 | 0.88 | 0.89 | 0.88 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.43) | (0.57) | (0.52) | (0.45) | (0.09) |
|  Portfolio turnover rate (%) | 33 | 44 | 57 | 47 | 44 |
|  Net assets, end of period (in millions) | $311.3 | $416.3 | $428.9 | $283.4 | $240.4 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $14.35 | $14.57 | $12.76 | $12.22 | $14.05 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.06) | (0.12) | (0.09) | (0.09) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.52) | 1.47 | 3.71 | 3.14 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.58) | 1.35 | 3.62 | 3.05 | 0.38 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.80) | (1.57) | (1.81) | (2.51) | (2.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.80) | (1.57) | (1.81) | (2.51) | (2.21) |
|  **Net Asset Value, End of Period** | $7.97 | $14.35 | $14.57 | $12.76 | $12.22 |
|  **Total Return (%)** (c) | (23.10) | 9.74 | 34.04 | 26.51 | 0.28 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.20 | 1.20 | 1.22 | 1.23 | 1.21 |
|  Net ratio of expenses to average net assets (%) (d) | 1.11 | 1.11 | 1.13 | 1.14 | 1.13 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.68) | (0.81) | (0.78) | (0.70) | (0.33) |
|  Portfolio turnover rate (%) | 33 | 44 | 57 | 47 | 44 |
|  Net assets, end of period (in millions) | $48.7 | $69.6 | $73.3 | $63.8 | $57.8 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $15.19 | $15.32 | $13.31 | $12.64 | $14.45 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.06) | (0.11) | (0.08) | (0.08) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.71) | 1.55 | 3.90 | 3.26 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.77) | 1.44 | 3.82 | 3.18 | 0.40 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.80) | (1.57) | (1.81) | (2.51) | (2.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.80) | (1.57) | (1.81) | (2.51) | (2.21) |
|  **Net Asset Value, End of Period** | $8.62 | $15.19 | $15.32 | $13.31 | $12.64 |
|  **Total Return (%)** (c) | (23.07) | 9.86 | 34.15 | 26.68 | 0.43 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.10 | 1.10 | 1.12 | 1.13 | 1.11 |
|  Net ratio of expenses to average net assets (%) (d) | 1.01 | 1.01 | 1.03 | 1.04 | 1.03 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.58) | (0.70) | (0.68) | (0.60) | (0.22) |
|  Portfolio turnover rate (%) | 33 | 44 | 57 | 47 | 44 |
|  Net assets, end of period (in millions) | $5.5 | $7.9 | $8.4 | $7.4 | $7 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Distributions from return of capital were less than $0.01.

(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(d) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

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

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

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

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

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

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

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

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

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

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

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

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

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

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

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

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $6,973,041. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $2,031,926. The

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

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

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

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

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

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

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

**3. Certain Risks** 

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

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

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

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

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

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $130337861 | $0 | $143858358 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

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

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $3562587 | 0.900% | Of the first $500 million |
|  | 0.850% | On amounts in excess of $500 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Loomis, Sayles & Company, L.P. is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers** - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.080% | On the first $100 million |
| 0.100% | On the next $400 million |
| 0.050% | On amounts in excess of $500 million |

---

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

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

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees** - The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Contractual Obligations** 

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

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $328533095 |
|  Gross unrealized appreciation | 61859761 |
|  Gross unrealized (depreciation) | (24139232) |
|  Net unrealized appreciation (depreciation) | $37720529 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Return of Capital** | **Return of Capital** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $— | $— | $88677929 | $46159211 | $179021 | $— | $88856950 | $46159211 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital<br>Losses** | **Total** |
| $— | $– $| 37720529 | $(876269) | $36844260 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $876,269.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Loomis Sayles Small Cap Growth Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Loomis Sayles Small Cap Growth Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Growth Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

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

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

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

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

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

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

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

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

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

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

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

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

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

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

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Loomis Sayles Small Cap Growth Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Loomis, Sayles & Company, L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one-, three-, and five-year periods ended June 30, 2022. The Board considered that the Portfolio outperformed the average of its Morningstar Category for the one- and five-year periods ended June 30, 2022 and underperformed the average of its Morningstar Category for the three-year period ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Growth Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Loomis Sayles Small Cap Growth Portfolio** 

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

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median and above the Expense Universe median and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the average of the Sub-advised Expense Group and above the average of the Sub-advised Expense Universe, each at the Portfolio's current size.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Managed by MetLife Investment Management, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, E and G shares of the MetLife Aggregate Bond Index Portfolio returned -13.09%, -13.31%, -13.25%, and -13.33%, respectively. The Portfolio's benchmark, the Bloomberg U.S. Aggregate Bond Index¹, returned -13.01%.

**MARKET ENVIRONMENT / CONDITIONS** 

Accommodative fiscal and monetary policies in response to the pandemic accelerated U.S. gross domestic product ("GDP") and employment growth but also exacerbated inflation. In response to persistent inflation, The U.S. Federal Reserve Bank (the "Fed") initiated an unprecedented monetary tightening policy that remained throughout the year. Inflation peaked in June at 9.1%, before easing back to 7.1% by year-end. Despite high inflation and aggressive monetary policy, the U.S. economy remained resilient. GDP rebounded from slight contractions in the first and second quarter to grow 3.2% in the third quarter. The economy remained supported by stronger than expected growth in production, consumer spending and labor markets. Investors remained concerned about persistent inflation, risk of a near-term recession, and the continued global economic repercussions from the Russian invasion of Ukraine.

The Federal Funds target rate had remained at 0.00%—0.25% since March 2020, but was quickly reversed in March 2022 to combat rapidly increasing inflation. Beginning in March, The Fed increased rates seven times to a target rate of 4.25%—4.50% by year-end. Additionally, The Fed began to unwind its asset purchase program in June. The committee anticipated further tightening as it remained strongly committed to restoring inflation to its 2% long-term target.

U.S. Treasury rates ended the year substantially higher. The 5-year Treasury increased 2.70% to 3.96%, the 10-year Treasury increased 2.33% to 3.83% and the 30-year Treasury increased 2.05% to 3.94%. The overall curve flattened as the difference between the 2-year and 10-year Treasury decreased 1.34% to -0.57% while the 10-year and 30-year yield differential decreased only 0.28% to 0.11% at year end.

The benchmark index returned -13.01% in 2022. The Asset-Backed Security sector was the best performing asset class during the year, returning -4.30%. Corporates was the worst performing asset class, returning -15.76%. Option adjusted spreads for the Index increased 0.15%, ending the year at 0.36%. The worst performing asset classes were Commercial Mortgage-Backed Securities and Corporates with spreads increasing by 0.51% and 0.38%, respectively.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio is managed utilizing a stratified sampling approach where the objective is to track the performance of the Index by holding a subset of Index constituents and neutralizing exposures across key characteristics (i.e., duration, term structure, high sector, sub-sector, quality). Factors that impact tracking error include sampling, transaction costs, and contributions and withdrawals.

**Stacey Lituchy** 

**Jason Chapin** 

**Brian Leonard** 

Portfolio Managers

*MetLife Investment Management, LLC* 

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

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

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG U.S. AGGREGATE BOND INDEX**![LOGO](g400082g88q34.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**MetLife Aggregate Bond Index Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -13.09 | -0.18 | 0.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -13.31 | -0.44 | 0.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -13.25 | -0.34 | 0.67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class G** | -13.33 | -0.48 | 0.52 |
| &nbsp;&nbsp;&nbsp;**Bloomberg U.S. Aggregate Bond Index** | -13.01 | 0.02 | 1.06 |

---

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

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

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Treasury & Government Agencies** | **70.3** |
| **Corporate Bonds & Notes** | **25.8** |
| **Foreign Government** | **1.5** |
| **Mortgage-Backed Securities** | **1.0** |
| **Municipals** | **0.5** |
| **Asset-Backed Securities** | **0.4** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

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

**Hypothetical Example for Comparison Purposes** 

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

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MetLife Aggregate Bond Index Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.27% | $1000.00 | $969.80 | $1.34 |
|  | Hypothetical\* | 0.27% | $1000.00 | $1023.84 | $1.38 |
|  Class B (a) | Actual | 0.52% | $1000.00 | $968.10 | $2.58 |
|  | Hypothetical\* | 0.52% | $1000.00 | $1022.58 | $2.65 |
|  Class E (a) | Actual | 0.42% | $1000.00 | $968.60 | $2.08 |
|  | Hypothetical\* | 0.42% | $1000.00 | $1023.09 | $2.14 |
|  Class G (a) | Actual | 0.57% | $1000.00 | $967.90 | $2.83 |
|  | Hypothetical\* | 0.57% | $1000.00 | $1022.33 | $2.91 |

---

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

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

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

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—70.3% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—28.3%** | **Agency Sponsored Mortgage - Backed—28.3%** | **Agency Sponsored Mortgage - Backed—28.3%** |
|  Fannie Mae 15 Yr. Pool<br>1.500%, 04/01/36 | 1598386 | $1386996 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 05/01/36 | 4075881 | 3536837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 09/01/36 | 1740109 | 1509976 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 11/01/36 | 2687620 | 2332177 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/35 | 8604304 | 7688198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/35 | 3347914 | 2991459 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/36 | 4225280 | 3773484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/36 | 2672617 | 2386842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/37 | 911076 | 813645 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/27 | 750052 | 715252 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/28 | 666174 | 635266 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/28 | 441873 | 421001 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/28 | 756511 | 720777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/30 | 786357 | 736900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/31 | 1353281 | 1262319 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/32 | 424059 | 395556 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/32 | 985666 | 918081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/32 | 238879 | 222499 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/34 | 766098 | 705995 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/35 | 733704 | 674890 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/27 | 214952 | 207027 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/27 | 361082 | 347613 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/27 | 178406 | 172097 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/29 | 1323220 | 1276233 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/29 | 522634 | 503935 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/30 | 630492 | 597733 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/33 | 672912 | 637637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/36 | 805379 | 759434 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/26 | 251263 | 244579 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/26 | 174222 | 169452 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/29 | 504268 | 490652 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/32 | 174086 | 168575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/34 | 259397 | 250129 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/24 | 16509 | 16279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/24 | 111935 | 110189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/24 | 34479 | 34068 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/25 | 92648 | 91361 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/01/24 | 2010 | 2000 |
|  Fannie Mae 20 Yr. Pool<br>2.000%, 02/01/41 | 2397539 | 2021760 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/01/41 | 2157691 | 1819895 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/41 | 1785976 | 1555408 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/33 | 538936 | 505781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/35 | 636255 | 588335 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/36 | 736395 | 679080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/32 | 421342 | 403798 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/35 | 571914 | 543365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/38 | 415437 | 396605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/31 | 184382 | 179894 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/38 | 382956 | 371260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/30 | 104297 | 103100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/01/24 | 5858 | 5816 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/25 | 21369 | 21162 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/23 | 2109 | 2101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/24 | 3885 | 3866 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 20 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/24 | 14954 | 14872 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/25 | 23416 | 23301 |
|  Fannie Mae 30 Yr. Pool<br>1.500%, 03/01/51 | 3506222 | 2710836 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 04/01/51 | 4447955 | 3438480 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 10/01/51 | 934079 | 721512 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/50 | 9838110 | 8071595 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/50 | 7742727 | 6350053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/50 | 3948068 | 3236709 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/51 | 9703107 | 7951798 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 4096164 | 3355578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 8571002 | 7011199 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 4371363 | 3574478 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/01/51 | 5321154 | 4349473 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 2263370 | 1848656 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/51 | 4578108 | 3737846 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/51 | 6466695 | 5277794 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/51 | 1866487 | 1522754 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/51 | 4700333 | 3833258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/52 | 2836497 | 2312365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/52 | 5663 | 4613 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/52 | 1886038 | 1536291 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/50 | 986807 | 846996 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/50 | 913057 | 782647 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/50 | 2202992 | 1886977 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/50 | 3569477 | 3055230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/50 | 6402048 | 5477733 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/50 | 5172552 | 4424145 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/50 | 1269763 | 1085256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/50 | 1976117 | 1688358 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/51 | 2042897 | 1744780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/51 | 1019069 | 870042 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 3204503 | 2732509 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/51 | 4251896 | 3621340 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 2155058 | 1834376 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 7036865 | 5986199 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 5374506 | 4569334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 6472722 | 5496491 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 2809370 | 2384237 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/52 | 5668020 | 4807437 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 951193 | 806041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/52 | 1942230 | 1646907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/42 | 711535 | 645229 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/42 | 596306 | 540737 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/42 | 959508 | 873466 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/42 | 641404 | 582605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/43 | 451891 | 409780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/43 | 902267 | 828581 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/43 | 924910 | 838563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/43 | 548320 | 497130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/45 | 1257037 | 1141777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/46 | 727784 | 653967 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/46 | 998067 | 896837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/46 | 1068835 | 960427 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/47 | 1486244 | 1335500 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/49 | 665912 | $591967 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/49 | 1199417 | 1066231 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/50 | 1247859 | 1109293 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/50 | 609437 | 541763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/50 | 2492888 | 2216389 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/50 | 922310 | 819655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/50 | 3772346 | 3351745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/51 | 2612397 | 2303755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/51 | 2238276 | 1972445 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/52 | 3838068 | 3373477 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/52 | 3880721 | 3410213 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/52 | 3408234 | 2994349 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/40 | 434770 | 407176 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/42 | 412929 | 387626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/42 | 760527 | 712303 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/42 | 525831 | 492489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/42 | 321312 | 300939 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/42 | 1364172 | 1277672 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/43 | 520624 | 487612 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/43 | 670751 | 629086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/44 | 710089 | 662828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/45 | 758644 | 708151 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/45 | 819887 | 760160 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/45 | 489212 | 453574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/45 | 650023 | 602671 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/45 | 659550 | 611503 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/46 | 796573 | 738545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/46 | 747640 | 692137 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/46 | 530179 | 490820 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/47 | 1239334 | 1147159 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/49 | 243938 | 225644 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/49 | 286423 | 263444 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/49 | 600982 | 552768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/50 | 393686 | 362102 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/50 | 194173 | 178596 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/50 | 902720 | 830051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/52 | 3830491 | 3480947 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/52 | 1939162 | 1762207 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/52 | 3938771 | 3579346 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/39 | 299199 | 289945 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/39 | 245825 | 238221 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/39 | 298380 | 289151 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/40 | 290414 | 280949 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/40 | 185477 | 179433 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/40 | 1663104 | 1611907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/41 | 711488 | 688300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/41 | 276825 | 266986 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/42 | 394334 | 380319 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/43 | 533722 | 516533 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/44 | 555910 | 535047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/44 | 954286 | 918472 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/44 | 288972 | 278127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/44 | 788681 | 759191 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/45 | 668677 | 643582 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/45 | 436765 | 419991 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/45 | 629857 | 605668 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/47 | 188438 | 179917 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/47 | 199108 | 190105 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/47 | 1377726 | 1315432 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/47 | 325566 | 310845 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/47 | 481654 | 459876 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/48 | 545076 | 519978 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/48 | 461055 | 439826 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/48 | 347971 | 331949 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/48 | 166977 | 159289 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/48 | 260840 | 248830 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/48 | 321788 | 306972 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/49 | 536646 | 510837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/50 | 564437 | 537291 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/50 | 614582 | 585024 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/50 | 481035 | 455998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/52 | 3172975 | 2976479 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/52 | 3926538 | 3683376 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/52 | 1486727 | 1394608 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/33 | 49098 | 48439 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/33 | 63075 | 62228 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/34 | 49718 | 49049 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/39 | 8350 | 8277 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/39 | 440518 | 436687 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/39 | 527094 | 522510 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/39 | 338041 | 335101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/40 | 423430 | 419669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/40 | 482032 | 477751 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/40 | 270981 | 268574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/40 | 645340 | 639608 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/41 | 1623977 | 1609235 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/41 | 324579 | 321597 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/01/44 | 234546 | 231960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/47 | 468567 | 459458 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/48 | 236381 | 231675 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/48 | 308460 | 302318 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/52 | 1938626 | 1867978 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/52 | 2928501 | 2821779 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/52 | 1968414 | 1896680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/52 | 3464917 | 3338647 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/33 | 36478 | 36633 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/33 | 160838 | 161525 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/33 | 56024 | 56263 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/33 | 567647 | 570070 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/34 | 69624 | 69921 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/34 | 142297 | 142974 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/34 | 24563 | 24690 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/34 | 105062 | 105607 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/01/35 | 44002 | 44230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/35 | 12422 | 12505 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/35 | 14684 | 14782 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/35 | 42849 | 43134 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/36 | 152311 | 153325 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/37 | 113625 | 114809 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/39 | 118544 | 119779 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

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

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/40 | 347878 | $352131 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/41 | 221781 | 224525 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/49 | 377190 | 375779 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/52 | 1964395 | 1937144 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/52 | 1484000 | 1463414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/01/52 | 3970140 | 3915066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/01/32 | 10069 | 10268 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/01/33 | 28290 | 28849 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/01/33 | 4561 | 4653 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/01/33 | 69937 | 71341 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/01/33 | 38223 | 38990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/33 | 179852 | 183461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/01/34 | 33388 | 34094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/01/34 | 27596 | 28179 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/34 | 12845 | 13116 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/01/34 | 58307 | 59538 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/34 | 39272 | 40102 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/35 | 41085 | 41953 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/35 | 7814 | 8009 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/35 | 41950 | 42999 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/37 | 51950 | 53446 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 05/01/37 | 42312 | 43561 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 05/01/38 | 27400 | 28216 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/38 | 28152 | 28990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/52 | 1990157 | 1996201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/53 | 1992087 | 1998185 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/28 | 178 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/28 | 151 | 155 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/28 | 230 | 236 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/31 | 23496 | 24365 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/32 | 25218 | 26330 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/01/33 | 4613 | 4817 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/33 | 30828 | 32187 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/01/33 | 27180 | 28413 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/33 | 65909 | 68899 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/01/33 | 64771 | 67709 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/01/34 | 56365 | 58939 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/34 | 53840 | 56299 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/01/35 | 29564 | 30914 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/36 | 9662 | 10116 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/36 | 40007 | 41884 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/37 | 40226 | 42170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/37 | 67664 | 70935 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/37 | 40505 | 42462 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/38 | 41784 | 43835 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/28 | 9521 | 9828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 12/01/28 | 38336 | 39618 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 03/01/29 | 1037 | 1071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/01/29 | 7090 | 7321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/29 | 233 | 241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/01/29 | 349 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/30 | 9087 | 9409 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 09/01/31 | 2851 | 2979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/01/32 | 6447 | 6763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 10/01/33 | 13405 | 14288 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 10/01/34 | 89146 | 95017 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 10/01/37 | 12493 | 13372 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 06/01/26 | 137 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 06/01/28 | 4025 | 4067 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 10/01/29 | 1950 | 2033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 06/01/32 | 20229 | 21356 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 10/01/37 | 57919 | 63032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 09/01/25 | 728 | 739 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 06/01/26 | 796 | 811 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 07/01/29 | 2612 | 2724 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 10/01/29 | 1600 | 1631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 11/01/29 | 39 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 05/01/30 | 11371 | 11828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 11/01/30 | 336 | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 01/01/31 | 581 | 603 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 02/01/31 | 1386 | 1479 |
|  Fannie Mae-ACES<br>1.610%, 03/25/31 | 1039859 | 944110 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.190%, 01/25/30 | 1435000 | 1231227 |
|  Freddie Mac 15 Yr. Gold Pool<br>2.500%, 12/01/27 | 255366 | 243756 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/28 | 503683 | 480339 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/29 | 714611 | 672141 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/31 | 1034175 | 970124 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/32 | 1770881 | 1653421 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/27 | 210690 | 202848 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/27 | 292830 | 282763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/28 | 424409 | 409726 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/31 | 916031 | 868954 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/25 | 174437 | 170285 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/26 | 62376 | 60749 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/30 | 709323 | 690628 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/25 | 65441 | 64294 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/25 | 38328 | 37630 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/25 | 62935 | 61688 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/24 | 5762 | 5743 |
|  Freddie Mac 15 Yr. Pool<br>1.500%, 03/01/36 | 1551327 | 1346213 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 05/01/36 | 4073054 | 3534520 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/35 | 2421569 | 2163755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/35 | 1907744 | 1704634 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/01/36 | 801220 | 715534 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/35 | 1252491 | 1152132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/32 | 459066 | 434998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/35 | 742318 | 700221 |
|  Freddie Mac 20 Yr. Gold Pool<br>3.000%, 04/01/33 | 849851 | 796867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/37 | 908061 | 838266 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/32 | 524849 | 503453 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/31 | 201686 | 196960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/31 | 220750 | 215334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/29 | 47850 | 47345 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/27 | 19255 | 19117 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac 20 Yr. Pool<br>1.500%, 01/01/42 | 2824531 | $2293112 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/41 | 2028816 | 1712556 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/41 | 2770553 | 2332867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/41 | 1501844 | 1308029 |
|  Freddie Mac 30 Yr. Gold Pool<br>3.000%, 10/01/42 | 918013 | 833330 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/43 | 692614 | 628723 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/43 | 625468 | 567772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/43 | 1454667 | 1322295 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/43 | 961017 | 872167 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/45 | 1020315 | 918252 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/46 | 1006957 | 905731 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/46 | 1132427 | 1018588 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/47 | 1990041 | 1789988 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/42 | 321861 | 301736 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/42 | 293617 | 275268 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/43 | 502169 | 470787 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/43 | 768955 | 720524 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/43 | 445163 | 417125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/44 | 365316 | 341336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/44 | 471756 | 440790 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/44 | 557818 | 521202 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/45 | 719714 | 667936 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/45 | 700441 | 650049 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/45 | 431766 | 400704 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/46 | 1236703 | 1146956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/47 | 569805 | 527931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/47 | 367393 | 340394 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/47 | 492339 | 456157 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/39 | 187835 | 182207 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/39 | 360482 | 349681 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/40 | 264096 | 255732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/41 | 314664 | 303779 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/41 | 274413 | 264920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/41 | 726616 | 701480 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/41 | 245703 | 237204 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/44 | 595844 | 574037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/44 | 462377 | 445454 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/45 | 728990 | 701684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/46 | 668083 | 643058 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/46 | 376379 | 362281 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/47 | 602282 | 575597 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/47 | 319999 | 305821 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/47 | 306128 | 292565 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/48 | 482684 | 461298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/48 | 223655 | 213565 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/48 | 245628 | 234548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/48 | 296692 | 283307 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/49 | 175155 | 167254 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/35 | 106167 | 104908 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/38 | 151556 | 149758 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/39 | 94199 | 93472 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/01/39 | 122581 | 121634 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/39 | 142394 | 141294 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/39 | 167544 | 166250 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/39 | 405526 | 402393 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/39 | 118016 | 117104 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/40 | 121015 | 120080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/40 | 164172 | 162873 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/40 | 247867 | 245906 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/41 | 48641 | 48241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/41 | 169578 | 168185 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/41 | 101491 | 100657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/43 | 201450 | 199650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/45 | 291550 | 288619 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/47 | 429534 | 421596 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/48 | 177906 | 174538 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/48 | 313175 | 307245 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/48 | 200311 | 196518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/33 | 160173 | 161038 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/34 | 25500 | 25661 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/35 | 151789 | 152968 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/35 | 44028 | 44370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/35 | 7486 | 7544 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/36 | 127548 | 128539 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/38 | 82743 | 83774 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/39 | 364516 | 369229 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/40 | 403561 | 408947 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/34 | 32917 | 33649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/01/35 | 47795 | 49045 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/36 | 76690 | 78696 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/37 | 96861 | 99767 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/38 | 49218 | 50736 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/38 | 53203 | 54843 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/28 | 1609 | 1653 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/28 | 1274 | 1309 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/29 | 663 | 681 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/31 | 974 | 1011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/31 | 188 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/31 | 33274 | 34541 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/32 | 6465 | 6757 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/35 | 30503 | 31948 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/36 | 37602 | 39383 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/36 | 16001 | 16770 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/01/37 | 21290 | 22313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/01/30 | 3267 | 3386 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/01/31 | 2515 | 2631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 11/01/31 | 5109 | 5345 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 03/01/32 | 95979 | 100784 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/01/32 | 91950 | 96552 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 11/01/37 | 29582 | 31695 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 12/01/27 | 329 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 11/01/28 | 515 | 534 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 04/01/29 | 1021 | 1065 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 05/01/29 | 214 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 07/01/29 | 131 | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 01/01/31 | 30371 | 31096 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 10/01/27 | 2114 | 2187 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 10/01/29 | 2916 | 3076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 05/01/30 | 4213 | 4387 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 02/01/27 | 748 | $771 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 10/01/28 | 1257 | 1307 |
|  Freddie Mac 30 Yr. Pool<br>1.500%, 03/01/51 | 875855 | 677178 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 04/01/51 | 4424585 | 3420468 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 05/01/51 | 2235106 | 1727641 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/50 | 3768763 | 3092053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/50 | 3893864 | 3193483 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/50 | 6366152 | 5219110 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/51 | 9705156 | 7953486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 4086735 | 3347858 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 5629606 | 4603218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/01/51 | 1770021 | 1446761 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 07/01/51 | 5380379 | 4396087 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 4430295 | 3618436 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/51 | 6572934 | 5360264 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/50 | 1621959 | 1390300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/50 | 4252055 | 3639475 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/50 | 2940743 | 2515256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 2386177 | 2040188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/50 | 3281814 | 2803926 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/51 | 4345315 | 3707489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/51 | 5981100 | 5094112 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 4171843 | 3551061 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 2311726 | 1963069 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/48 | 429229 | 385666 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/49 | 964807 | 857666 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/49 | 1244966 | 1106713 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/50 | 631358 | 561246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/50 | 1121492 | 997300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/50 | 1070235 | 951512 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/50 | 948603 | 843005 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/50 | 1028116 | 912871 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/47 | 507591 | 469832 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/49 | 340173 | 312867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/49 | 218457 | 200921 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/49 | 464084 | 426832 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/50 | 623901 | 573820 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/50 | 1208707 | 1110984 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/50 | 1740917 | 1599895 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/49 | 170107 | 162275 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/49 | 342333 | 325870 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/49 | 172947 | 169503 |
|  Freddie Mac Multifamily Structured Pass-Through Certificates<br>2.519%, 07/25/29 | 2250000 | 2001130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.785%, 06/25/29 | 1800000 | 1629602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.187%, 09/25/27 (a) | 1265000 | 1198708 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.194%, 07/25/27 | 685000 | 649906 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.780%, 10/25/28 (a) | 4000000 | 3844483 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.920%, 09/25/28 (a) | 2900000 | 2817479 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.926%, 07/25/28 (a) | 2500000 | 2434884 |
|  Ginnie Mae I 15 Yr. Pool<br>3.000%, 08/15/28 | 418446 | 398855 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Ginnie Mae I 30 Yr. Pool<br>3.000%, 11/15/42 | 654434 | 593001 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/15/42 | 689089 | 624403 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/43 | 495077 | 448603 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/15/43 | 542291 | 491375 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/15/43 | 481271 | 436085 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/15/42 | 176758 | 165931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/39 | 406718 | 395349 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/40 | 221287 | 215110 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/15/39 | 82517 | 82161 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/39 | 218264 | 217319 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/15/39 | 455892 | 453918 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/15/39 | 174791 | 174035 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/15/40 | 190501 | 189676 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/40 | 95103 | 94695 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/15/41 | 51761 | 51539 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/41 | 59473 | 59227 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/35 | 84432 | 85834 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/36 | 18444 | 18530 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/15/39 | 240544 | 245323 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/15/39 | 47563 | 48604 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/15/39 | 266919 | 272380 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/15/39 | 44550 | 45463 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/39 | 172907 | 176617 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/15/40 | 144012 | 146783 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/15/36 | 47519 | 48612 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/15/38 | 18277 | 18622 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/15/39 | 57869 | 60414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/15/29 | 917 | 931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/15/33 | 66725 | 69446 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/15/35 | 46294 | 48635 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/15/35 | 45354 | 47265 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/15/36 | 38148 | 39825 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/15/38 | 103949 | 109763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/15/27 | 4566 | 4607 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/15/28 | 1667 | 1686 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/15/28 | 3266 | 3334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 11/15/28 | 1493 | 1535 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 12/15/28 | 3818 | 3882 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/15/29 | 1272 | 1291 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/15/36 | 80706 | 85451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 01/15/28 | 560 | 574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 05/15/28 | 2806 | 2849 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 06/15/28 | 2981 | 3071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 10/15/28 | 3666 | 3766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 09/15/29 | 283 | 284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 01/15/31 | 907 | 925 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 03/15/31 | 470 | 485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 08/15/31 | 24780 | 26263 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 07/15/32 | 10052 | 10673 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 08/15/26 | 630 | 648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 09/15/26 | 646 | 648 |
|  Ginnie Mae II 30 Yr. Pool<br>2.000%, 11/20/50 | 4412555 | 3722138 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/20/51 | 2294971 | 1935885 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/20/51 | 3959349 | 3332984 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Ginnie Mae II 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/20/51 | 4050823 | $| 3408733 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/20/51 | 9081986 |  | 7639602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/20/51 | 2091135 |  | 1758377 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/20/51 | 2732449 |  | 2294256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/20/51 | 2333273 |  | 1957649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/20/50 | 931281 |  | 812203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/20/50 | 3363719 |  | 2933617 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/20/50 | 2423945 |  | 2114007 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/20/50 | 4006201 |  | 3493948 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/20/50 | 1181933 |  | 1030805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/20/50 | 1801173 |  | 1570866 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/20/50 | 1874188 |  | 1634545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/20/51 | 2300322 |  | 2001908 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/20/51 | 2475278 |  | 2152635 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/20/51 | 2610407 |  | 2265451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/20/51 | 4432223 |  | 3845802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/20/51 | 4616869 |  | 4002473 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/20/52 | 2399945 |  | 2076002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/20/42 | 671302 |  | 610577 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/20/43 | 618783 |  | 562654 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/20/44 | 567904 |  | 515566 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/45 | 516580 |  | 468208 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/20/45 | 928280 |  | 841356 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/45 | 497203 |  | 450646 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/46 | 814920 |  | 738611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/46 | 888785 |  | 805515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/20/46 | 909106 |  | 823931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/46 | 958453 |  | 869566 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/47 | 991200 |  | 898334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/47 | 434158 |  | 393435 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/20/48 | 630365 |  | 571239 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/20/49 | 690649 |  | 622352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/50 | 1816831 |  | 1635654 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/50 | 1435647 |  | 1290874 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/20/50 | 923849 |  | 830401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/50 | 2040996 |  | 1833919 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/51 | 1780496 |  | 1593745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/52 | 4371709 |  | 3894304 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/20/41 | 392306 |  | 369534 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/20/42 | 360496 |  | 339586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/43 | 509972 |  | 480392 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/43 | 784103 |  | 738562 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/44 | 754698 |  | 710146 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/45 | 778545 |  | 732584 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/45 | 482940 |  | 453910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/20/45 | 1137760 |  | 1069368 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/45 | 755086 |  | 709697 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/20/45 | 697363 |  | 655443 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/46 | 661435 |  | 621675 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/46 | 539964 |  | 507506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/46 | 592937 |  | 556312 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/47 | 939859 |  | 881805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/47 | 793560 |  | 741173 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/20/47 | 328130 |  | 306468 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/48 | 156542 |  | 146003 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Ginnie Mae II 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/49 | 288387 |  | 268538 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/49 | 315018 |  | 293251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/20/49 | 845429 |  | 786669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/49 | 524949 |  | 488463 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/20/49 | 725357 |  | 674844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/20/49 | 474186 |  | 441101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/50 | 607785 |  | 565378 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/50 | 690015 |  | 640657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/51 | 1126199 |  | 1047317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/20/52 | 1970523 |  | 1808566 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/40 | 339869 |  | 331734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/20/40 | 466665 |  | 455496 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/43 | 226326 |  | 220211 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/20/44 | 319084 |  | 308298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/20/44 | 381626 |  | 368725 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/44 | 628217 |  | 606979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/44 | 167203 |  | 161550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/20/45 | 579192 |  | 559002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/45 | 312352 |  | 301464 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/20/47 | 120647 |  | 116418 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/20/47 | 480432 |  | 461888 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/47 | 440843 |  | 423827 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/48 | 306855 |  | 294805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/20/48 | 220656 |  | 211991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/48 | 398734 |  | 383076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/49 | 409540 |  | 393198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/20/50 | 588033 |  | 564569 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/52 | 2468649 |  | 2334771 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/20/52 | 1492881 |  | 1411920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/20/40 | 273256 |  | 273170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/20/40 | 206540 |  | 206474 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/20/41 | 156801 |  | 156711 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/42 | 165403 |  | 165308 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/20/43 | 195997 |  | 195507 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/47 | 307100 |  | 305324 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/49 | 211523 |  | 207726 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/20/52 | 2476943 |  | 2401670 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/20/52 | 2986996 |  | 2896223 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/20/40 | 143810 |  | 146528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/20/40 | 158041 |  | 161028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/20/44 | 338287 |  | 344680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/20/48 | 232099 |  | 232670 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/20/49 | 163535 |  | 163937 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/20/31 | 6905 |  | 7219 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 02/20/28 | 545 |  | 563 |
|  |  |  | 568160297 |
| **Federal Agencies—1.2%** | **Federal Agencies—1.2%** | **Federal Agencies—1.2%** | **Federal Agencies—1.2%** |
|  Federal Farm Credit Banks Funding Corp.<br>0.125%, 05/10/23 | 1500000 |  | 1475400 |
|  Federal Home Loan Banks<br>2.875%, 09/13/24 | 4600000 |  | 4461218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/10/27 | 2000000 |  | 1894000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 11/16/28 (b) | 2700000 |  | 2598534 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Federal Agencies—(Continued)** | **Federal Agencies—(Continued)** | **Federal Agencies—(Continued)** | **Federal Agencies—(Continued)** |
|  Federal Home Loan Mortgage Corp.<br>0.375%, 09/23/25 | 2100000 | $| 1891533 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 02/12/25 (b) | 1500000 |  | 1412730 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 07/15/32 (b) | 1600000 |  | 1872272 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.750%, 03/15/31 | 900000 |  | 1061865 |
|  Federal National Mortgage Association<br>0.750%, 10/08/27 (b) | 1500000 |  | 1289250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 04/24/26 (b) | 2500000 |  | 2341900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 09/06/24 | 800000 |  | 776448 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 11/15/30 | 1450000 |  | 1695456 |
|  Tennessee Valley Authority<br>3.500%, 12/15/42 (b) | 1600000 |  | 1328192 |
|  |  |  | 24098798 |
| **U.S. Treasury—40.8%** | **U.S. Treasury—40.8%** | **U.S. Treasury—40.8%** | **U.S. Treasury—40.8%** |
|  U.S. Treasury Bonds<br>1.125%, 05/15/40 | 7100000 |  | 4477437 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 08/15/40 | 3200000 |  | 2003500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 05/15/50 | 3200000 |  | 1739000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 11/15/40 | 7500000 |  | 4912500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 08/15/50 | 7600000 |  | 4266687 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 11/15/50 (b) | 6500000 |  | 3907109 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 08/15/41 | 4300000 |  | 2967000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 02/15/41 | 5200000 |  | 3701750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 02/15/51 (b) | 5800000 |  | 3719250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 11/15/51 (b) | 6500000 |  | 4155938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/15/50 | 8000000 |  | 5325000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/15/51 (b) | 7500000 |  | 4953516 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 05/15/41 | 3700000 |  | 2798125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 08/15/46 | 3000000 |  | 2140313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 08/15/49 | 6000000 |  | 4253438 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 02/15/52 | 2100000 |  | 1476563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 05/15/51 | 5100000 |  | 3694313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/15/46 | 4800000 |  | 3608250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 08/15/42 | 4820000 |  | 3905706 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 11/15/42 | 1200000 |  | 969563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 08/15/47 (b) | 3000000 |  | 2358750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 11/15/47 | 800000 |  | 629000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/43 | 3260000 |  | 2680841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 08/15/45 (b) | 3700000 |  | 2997578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 11/15/46 (b) | 4600000 |  | 3713781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/49 (b) | 2300000 |  | 1863359 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/52 | 3900000 |  | 3157781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/15/44 | 2600000 |  | 2160844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/15/45 | 3100000 |  | 2569609 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/47 (b) | 3000000 |  | 2470781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/15/47 (b) | 2800000 |  | 2305188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/15/48 | 7700000 |  | 6364531 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/49 | 7300000 |  | 6057859 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/15/52 (b) | 4700000 |  | 3919359 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 11/15/41 | 3000000 |  | 2605313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 02/15/43 | 3270000 |  | 2809134 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 08/15/44 | 4700000 |  | 3991328 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 05/15/42 (b) | 3100000 |  | 2739625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 05/15/44 | 3000000 |  | 2660156 |
| **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** |
|  U.S. Treasury Bonds |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 11/15/48 | 5000000 |  | 4443750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/15/39 | 1872000 |  | 1769040 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.625%, 08/15/43 | 2600000 |  | 2409063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.625%, 02/15/44 | 2420000 |  | 2237366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 08/15/41 | 1300000 |  | 1241094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/15/42 | 1000000 |  | 979063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 05/15/39 | 2200000 |  | 2279063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 11/15/40 | 1780000 |  | 1828672 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 11/15/39 | 1900000 |  | 1992922 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 05/15/40 | 1220000 |  | 1275472 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 05/15/41 (b) | 1350000 |  | 1407375 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/15/36 | 600000 |  | 642563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/15/38 | 1500000 |  | 1601953 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 02/15/40 | 1300000 |  | 1405016 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/15/37 (b) | 1560000 |  | 1750369 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 02/15/29 | 750000 |  | 797227 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 05/15/30 | 2500000 |  | 2855469 |
|  U.S. Treasury Notes<br>0.250%, 03/15/24 (b) | 11000000 |  | 10429805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 06/15/24 | 7000000 |  | 6570156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 07/31/25 (b) | 7000000 |  | 6320234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 08/31/25 | 5100000 |  | 4589203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 09/30/25 (b) | 9000000 |  | 8085937 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 04/15/24 | 4000000 |  | 3784844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 07/15/24 (b) | 13000000 |  | 12178867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 08/15/24 | 7000000 |  | 6541172 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 09/15/24 | 10100000 |  | 9413516 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 04/30/25 (b) | 7200000 |  | 6574500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 11/30/25 | 6100000 |  | 5461406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 12/31/25 | 12200000 |  | 10910422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 01/31/26 | 11200000 |  | 9973250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 07/31/27 (b) | 3100000 |  | 2633305 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 09/30/27 | 6300000 |  | 5318578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 03/31/25 (b) | 4000000 |  | 3675313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 02/28/26 | 6100000 |  | 5439008 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 04/30/27 | 8000000 |  | 6898750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 10/31/27 | 7600000 |  | 6438031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 07/31/26 | 6100000 |  | 5395164 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 11/30/27 (b) | 7000000 |  | 5953281 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 12/31/27 | 7200000 |  | 6108750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 05/15/30 (b) | 10000000 |  | 7934375 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 08/15/30 | 9600000 |  | 7581000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.750%, 01/31/28 | 6100000 |  | 5195961 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.875%, 06/30/26 | 6000000 |  | 5370469 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.875%, 11/15/30 (b) | 12700000 |  | 10181828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.000%, 07/31/28 | 4000000 |  | 3405938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 02/28/25 (b) | 3800000 |  | 3548547 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 10/31/26 | 6700000 |  | 5992574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 08/31/28 | 6000000 |  | 5135625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 02/15/31 (b) | 11500000 |  | 9401250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 11/30/26 | 2100000 |  | 1886063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 12/31/26 | 7600000 |  | 6813875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 03/31/28 | 5100000 |  | 4439391 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 04/30/28 | 6000000 |  | 5216250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 06/30/28 | 5900000 |  | 5109953 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** |
|  U.S. Treasury Notes |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 09/30/28 (b) | 6000000 | $| 5162812 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.250%, 08/15/31 | 14000000 |  | 11401250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 10/31/28 | 3300000 |  | 2855273 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 11/15/31 | 10200000 |  | 8333719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 10/31/24 (b) | 8100000 |  | 7675699 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 11/30/24 (b) | 7600000 |  | 7194172 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 02/15/25 (b) | 2100000 |  | 1977609 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 08/15/26 (b) | 5600000 |  | 5109563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 01/31/27 (b) | 8000000 |  | 7230625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 11/30/28 (b) | 10000000 |  | 8701562 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 02/15/30 (b) | 8300000 |  | 7088719 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 02/15/26 | 6400000 |  | 5923500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 05/15/26 | 10900000 |  | 10046734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 09/30/26 (b) | 6000000 |  | 5495156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 08/15/29 | 4500000 |  | 3911484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 05/15/31 | 9800000 |  | 8274875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 06/30/24 (b) | 7600000 |  | 7284125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 01/31/29 | 5000000 |  | 4402734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 08/31/24 (b) | 10200000 |  | 9755742 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 06/30/26 | 6900000 |  | 6406758 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 02/28/29 | 2100000 |  | 1863750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 02/15/32 | 11200000 |  | 9535750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/31/24 (b) | 8400000 |  | 8093203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/15/25 | 7600000 |  | 7235437 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/15/25 | 5100000 |  | 4818703 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/15/26 | 7300000 |  | 6754211 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 02/29/24 | 12000000 |  | 11650781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 03/31/24 (b) | 8100000 |  | 7845926 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 05/15/25 (b) | 5500000 |  | 5229297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 05/31/26 | 6800000 |  | 6367031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 11/15/24 | 6700000 |  | 6437234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 11/15/25 (b) | 10800000 |  | 10228781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 02/15/27 | 7800000 |  | 7263750 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 08/15/27 | 6100000 |  | 5649648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 11/15/27 | 2600000 |  | 2399109 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 08/15/24 | 13600000 |  | 13124531 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 05/15/27 (b) | 8000000 |  | 7466875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 05/15/29 | 6800000 |  | 6194906 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/31/24 | 3900000 |  | 3807527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/15/24 | 10100000 |  | 9801734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/31/25 (b) | 10100000 |  | 9715727 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/28/26 | 6700000 |  | 6367094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/31/27 | 5100000 |  | 4792008 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 04/15/25 | 8000000 |  | 7701875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 05/31/27 (b) | 10000000 |  | 9439062 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 02/15/29 | 8300000 |  | 7689820 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 02/15/24 | 4400000 |  | 4304094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 02/28/25 | 6900000 |  | 6669281 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 04/30/27 | 7200000 |  | 6831000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 02/15/28 | 6000000 |  | 5649844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 05/31/29 (b) | 9500000 |  | 8841680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 08/15/32 | 1100000 |  | 1005297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 04/30/25 (b) | 8400000 |  | 8135531 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 07/31/25 | 6600000 |  | 6379828 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/28 | 5900000 |  | 5577344 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 08/15/28 | 6000000 |  | 5661094 |
| **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** | **U.S. Treasury—(Continued)** |
|  U.S. Treasury Notes |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/32 (b) | 4000000 |  | 3702500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 11/15/28 | 8000000 |  | 7643125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 08/31/29 | 5300000 |  | 5045766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 11/30/27 | 4000000 |  | 3985625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/31/29 | 5000000 |  | 5015625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 09/30/27 | 4000000 |  | 4021563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 09/30/24 (b) | 11000000 |  | 10947148 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 10/31/24 (b) | 4000000 |  | 3990156 |
|  |  |  | 818964225 |
|  Total U.S. Treasury & Government Agencies <br>(Cost $1,606,930,008) |  |  | 1411223320 |
| **Corporate Bonds & Notes—25.8%** | **Corporate Bonds & Notes—25.8%** | **Corporate Bonds & Notes—25.8%** | **Corporate Bonds & Notes—25.8%** |
| **Aerospace/Defense—0.5%** | **Aerospace/Defense—0.5%** | **Aerospace/Defense—0.5%** | **Aerospace/Defense—0.5%** |
|  Boeing Co. (The)<br>5.150%, 05/01/30 (b) | 2300000 |  | 2249768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.930%, 05/01/60 | 1100000 |  | 1012869 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.250%, 06/15/25 | 460000 |  | 479334 |
|  Lockheed Martin Corp.<br>3.550%, 01/15/26 | 523000 |  | 508680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.090%, 09/15/52 | 954000 |  | 812197 |
|  Northrop Grumman Corp.<br>3.250%, 01/15/28 | 1100000 |  | 1019282 |
|  Northrop Grumman Systems Corp.<br>7.750%, 02/15/31 (b) | 515000 |  | 589577 |
|  Raytheon Technologies Corp.<br>3.125%, 05/04/27 (b) | 1000000 |  | 933170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/42 | 1645000 |  | 1490321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 09/15/29 | 200000 |  | 227082 |
|  |  |  | 9322280 |
| **Agriculture—0.3%** | **Agriculture—0.3%** | **Agriculture—0.3%** | **Agriculture—0.3%** |
|  Altria Group, Inc.<br>4.000%, 01/31/24 (b) | 1000000 |  | 990060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 02/14/49 (b) | 1200000 |  | 1075416 |
|  Philip Morris International, Inc.<br>3.250%, 11/10/24 (b) | 1000000 |  | 967240 |
|  Reynolds American, Inc.<br>4.450%, 06/12/25 | 2800000 |  | 2741340 |
|  |  |  | 5774056 |
| **Airlines—0.1%** | **Airlines—0.1%** | **Airlines—0.1%** | **Airlines—0.1%** |
|  Southwest Airlines Co.<br>5.125%, 06/15/27 (b) | 1900000 |  | 1881342 |
| **Apparel—0.1%** | **Apparel—0.1%** | **Apparel—0.1%** | **Apparel—0.1%** |
|  NIKE, Inc.<br>2.750%, 03/27/27 (b) | 2000000 |  | 1872380 |
| **Auto Manufacturers—0.4%** | **Auto Manufacturers—0.4%** | **Auto Manufacturers—0.4%** | **Auto Manufacturers—0.4%** |
|  American Honda Finance Corp.<br>2.250%, 01/12/29 | 1000000 |  | 861770 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.300%, 09/09/26 (b) | 300000 |  | 274566 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Auto Manufacturers—(Continued)** | **Auto Manufacturers—(Continued)** | **Auto Manufacturers—(Continued)** | **Auto Manufacturers—(Continued)** |
|  General Motors Financial Co., Inc.<br>1.250%, 01/08/26 (b) | 1200000 | $| 1058964 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.350%, 01/17/27 (b) | 3200000 |  | 3049152 |
|  Mercedes-Benz Finance North America LLC<br>8.500%, 01/18/31 (b) | 550000 |  | 679327 |
|  Toyota Motor Credit Corp.<br>3.375%, 04/01/30 (b) | 2600000 |  | 2368080 |
|  |  |  | 8291859 |
| **Banks—5.8%** | **Banks—5.8%** | **Banks—5.8%** | **Banks—5.8%** |
|  Banco Santander S.A.<br>4.379%, 04/12/28 (b) | 2200000 |  | 2069804 |
|  Bank of America Corp.<br>2.676%, SOFR + 1.930%, 06/19/41 (a) | 3000000 |  | 2034720 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.687%, SOFR + 1.320%, 04/22/32 (a) | 2000000 |  | 1605960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.100%, 07/24/23 (b) | 2905000 |  | 2889865 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 08/26/24 (b) | 3000000 |  | 2955810 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 02/07/42 | 3000000 |  | 3056910 |
|  Bank of Montreal<br>0.949%, SOFR + 0.603%, 01/22/27 (a) (b) | 2300000 |  | 2034741 |
|  Bank of New York Mellon Corp. (The)<br>3.442%, 3M LIBOR + 1.069%, 02/07/28 (a) (b) | 1800000 |  | 1692198 |
|  Barclays plc<br>4.375%, 01/12/26 (b) | 3500000 |  | 3382155 |
|  Canadian Imperial Bank of Commerce<br>2.250%, 01/28/25 (b) | 1000000 |  | 944290 |
|  Citigroup, Inc.<br>2.572%, SOFR + 2.107%, 06/03/31 (a) | 2500000 |  | 2026300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.200%, 10/21/26 | 1700000 |  | 1577923 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/05/24 (b) | 900000 |  | 887013 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.412%, SOFR + 3.914%, 03/31/31 (a) | 2900000 |  | 2669769 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.650%, 07/23/48 (b) | 1300000 |  | 1138865 |
|  Cooperatieve Rabobank UA<br>5.750%, 12/01/43 (b) | 1200000 |  | 1153920 |
|  Credit Suisse Group AG<br>4.550%, 04/17/26 (b) | 2700000 |  | 2400813 |
|  Deutsche Bank AG<br>2.129%, SOFR + 1.870%, 11/24/26 (a) | 2000000 |  | 1765600 |
|  Discover Bank<br>2.450%, 09/12/24 (b) | 1400000 |  | 1330826 |
|  Fifth Third Bancorp<br>8.250%, 03/01/38 (b) | 1175000 |  | 1458610 |
|  Goldman Sachs Group, Inc. (The)<br>3.210%, SOFR + 1.513%, 04/22/42 (a) | 1600000 |  | 1154976 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 01/26/27 (b) | 1900000 |  | 1810396 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/03/24 (b) | 2000000 |  | 1975260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.223%, 3M LIBOR + 1.301%, 05/01/29 (a) | 1900000 |  | 1773327 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 02/15/33 (b) | 2075000 |  | 2173459 |
|  HSBC Holdings plc<br>3.973%, 3M LIBOR + 1.610%, 05/22/30 (a) (b) | 3500000 |  | 3064950 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 03/14/24 (b) | 1400000 |  | 1376032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 09/15/37 (b) | 1205000 |  | 1235498 |
|  JPMorgan Chase & Co.<br>1.953%, SOFR + 1.065%, 02/04/32 (a) | 2100000 |  | 1612422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.522%, SOFR + 2.040%, 04/22/31 (a) (b) | 2000000 |  | 1639760 |
| **Banks—(Continued)** | **Banks—(Continued)** | **Banks—(Continued)** | **Banks—(Continued)** |
|  JPMorgan Chase & Co. |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.950%, 10/01/26 (b) | 2000000 |  | 1868280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.882%, 3M LIBOR + 1.360%, 07/24/38 (a) (b) | 1000000 |  | 833840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.900%, 07/15/25 (b) | 4700000 |  | 4602381 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.964%, 3M LIBOR + 1.380%, 11/15/48 (a) | 2400000 |  | 1893672 |
|  KeyBank N.A.<br>3.300%, 06/01/25 (b) | 2800000 |  | 2696512 |
|  KFW<br>0.250%, 10/19/23 (b) | 3000000 |  | 2892960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 09/20/24 (b) | 1000000 |  | 932730 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 09/14/29 | 2000000 |  | 1733660 |
|  Landwirtschaftliche Rentenbank<br>2.000%, 01/13/25 (b) | 1500000 |  | 1428810 |
|  Lloyds Banking Group plc<br>3.574%, 3M LIBOR + 1.205%, 11/07/28 (a) (b) | 1800000 |  | 1621746 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.650%, 03/24/26 | 1700000 |  | 1626458 |
|  Mitsubishi UFJ Financial Group, Inc.<br>0.953%, 1Y H15 + 0.550%, 07/19/25 (a) (b) | 2000000 |  | 1860060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 03/01/26 (b) | 1000000 |  | 956790 |
|  Mizuho Financial Group, Inc.<br>4.018%, 03/05/28 (b) | 1800000 |  | 1698696 |
|  Morgan Stanley<br>4.300%, 01/27/45 (b) | 1900000 |  | 1623683 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.350%, 09/08/26 | 3800000 |  | 3698122 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.250%, 04/01/32 | 1850000 |  | 2082045 |
|  PNC Bank N.A.<br>2.950%, 02/23/25 | 4100000 |  | 3939526 |
|  Royal Bank of Canada<br>1.600%, 01/21/25 (b) | 2100000 |  | 1965159 |
|  Sumitomo Mitsui Financial Group, Inc.<br>2.632%, 07/14/26 (b) | 4700000 |  | 4311592 |
|  Toronto-Dominion Bank (The)<br>3.500%, 07/19/23 (b) | 3000000 |  | 2977590 |
|  Truist Financial Corp.<br>1.267%, SOFR + 0.609%, 03/02/27 (a) (b) | 2000000 |  | 1776260 |
|  U.S. Bancorp<br>3.600%, 09/11/24 (b) | 3000000 |  | 2940990 |
|  Wells Fargo & Co.<br>2.879%, 3M LIBOR + 1.432%, 10/30/30 (a) (b) | 2400000 |  | 2046576 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/23/26 (b) | 2000000 |  | 1851960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.013%, SOFR + 4.502%, 04/04/51 (a) | 1000000 |  | 893560 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.606%, 01/15/44 | 2200000 |  | 2141898 |
|  Westpac Banking Corp.<br>2.668%, 5Y H15 + 1.750%, 11/15/35 (a) | 1700000 |  | 1265531 |
|  |  |  | 117053259 |
| **Beverages—0.5%** |  |  |  |
|  Anheuser-Busch InBev Worldwide, Inc.<br>4.439%, 10/06/48 | 1165000 |  | 1001411 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.550%, 01/23/49 | 1900000 |  | 1897777 |
|  Coca-Cola Co. (The)<br>1.650%, 06/01/30 (b) | 2400000 |  | 1966392 |
|  Constellation Brands, Inc.<br>3.150%, 08/01/29 | 1900000 |  | 1669017 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Beverages—(Continued)** | | |
|  Diageo Capital plc<br>2.375%, 10/24/29 (b) | 1400000 | $1198708 |
|  Keurig Dr Pepper, Inc.<br>4.597%, 05/25/28 (b) | 1200000 | 1177548 |
|  PepsiCo, Inc.<br>2.750%, 03/19/30 (b) | 800000 | 709640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.450%, 04/14/46 (b) | 1300000 | 1241006 |
|  |  | 10861499 |
| **Biotechnology—0.3%** |  |  |
|  Amgen, Inc.<br>2.000%, 01/15/32 (b) | 1600000 | 1250864 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.600%, 08/19/26 (b) | 1200000 | 1110252 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.663%, 06/15/51 (b) | 1000000 | 861390 |
|  Biogen, Inc.<br>4.050%, 09/15/25 | 300000 | 291666 |
|  Gilead Sciences, Inc.<br>3.650%, 03/01/26 (b) | 2000000 | 1932760 |
|  |  | 5446932 |
| **Building Materials—0.1%** |  |  |
|  Carrier Global Corp.<br>2.493%, 02/15/27 (b) | 2000000 | 1807120 |
| **Chemicals—0.3%** |  |  |
|  Dow Chemical Co. (The)<br>4.375%, 11/15/42 | 1000000 | 831080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.400%, 05/15/39 | 650000 | 861529 |
|  DuPont de Nemours, Inc.<br>5.419%, 11/15/48 (b) | 1000000 | 960140 |
|  LyondellBasell Industries NV<br>4.625%, 02/26/55 (b) | 1400000 | 1105622 |
|  Nutrien, Ltd.<br>4.200%, 04/01/29 (b) | 1000000 | 942210 |
|  Sherwin-Williams Co. (The)<br>3.450%, 06/01/27 (b) | 1800000 | 1689336 |
|  Westlake Corp.<br>3.125%, 08/15/51 | 500000 | 310040 |
|  |  | 6699957 |
| **Commercial Services—0.3%** |  |  |
|  Global Payments, Inc.<br>2.900%, 05/15/30 (b) | 900000 | 740358 |
|  Massachusetts Institute of Technology<br>2.294%, 07/01/51 | 1200000 | 742344 |
|  PayPal Holdings, Inc.<br>2.850%, 10/01/29 (b) | 2000000 | 1745880 |
|  S&P Global, Inc.<br>2.300%, 08/15/60 | 1600000 | 882864 |
|  Yale University<br>2.402%, 04/15/50 (b) | 2000000 | 1285340 |
|  |  | 5396786 |
| **Computers—0.6%** |  |  |
|  Apple, Inc.<br>2.550%, 08/20/60 (b) | 1000000 | 613560 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.650%, 02/08/51 | 1500000 | 1004805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.350%, 08/08/32 (b) | 2300000 | 2097232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.650%, 02/23/46 (b) | 2700000 | 2575800 |
|  Dell International LLC / EMC Corp.<br>5.300%, 10/01/29 (b) | 1800000 | 1763532 |
|  Hewlett Packard Enterprise Co.<br>4.900%, 10/15/25 | 1400000 | 1386630 |
|  International Business Machines Corp.<br>3.300%, 05/15/26 (b) | 1900000 | 1811403 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/20/42 (b) | 1200000 | 999408 |
|  |  | 12252370 |
| **Cosmetics/Personal Care—0.2%** |  |  |
|  Estee Lauder Cos., Inc. (The)<br>1.950%, 03/15/31 (b) | 1100000 | 891638 |
|  Procter & Gamble Co. (The)<br>3.550%, 03/25/40 (b) | 900000 | 778959 |
|  Unilever Capital Corp.<br>2.900%, 05/05/27 (b) | 1500000 | 1404780 |
|  |  | 3075377 |
| **Diversified Financial Services—1.0%** |  |  |
|  AerCap Ireland Capital DAC / AerCap Global Aviation Trust<br>3.300%, 01/30/32 | 1000000 | 781060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 07/21/27 (b) | 1900000 | 1721324 |
|  Air Lease Corp.<br>2.875%, 01/15/26 (b) | 900000 | 834282 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 02/01/24 (b) | 900000 | 885087 |
|  American Express Co.<br>3.300%, 05/03/27 (b) | 3000000 | 2811840 |
|  BlackRock, Inc.<br>3.500%, 03/18/24 (b) | 3800000 | 3741860 |
|  Capital One Financial Corp.<br>3.800%, 01/31/28 (b) | 1800000 | 1689282 |
|  Charles Schwab Corp. (The)<br>4.625%, 03/22/30 (b) | 900000 | 885834 |
|  Intercontinental Exchange, Inc.<br>3.000%, 06/15/50 (b) | 1000000 | 673370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 12/01/25 (b) | 1000000 | 974570 |
|  Mastercard, Inc.<br>3.350%, 03/26/30 | 1700000 | 1562198 |
|  Nomura Holdings, Inc.<br>2.679%, 07/16/30 | 1000000 | 802290 |
|  Visa, Inc.<br>1.100%, 02/15/31 (b) | 3100000 | 2393386 |
|  |  | 19756383 |
| **Electric—1.9%** |  |  |
|  Appalachian Power Co.<br>3.700%, 05/01/50 (b) | 900000 | 662652 |
|  CenterPoint Energy Houston Electric LLC<br>4.500%, 04/01/44 | 1300000 | 1171716 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Electric—(Continued)** | | |
|  CMS Energy Corp.<br>4.750%, 5Y H15 + 4.116%, 06/01/50 (a) (b) | 1500000 | $1303050 |
|  Commonwealth Edison Co.<br>3.000%, 03/01/50 (b) | 900000 | 622188 |
|  Connecticut Light & Power Co. (The)<br>4.000%, 04/01/48 | 1000000 | 837670 |
|  Consolidated Edison Co. of New York, Inc.<br>3.950%, 03/01/43 | 2070000 | 1662065 |
|  Dominion Energy, Inc.<br>3.900%, 10/01/25 (b) | 1900000 | 1853336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.600%, 03/15/49 (b) | 800000 | 684952 |
|  DTE Electric Co.<br>3.700%, 03/15/45 (b) | 1000000 | 797220 |
|  Duke Energy Carolinas LLC<br>3.550%, 03/15/52 (b) | 1000000 | 755810 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.300%, 02/15/40 (b) | 2000000 | 1987260 |
|  Duke Energy Corp.<br>2.650%, 09/01/26 (b) | 1000000 | 924850 |
|  Entergy Louisiana LLC<br>4.000%, 03/15/33 | 1000000 | 904370 |
|  Evergy, Inc.<br>2.900%, 09/15/29 | 1500000 | 1299870 |
|  Exelon Corp.<br>3.400%, 04/15/26 | 1000000 | 951640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 06/15/35 | 500000 | 511120 |
|  Florida Power & Light Co.<br>5.950%, 02/01/38 | 1700000 | 1815141 |
|  Georgia Power Co.<br>4.300%, 03/15/42 (b) | 2000000 | 1723040 |
|  Louisville Gas and Electric Co.<br>4.250%, 04/01/49 | 800000 | 669672 |
|  MidAmerican Energy Co.<br>3.650%, 04/15/29 (b) | 1700000 | 1596895 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 07/15/49 (b) | 1500000 | 1292430 |
|  National Rural Utilities Cooperative Finance Corp.<br>2.400%, 03/15/30 (b) | 1800000 | 1498320 |
|  Northern States Power Co.<br>6.250%, 06/01/36 | 1200000 | 1296876 |
|  Oncor Electric Delivery Co. LLC<br>3.100%, 09/15/49 | 900000 | 644004 |
|  Pacific Gas and Electric Co.<br>2.500%, 02/01/31 (b) | 3000000 | 2340870 |
|  PG&E Wildfire Recovery Funding LLC<br>4.722%, 06/01/37 | 160000 | 154933 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.212%, 12/01/47 | 1100000 | 1088208 |
|  Public Service Electric and Gas Co.<br>1.900%, 08/15/31 (b) | 1600000 | 1280096 |
|  Sempra Energy<br>3.400%, 02/01/28 | 1100000 | 1021900 |
|  Southern California Edison Co.<br>3.650%, 03/01/28 (b) | 900000 | 842409 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/47 (b) | 1000000 | 789110 |
|  Southwestern Electric Power Co.<br>4.100%, 09/15/28 (b) | 1800000 | 1711026 |
| **Electric—(Continued)** |  |  |
|  Union Electric Co.<br>3.500%, 03/15/29 (b) | 1800000 | 1667592 |
|  |  | 38362291 |
| **Electrical Components & Equipment—0.0%** |  |  |
|  Emerson Electric Co.<br>2.200%, 12/21/31 (b) | 500000 | 405070 |
| **Electronics—0.1%** |  |  |
|  Honeywell International, Inc.<br>2.500%, 11/01/26 (b) | 1800000 | 1663758 |
| **Environmental Control—0.1%** |  |  |
|  Waste Connections, Inc.<br>2.200%, 01/15/32 (b) | 500000 | 398245 |
|  Waste Management, Inc.<br>3.150%, 11/15/27 (b) | 1800000 | 1681668 |
|  |  | 2079913 |
| **Food—0.4%** |  |  |
|  Conagra Brands, Inc.<br>4.850%, 11/01/28 (b) | 1300000 | 1267331 |
|  General Mills, Inc.<br>4.200%, 04/17/28 (b) | 1500000 | 1452855 |
|  Kraft Heinz Foods Co.<br>5.000%, 07/15/35 (b) | 1600000 | 1542288 |
|  Kroger Co. (The)<br>2.200%, 05/01/30 (b) | 1000000 | 812880 |
|  Sysco Corp.<br>6.600%, 04/01/50 | 900000 | 974961 |
|  Tyson Foods, Inc.<br>3.550%, 06/02/27 (b) | 1200000 | 1125624 |
|  |  | 7175939 |
| **Forest Products & Paper—0.1%** |  |  |
|  Georgia-Pacific LLC<br>8.000%, 01/15/24 (b) | 1800000 | 1854054 |
|  International Paper Co.<br>4.400%, 08/15/47 (b) | 800000 | 659880 |
|  |  | 2513934 |
| **Gas—0.1%** |  |  |
|  Atmos Energy Corp.<br>1.500%, 01/15/31 (b) | 1100000 | 858979 |
|  NiSource, Inc.<br>4.800%, 02/15/44 | 1500000 | 1329855 |
|  |  | 2188834 |
| **Hand/Machine Tools—0.1%** |  |  |
|  Stanley Black & Decker, Inc.<br>4.000%, 5Y H15 + 2.657%, 03/15/60 (a) (b) | 2500000 | 2148875 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Healthcare-Products—0.3%** | | |
|  Abbott Laboratories<br>4.750%, 11/30/36 (b) | 1300000 | $1291901 |
|  Boston Scientific Corp.<br>1.900%, 06/01/25 (b) | 1900000 | 1776291 |
|  DH Europe Finance II Sarl<br>3.250%, 11/15/39 | 900000 | 725454 |
|  Medtronic, Inc.<br>4.625%, 03/15/45 (b) | 933000 | 872178 |
|  Stryker Corp.<br>1.150%, 06/15/25 (b) | 1000000 | 915450 |
|  |  | 5581274 |
| **Healthcare-Services—0.5%** |  |  |
|  CommonSpirit Health<br>3.910%, 10/01/50 | 1500000 | 1113825 |
|  Elevance Health, Inc.<br>5.850%, 01/15/36 (b) | 1800000 | 1845378 |
|  HCA, Inc.<br>4.125%, 06/15/29 (b) | 1800000 | 1647576 |
|  Humana, Inc.<br>4.875%, 04/01/30 | 800000 | 782328 |
|  Kaiser Foundation Hospitals<br>3.002%, 06/01/51 (b) | 1000000 | 681410 |
|  Laboratory Corp. of America Holdings<br>3.600%, 02/01/25 (b) | 500000 | 484425 |
|  UnitedHealth Group, Inc.<br>3.500%, 08/15/39 (b) | 900000 | 741429 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 07/15/25 (b) | 2600000 | 2546596 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 06/15/48 (b) | 1000000 | 875690 |
|  |  | 10718657 |
| **Home Builders—0.1%** |  |  |
|  Lennar Corp.<br>4.750%, 11/29/27 (b) | 1300000 | 1253421 |
| **Household Products/Wares—0.0%** |  |  |
|  Kimberly-Clark Corp.<br>3.100%, 03/26/30 (b) | 1100000 | 990055 |
| **Insurance—0.8%** |  |  |
|  Allstate Corp. (The)<br>1.450%, 12/15/30 (b) | 1100000 | 842226 |
|  American International Group, Inc.<br>3.400%, 06/30/30 (b) | 800000 | 707928 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/16/44 (b) | 1100000 | 956945 |
|  AXA S.A.<br>8.600%, 12/15/30 (b) | 1165000 | 1404466 |
|  Berkshire Hathaway Finance Corp.<br>4.200%, 08/15/48 (b) | 1700000 | 1511997 |
|  Berkshire Hathaway, Inc.<br>3.125%, 03/15/26 (b) | 1500000 | 1440315 |
|  Chubb Corp. (The)<br>6.000%, 05/11/37 (b) | 865000 | 920905 |
|  Hartford Financial Services Group, Inc. (The)<br>6.100%, 10/01/41 | 780000 | 788401 |
| **Insurance—(Continued)** |  |  |
|  Marsh & McLennan Cos., Inc.<br>3.750%, 03/14/26 | 2000000 | 1942040 |
|  Principal Financial Group, Inc.<br>3.100%, 11/15/26 | 1000000 | 930190 |
|  Prudential Financial, Inc.<br>2.100%, 03/10/30 (b) | 2000000 | 1662180 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.700%, 12/14/36 (b) | 1525000 | 1580662 |
|  Travelers Cos., Inc. (The)<br>3.050%, 06/08/51 (b) | 800000 | 554240 |
|  |  | 15242495 |
| **Internet—0.4%** |  |  |
|  Alibaba Group Holding, Ltd.<br>4.200%, 12/06/47 (b) | 1400000 | 1079190 |
|  Alphabet, Inc.<br>2.050%, 08/15/50 | 1100000 | 656007 |
|  Amazon.com, Inc.<br>3.100%, 05/12/51 | 1000000 | 720730 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.150%, 08/22/27 | 1000000 | 943550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.800%, 12/05/24 (b) | 1800000 | 1773036 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 08/22/37 | 1900000 | 1693451 |
|  eBay, Inc.<br>3.600%, 06/05/27 (b) | 1500000 | 1418655 |
|  |  | 8284619 |
| **Investment Companies—0.1%** |  |  |
|  Ares Capital Corp.<br>4.250%, 03/01/25 (b) | 900000 | 855909 |
|  Owl Rock Capital Corp.<br>3.400%, 07/15/26 (b) | 1600000 | 1402624 |
|  |  | 2258533 |
| **Iron/Steel—0.0%** |  |  |
|  Vale Overseas, Ltd.<br>6.875%, 11/21/36 | 528000 | 561417 |
| **Lodging—0.0%** |  |  |
|  Marriott International, Inc.<br>2.850%, 04/15/31 | 1100000 | 894025 |
| **Machinery-Construction & Mining—0.1%** |  |  |
|  Caterpillar, Inc.<br>3.803%, 08/15/42 (b) | 1500000 | 1284480 |
| **Machinery-Diversified—0.1%** |  |  |
|  John Deere Capital Corp.<br>2.000%, 06/17/31 (b) | 1000000 | 812620 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 09/08/25 | 2000000 | 1968378 |
|  |  | 2780998 |
| **Media—0.8%** |  |  |
|  Charter Communications Operating LLC / Charter Communications Operating Capital Corp.<br>3.850%, 04/01/61 | 3300000 | 1908951 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.484%, 10/23/45 | 900000 | 813762 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Media—(Continued)** | | |
|  Comcast Corp.<br>3.150%, 03/01/26 (b) | 2000000 | $1905640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.969%, 11/01/47 (b) | 900000 | 721998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.650%, 07/15/42 (b) | 1670000 | 1516694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.650%, 06/15/35 | 1500000 | 1576395 |
|  Discovery Communications LLC<br>3.950%, 03/20/28 (b) | 1100000 | 978978 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/15/55 | 1481000 | 895516 |
|  Fox Corp.<br>5.576%, 01/25/49 (b) | 1000000 | 900730 |
|  Paramount Global<br>4.375%, 03/15/43 | 1500000 | 1041165 |
|  Time Warner Cable LLC<br>6.550%, 05/01/37 | 100000 | 94941 |
|  TWDC Enterprises 18 Corp.<br>2.950%, 06/15/27 (b) | 2000000 | 1866760 |
|  Walt Disney Co. (The)<br>3.500%, 05/13/40 (b) | 900000 | 729432 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 01/13/51 (b) | 1000000 | 774800 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.550%, 03/15/33 | 950000 | 1052572 |
|  |  | 16778334 |
| **Mining—0.2%** |  |  |
|  Newmont Corp.<br>6.250%, 10/01/39 | 1800000 | 1901196 |
|  Rio Tinto Alcan, Inc.<br>6.125%, 12/15/33 (b) | 1751000 | 1876722 |
|  |  | 3777918 |
| **Miscellaneous Manufacturing—0.3%** |  |  |
|  3M Co.<br>3.625%, 10/15/47 | 1000000 | 749450 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/14/48 | 900000 | 713862 |
|  GE Capital International Funding Co.,<br>4.418%, 11/15/35 (b) | 1459000 | 1351443 |
|  General Electric Co.<br>7.500%, 08/21/35 | 100000 | 113200 |
|  Parker-Hannifin Corp.<br>3.250%, 06/14/29 (b) | 1900000 | 1702590 |
|  Trane Technologies Luxembourg Finance S.A.<br>3.800%, 03/21/29 (b) | 1000000 | 924470 |
|  |  | 5555015 |
| **Multi-National—1.3%** |  |  |
|  Asian Development Bank<br>1.500%, 03/04/31 | 2000000 | 1649060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 09/19/29 | 900000 | 776421 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 01/30/24 | 3700000 | 3615381 |
|  Asian Infrastructure Investment Bank (The)<br>0.500%, 05/28/25 | 1000000 | 909130 |
|  European Bank for Reconstruction & Development<br>0.500%, 05/19/25 (b) | 1300000 | 1186783 |
|  European Investment Bank<br>0.375%, 03/26/26 (b) | 2000000 | 1766640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 02/10/25 (b) | 1000000 | 949340 |
| **Multi-National—(Continued)** |  |  |
|  European Investment Bank |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/15/24 (b) | 1800000 | 1739106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 02/15/36 | 1100000 | 1177506 |
|  Inter-American Development Bank<br>2.125%, 01/15/25 | 2000000 | 1910340 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 06/18/29 | 1400000 | 1252202 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 07/07/27 | 1500000 | 1391280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 06/15/25 | 200000 | 211270 |
|  International Bank for Reconstruction & Development<br>0.500%, 10/28/25 | 2000000 | 1798400 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 11/03/31 | 2600000 | 2141620 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 03/03/25 | 2000000 | 1908240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/29/25 | 2000000 | 1910600 |
|  |  | 26293319 |
| **Office/Business Equipment—0.1%** |  |  |
|  CDW LLC / CDW Finance Corp.<br>4.250%, 04/01/28 (b) | 1100000 | 1012022 |
| **Oil & Gas—0.9%** |  |  |
|  BP Capital Markets America, Inc.<br>2.721%, 01/12/32 (b) | 1000000 | 840270 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/24/50 | 1000000 | 676060 |
|  Canadian Natural Resources, Ltd.<br>6.250%, 03/15/38 (b) | 1800000 | 1795194 |
|  Chevron Corp.<br>2.954%, 05/16/26 (b) | 1500000 | 1425150 |
|  ConocoPhillips Co.<br>6.950%, 04/15/29 | 700000 | 776412 |
|  Equinor ASA<br>3.250%, 11/10/24 (b) | 2100000 | 2048886 |
|  Exxon Mobil Corp.<br>3.176%, 03/15/24 (b) | 900000 | 883053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.114%, 03/01/46 (b) | 1600000 | 1371808 |
|  Marathon Oil Corp.<br>6.600%, 10/01/37 (b) | 1000000 | 998500 |
|  Marathon Petroleum Corp.<br>4.700%, 05/01/25 | 600000 | 591600 |
|  Phillips 66<br>4.875%, 11/15/44 | 1000000 | 923470 |
|  Shell International Finance B.V.<br>2.375%, 11/07/29 (b) | 3000000 | 2600730 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 04/06/50 (b) | 900000 | 655407 |
|  TotalEnergies Capital International S.A.<br>3.127%, 05/29/50 | 900000 | 642969 |
|  Valero Energy Corp.<br>3.400%, 09/15/26 (b) | 1000000 | 942110 |
|  |  | 17171619 |
| **Oil & Gas Services—0.1%** |  |  |
|  Halliburton Co.<br>5.000%, 11/15/45 (b) | 1200000 | 1070388 |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Pharmaceuticals—1.4%** | | |
|  AbbVie, Inc.<br>3.800%, 03/15/25 (b) | 400000 | $390100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 11/21/39 | 1300000 | 1119651 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.400%, 11/06/42 (b) | 2200000 | 1921700 |
|  AstraZeneca plc<br>4.000%, 09/18/42 | 1200000 | 1044144 |
|  Becton Dickinson & Co.<br>4.669%, 06/06/47 | 2000000 | 1769140 |
|  Bristol-Myers Squibb Co.<br>3.400%, 07/26/29 (b) | 1000000 | 930850 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 05/15/44 | 2000000 | 1848480 |
|  Cardinal Health, Inc.<br>3.410%, 06/15/27 (b) | 1800000 | 1686456 |
|  Cigna Corp.<br>2.375%, 03/15/31 (b) | 1500000 | 1230120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/25/26 | 1200000 | 1183908 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 11/15/41 | 313000 | 326788 |
|  CVS Health Corp.<br>4.300%, 03/25/28 | 544000 | 527092 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.780%, 03/25/38 | 1500000 | 1381185 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.050%, 03/25/48 (b) | 1500000 | 1353315 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/20/45 | 900000 | 822321 |
|  GlaxoSmithKline Capital, Inc.<br>3.875%, 05/15/28 (b) | 1000000 | 961590 |
|  Johnson & Johnson<br>3.700%, 03/01/46 (b) | 1000000 | 846220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 08/15/37 | 910000 | 1016980 |
|  Merck & Co., Inc.<br>6.550%, 09/15/37 | 1000000 | 1148640 |
|  Merck Sharp & Dohme Corp.<br>5.950%, 12/01/28 | 300000 | 320544 |
|  Novartis Capital Corp.<br>2.200%, 08/14/30 (b) | 1900000 | 1620320 |
|  Shire Acquisitions Investments Ireland DAC<br>3.200%, 09/23/26 (b) | 2000000 | 1882300 |
|  Wyeth LLC<br>5.950%, 04/01/37 | 1800000 | 1952352 |
|  |  | 27284196 |
| **Pipelines—0.8%** |  |  |
|  El Paso Natural Gas Co. LLC<br>8.375%, 06/15/32 | 220000 | 250831 |
|  Enbridge Energy Partners L.P.<br>5.875%, 10/15/25 (b) | 2000000 | 2034580 |
|  Energy Transfer L.P.<br>5.150%, 03/15/45 | 2600000 | 2165540 |
|  Enterprise Products Operating LLC<br>3.200%, 02/15/52 (b) | 1100000 | 728794 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.950%, 02/15/27 (b) | 2300000 | 2208460 |
|  Kinder Morgan Energy Partners L.P.<br>6.500%, 02/01/37 | 2000000 | 2033300 |
|  MPLX L.P.<br>5.200%, 03/01/47 (b) | 1000000 | 852660 |
|  ONEOK, Inc.<br>3.100%, 03/15/30 (b) | 1100000 | 925397 |
| **Pipelines—(Continued)** |  |  |
|  Sabine Pass Liquefaction LLC<br>5.875%, 06/30/26 | 1600000 | 1619616 |
|  TransCanada PipeLines, Ltd.<br>6.200%, 10/15/37 | 1800000 | 1843920 |
|  Williams Cos., Inc. (The)<br>3.750%, 06/15/27 (b) | 1500000 | 1416090 |
|  |  | 16079188 |
| **Real Estate Investment Trusts—0.8%** |  |  |
|  Alexandria Real Estate Equities, Inc.<br>3.375%, 08/15/31 (b) | 1000000 | 877990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.550%, 03/15/52 | 1100000 | 792792 |
|  AvalonBay Communities, Inc.<br>2.300%, 03/01/30 (b) | 1000000 | 833410 |
|  Boston Properties L.P.<br>3.200%, 01/15/25 (b) | 1400000 | 1342614 |
|  Brixmor Operating Partnership L.P.<br>4.050%, 07/01/30 (b) | 900000 | 793818 |
|  Crown Castle, Inc.<br>3.800%, 02/15/28 (b) | 1500000 | 1395105 |
|  Digital Realty Trust L.P.<br>3.700%, 08/15/27 (b) | 1500000 | 1396395 |
|  Equinix, Inc.<br>3.200%, 11/18/29 (b) | 700000 | 611422 |
|  ERP Operating L.P.<br>3.000%, 07/01/29 (b) | 1000000 | 874070 |
|  Essex Portfolio L.P.<br>3.000%, 01/15/30 (b) | 1000000 | 848170 |
|  Healthpeak Properties, Inc.<br>3.500%, 07/15/29 | 900000 | 802422 |
|  National Retail Properties, Inc.<br>2.500%, 04/15/30 | 1000000 | 811900 |
|  Prologis L.P.<br>3.375%, 12/15/27 (b) | 500000 | 468025 |
|  Public Storage<br>3.094%, 09/15/27 (b) | 500000 | 466795 |
|  Simon Property Group L.P.<br>3.300%, 01/15/26 (b) | 2800000 | 2666300 |
|  Welltower, Inc.<br>4.000%, 06/01/25 (b) | 1500000 | 1462620 |
|  |  | 16443848 |
| **Retail—0.6%** |  |  |
|  Home Depot, Inc. (The)<br>3.000%, 04/01/26 (b) | 1800000 | 1714896 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 04/01/46 (b) | 2000000 | 1747480 |
|  Lowe's Cos., Inc.<br>4.050%, 05/03/47 | 1500000 | 1182795 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 04/01/52 | 1100000 | 883949 |
|  McDonald's Corp.<br>4.875%, 12/09/45 (b) | 1500000 | 1399245 |
|  Starbucks Corp.<br>3.550%, 08/15/29 (b) | 1000000 | 924520 |
|  Target Corp.<br>2.650%, 09/15/30 (b) | 1400000 | 1205008 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Retail—(Continued)** | | |
|  Walmart, Inc.<br>3.900%, 09/09/25 (b) | 1000000 | $986090 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.050%, 06/29/48 | 900000 | 806400 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 09/01/35 | 935000 | 987846 |
|  |  | 11838229 |
| **Semiconductors—0.3%** |  |  |
|  Broadcom, Inc.<br>3.137%, 11/15/35 (144A) | 1600000 | 1182128 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 11/15/32 (b) | 1700000 | 1505435 |
|  Intel Corp.<br>4.750%, 03/25/50 (b) | 1800000 | 1576278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.900%, 08/05/52 (b) | 1000000 | 892630 |
|  QUALCOMM, Inc.<br>1.650%, 05/20/32 (b) | 2333000 | 1805182 |
|  |  | 6961653 |
| **Software—0.9%** |  |  |
|  Fidelity National Information Services, Inc.<br>1.150%, 03/01/26 (b) | 1000000 | 878780 |
|  Fiserv, Inc.<br>2.750%, 07/01/24 (b) | 2000000 | 1930160 |
|  Microsoft Corp.<br>3.125%, 11/03/25 (b) | 5100000 | 4931037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 02/06/47 (b) | 2000000 | 1887120 |
|  Oracle Corp.<br>2.875%, 03/25/31 (b) | 3000000 | 2497110 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.950%, 11/15/24 (b) | 2300000 | 2214486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.950%, 04/01/30 (b) | 1200000 | 1026888 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 04/01/60 | 2100000 | 1410423 |
|  Salesforce.com, Inc.<br>2.900%, 07/15/51 (b) | 1000000 | 669330 |
|  |  | 17445334 |
| **Telecommunications—1.1%** |  |  |
|  America Movil S.A.B. de C.V.<br>2.875%, 05/07/30 | 1000000 | 858170 |
|  AT&T, Inc.<br>3.500%, 09/15/53 | 1221000 | 832905 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 09/15/59 (b) | 2686000 | 1826400 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.100%, 02/15/28 (b) | 2687000 | 2562108 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.150%, 11/15/46 | 1308000 | 1182772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 12/15/31 | 100000 | 110369 |
|  Cisco Systems, Inc.<br>5.500%, 01/15/40 | 1000000 | 1047020 |
|  Deutsche Telekom International Finance B.V.<br>8.750%, 06/15/30 | 1000000 | 1183490 |
|  Orange S.A.<br>5.500%, 02/06/44 (b) | 500000 | 495090 |
|  Rogers Communications, Inc.<br>2.900%, 11/15/26 (b) | 1100000 | 1005334 |
|  T-Mobile USA, Inc.<br>2.550%, 02/15/31 (b) | 2200000 | 1798016 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.300%, 02/15/51 | 1500000 | 1000635 |
| **Telecommunications—(Continued)** |  |  |
|  Telefonica Emisiones S.A.<br>4.103%, 03/08/27 (b) | 900000 | 853749 |
|  Verizon Communications, Inc.<br>2.875%, 11/20/50 | 1900000 | 1198520 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.376%, 02/15/25 (b) | 2078000 | 2015515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.550%, 03/22/51 (b) | 1000000 | 721070 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.812%, 03/15/39 | 1927000 | 1778929 |
|  Vodafone Group plc<br>6.150%, 02/27/37 | 2170000 | 2206217 |
|  |  | 22676309 |
| **Transportation—0.5%** |  |  |
|  Burlington Northern Santa Fe LLC<br>4.150%, 04/01/45 | 1900000 | 1635843 |
|  Canadian National Railway Co.<br>4.450%, 01/20/49 (b) | 400000 | 361464 |
|  Canadian Pacific Railway Co.<br>2.450%, 12/02/31 (b) | 1100000 | 918951 |
|  CSX Corp.<br>6.150%, 05/01/37 | 1600000 | 1714400 |
|  FedEx Corp.<br>4.250%, 05/15/30 (b) | 1000000 | 941170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, 04/01/46 | 1000000 | 817180 |
|  Norfolk Southern Corp.<br>2.550%, 11/01/29 | 1000000 | 859330 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.590%, 05/17/25 | 28000 | 28248 |
|  Union Pacific Corp.<br>2.891%, 04/06/36 (b) | 1200000 | 955416 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 02/05/50 | 1300000 | 952068 |
|  United Parcel Service, Inc.<br>4.450%, 04/01/30 (b) | 1600000 | 1578768 |
|  |  | 10762838 |
| **Water—0.0%** |  |  |
|  American Water Capital Corp.<br>3.750%, 09/01/28 (b) | 900000 | 851049 |
|  Total Corporate Bonds & Notes <br>(Cost $603,551,661) |  | 517881447 |
| **Foreign Government—1.5%** |  |  |
| **Provincial—0.3%** |  |  |
|  Province of Alberta Canada<br>1.000%, 05/20/25 (b) | 1500000 | 1381845 |
|  Province of British Columbia Canada<br>1.300%, 01/29/31 (b) | 1000000 | 799660 |
|  Province of Ontario Canada<br>3.050%, 01/29/24 (b) | 1000000 | 981290 |
|  Province of Quebec Canada<br>2.500%, 04/20/26 (b) | 2000000 | 1885080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 07/15/23 | 350000 | 354666 |
|  |  | 5402541 |

---

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Foreign Government—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Sovereign—1.2%** | | | |
|  Canada Government International Bond<br>1.625%, 01/22/25 (b) | 1000000 | $| 946090 |
|  Chile Government International Bonds<br>3.100%, 01/22/61 | 1200000 |  | 752232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/25/50 (b) | 1000000 |  | 728260 |
|  Export-Import Bank of Korea<br>2.875%, 01/21/25 | 1400000 |  | 1342796 |
|  Indonesia Government International Bonds<br>3.050%, 03/12/51 (b) | 1100000 |  | 799821 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.850%, 10/15/30 (b) | 700000 |  | 660709 |
|  Israel Government International Bond<br>4.125%, 01/17/48 | 1000000 |  | 878830 |
|  Italy Government International Bond<br>2.875%, 10/17/29 (b) | 2000000 |  | 1661720 |
|  Japan Bank for International Cooperation<br>2.500%, 05/23/24 (b) | 3900000 |  | 3773562 |
|  Mexico Government International Bonds<br>4.600%, 01/23/46 | 1100000 |  | 859749 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 03/08/44 | 900000 |  | 728766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 10/12/10 (b) | 1000000 |  | 845220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.750%, 09/27/34 (b) | 1050000 |  | 1103077 |
|  Panama Government International Bonds<br>3.875%, 03/17/28 (b) | 900000 |  | 851787 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/15/47 | 1400000 |  | 1083124 |
|  Peruvian Government International Bond<br>8.750%, 11/21/33 | 1450000 |  | 1777323 |
|  Philippine Government International Bonds<br>3.950%, 01/20/40 | 1100000 |  | 934087 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/13/37 (b) | 1740000 |  | 1700102 |
|  Poland Government International Bond<br>3.250%, 04/06/26 | 1000000 |  | 959900 |
|  Svensk Exportkredit AB<br>0.625%, 05/14/25 | 1000000 |  | 912770 |
|  Uruguay Government International Bond<br>4.375%, 10/27/27 | 1900000 |  | 1921698 |
|  |  |  | 25221623 |
|  Total Foreign Government <br>(Cost $35,232,499) |  |  | 30624164 |
| **Mortgage-Backed Securities—1.0%** | **Mortgage-Backed Securities—1.0%** | **Mortgage-Backed Securities—1.0%** | **Mortgage-Backed Securities—1.0%** |
| **Commercial Mortgage-Backed Securities—1.0%** |  |  |  |
|  BANK<br>2.556%, 05/15/64 | 2000000 |  | 1653069 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.758%, 09/15/62 | 385190 |  | 331923 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.407%, 11/15/61 (a) | 881000 |  | 844164 |
|  Benchmark Mortgage Trust<br>3.049%, 12/15/62 | 1430000 |  | 1257349 |
|  CD Commercial Mortgage Trust<br>3.631%, 02/10/50 | 950000 |  | 885010 |
|  CFCRE Commercial Mortgage Trust<br>3.585%, 12/10/54 | 1726123 |  | 1604997 |
|  Commercial Mortgage Pass-Through Certificates Mortgage Trust<br>3.765%, 02/10/49 | 1539000 |  | 1462312 |
| **Commercial Mortgage-Backed Securities—(Continued)** |  |  |  |
|  GS Mortgage Securities Trust<br>3.382%, 05/10/50 | 1835000 |  | 1741884 |
|  JPMBB Commercial Mortgage Securities Trust<br>3.598%, 11/15/48 | 1400000 |  | 1326252 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.801%, 08/15/48 | 1331711 |  | 1276521 |
|  Morgan Stanley Bank of America Merrill Lynch Trust<br>3.544%, 01/15/49 | 2350000 |  | 2211422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.635%, 10/15/48 | 1547000 |  | 1468995 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.732%, 05/15/48 | 1750000 |  | 1668383 |
|  UBS Commercial Mortgage Trust<br>3.035%, 12/15/52 | 2250000 |  | 1948523 |
|  Total Mortgage-Backed Securities <br>(Cost $22,537,044) |  |  | 19680804 |
| **Municipals—0.5%** |  |  |  |
|  Chicago O'Hare International Airport<br>4.572%, 01/01/54 | 395000 |  | 348243 |
|  Grand Parkway Transportation Corp.<br>3.236%, 10/01/52 | 1000000 |  | 709024 |
|  Los Angeles, CA Unified School District, Build America Bond<br>6.758%, 07/01/34 | 660000 |  | 738347 |
|  Municipal Electric Authority of Georgia, Build America Bond<br>6.637%, 04/01/57 | 1925000 |  | 2059253 |
|  New Jersey Turnpike Authority<br>7.414%, 01/01/40 | 1700000 |  | 2107377 |
|  New York City Water & Sewer System<br>5.440%, 06/15/43 | 300000 |  | 311772 |
|  Port Authority of New York & New Jersey<br>4.458%, 10/01/62 | 1500000 |  | 1301611 |
|  Regents of the University of California Medical Center Pooled Revenue<br>3.006%, 05/15/50 | 1000000 |  | 660388 |
|  State of California General Obligation Unlimited, Build America Bond<br>7.300%, 10/01/39 | 1200000 |  | 1457849 |
|  State of Illinois, General Obligation Unlimited<br>5.100%, 06/01/33 | 1230000 |  | 1180479 |
|  Total Municipals <br>(Cost $12,803,253) |  |  | 10874343 |
| **Asset-Backed Securities—0.4%** |  |  |  |
| **Asset-Backed - Automobile—0.2%** |  |  |  |
|  CarMax Auto Owner Trust<br>0.740%, 01/15/27 | 1085000 |  | 979840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.030%, 06/16/25 | 903000 |  | 873766 |
|  GM Financial Consumer Automobile Receivables Trust<br>2.210%, 11/18/24 | 931423 |  | 925822 |
|  Honda Auto Receivables Owner Trust<br>1.090%, 10/15/26 | 1500000 |  | 1451981 |
|  |  |  | 4231409 |
| **Asset-Backed - Credit Card—0.1%** |  |  |  |
|  Capital One Multi-Asset Execution Trust<br>2.060%, 08/15/28 | 1865000 |  | 1703415 |

---

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Other—0.1%** | | | |
|  CNH Equipment Trust<br>1.160%, 06/16/25 | 105277 | $| 103881 |
|  John Deere Owner Trust<br>0.510%, 11/15/24 | 56947 |  | 56041 |
|  Verizon Master Trust<br>0.990%, 04/20/28 | 1000000 |  | 932199 |
|  |  |  | 1092121 |
|  Total Asset-Backed Securities <br>(Cost $7,530,059) |  |  | 7026945 |
| **Short-Term Investments—0.5%** |  |  |  |
| **U.S. Treasury—0.5%** |  |  |  |
|  U.S. Treasury Bills<br>3.531%, 01/17/23 (c) | 4200000 |  | 4193991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.563%, 01/24/23 (c) | 5100000 |  | 5088574 |
|  Total Short-Term Investments <br>(Cost $9,281,185) |  |  | 9282565 |
| **Securities Lending Reinvestments (d)—17.8%** | **Securities Lending Reinvestments (d)—17.8%** | **Securities Lending Reinvestments (d)—17.8%** | **Securities Lending Reinvestments (d)—17.8%** |
| **Certificates of Deposit—7.0%** |  |  |  |
|  Bank of Montreal<br>4.710%, SOFR + 0.410%, 04/04/23 (a) | 5000000 |  | 4999922 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.090%, SOFR + 0.790%, 11/08/23 (a) | 1000000 |  | 1001351 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (a) | 10000000 |  | 10000000 |
|  Bank of Nova Scotia<br>4.550%, SOFR + 0.250%, 02/17/23 (a) | 4000000 |  | 3999819 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.770%, FEDEFF PRV + 0.440%, 01/09/23 (a) | 2000000 |  | 2000081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (a) | 6000000 |  | 6002522 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (a) | 2000000 |  | 2002338 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (a) | 10000000 |  | 9999980 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (a) | 5000000 |  | 5001740 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.800%, SOFR + 0.500%, 03/03/23 (a) | 4000000 |  | 4001531 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (a) | 5000000 |  | 5000355 |
|  Commonwealth Bank of Australia<br>4.680%, SOFR + 0.380%, 03/30/23 (a) | 2000000 |  | 2000148 |
|  Cooperatieve Rabobank UA<br>4.830%, SOFR + 0.530%, 02/01/23 (a) | 5000000 |  | 5001045 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (a) | 5000000 |  | 5001500 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (a) | 3000000 |  | 3000901 |
|  MUFG Bank Ltd. (NY)<br>4.700%, SOFR + 0.400%, 04/13/23 (a) | 3000000 |  | 3000270 |
|  Natixis S.A. (New York)<br>4.800%, SOFR + 0.500%, 02/13/23 (a) | 5000000 |  | 5001973 |
|  Nordea Bank Abp (NY)<br>4.760%, SOFR + 0.460%, 02/13/23 (a) | 4000000 |  | 4000684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 02/27/23 (a) | 5000000 |  | 5001385 |
| **Certificates of Deposit—(Continued)** |  |  |  |
|  Rabobank (London)<br>4.830%, SOFR + 0.530%, 05/16/23 (a) | 6000000 |  | 6000000 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (a) | 10000000 |  | 9999840 |
|  Standard Chartered Bank (NY)<br>4.860%, FEDEFF PRV + 0.530%, 01/17/23 (a) | 2000000 |  | 2000246 |
|  State Street Bank and Trust Co.<br>4.980%, SOFR + 0.680%, 07/14/23 (a) | 2000000 |  | 2002354 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (a) | 6000000 |  | 6000660 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (a) | 5000000 |  | 5001640 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.840%, SOFR + 0.540%, 01/10/23 (a) | 3000000 |  | 3000234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (a) | 5000000 |  | 5001390 |
|  Svenska Handelsbanken AB<br>4.900%, SOFR + 0.600%, 04/12/23 (a) | 3000000 |  | 3002037 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (a) | 5000000 |  | 4999781 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (a) | 5000000 |  | 4999450 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (a) | 2000000 |  | 2000682 |
|  |  |  | 140025859 |
| **Commercial Paper—1.0%** |  |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (a) | 8000000 |  | 8010896 |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (a) | 5000000 |  | 5001350 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (a) | 2000000 |  | 2001976 |
|  UBS AG<br>4.870%, SOFR + 0.570%, 03/23/23 (a) | 5000000 |  | 5000000 |
|  |  |  | 20014222 |
| **Master Demand Notes—0.4%** |  |  |  |
|  Bank of America N.A.<br>4.880%, SOFR + 0.580%, 05/15/23 (a) | 3000000 |  | 2999966 |
|  Natixis Financial Products LLC<br>4.670%, OBFR + 0.350%, 02/03/23 (a) | 5000000 |  | 5000000 |
|  |  |  | 7999966 |
| **Repurchase Agreements—8.0%** |  |  |  |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $23,344,833; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $23,800,623. | 23333944 |  | 23333944 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $6,150,158; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $6,120,001. | 6000000 |  | 6000000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (d)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | | |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $2,040,963. | 2000000 | $2000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $11,228,086; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $11,490,576. | 11222699 | 11222699 |
| National Bank of Canada | National Bank of Canada | National Bank of Canada |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $20,016,800; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $20,447,564. | 20000000 | 20000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $45,038,938; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $48,997,284. | 45000000 | 45000000 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $8,036,167; collateralized by various Common Stock with an aggregate market value of $8,890,037. | 8000000 | 8000000 |
| Societe Generale | Societe Generale | Societe Generale |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $1,700,803; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $1,737,071. | 1700000 | 1700000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $29,014,210; collateralized by various Common Stock with an aggregate market value of $32,281,531. | 29000000 | 29000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $8,307,133; collateralized by various Common Stock with an aggregate market value of $9,239,493. | 8300000 | 8300000 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $6,849,008; collateralized by various Common Stock with an aggregate market value of $7,642,322. | 6845662 | 6845662 |
|  |  | 161402305 |
| **Time Deposits—0.4%** |  |  |
|  Canadian Imperial Bank London<br>4.250%, 01/03/23 | 2000000 | 2000000 |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (a) | 5000000 | 5000000 |
|  |  | 7000000 |
| **Mutual Funds—1.0%** |  |  |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (e) | 2000000 | 2000000 |
|  Fidelity Investments Money Market Government Portfolio, Class I 4.060% (e) | 6213056 | 6213056 |
|  HSBC U.S. Government Money Market Fund, Class I 4.130% (e) | 1000000 | 1000000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (e) | 7000000 | 7000000 |
|  STIT-Government & Agency Portfolio, Institutional Class<br>4.220% (e) | 3000000 | 3000000 |
|  |  | 19213056 |
|  Total Securities Lending Reinvestments <br>(Cost $355,615,361) |  | 355655408 |
|  Total Investments—117.8% <br>(Cost $2,653,481,070) |  | 2362248996 |
|  Other assets and liabilities (net)—(17.8)% |  | (356110918) |
| **Net Assets—100.0%** |  | $2006138078 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $391,536,827 and the collateral received consisted of cash in the amount of $355,615,361 and non-cash collateral with a value of $54,346,868. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) The rate shown represents current yield to maturity.

(d) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(e) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(144A) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $1,182,128, which is 0.1% of net assets.

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Glossary of Abbreviations** 

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (H15)— | U.S. Treasury Yield Curve Rate T-Note<br>Constant Maturity Index |
| (LIBOR)— | London Interbank Offered Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

Other Abbreviations

------

(ACES)— Alternative Credit Enhancement Securities <br> (DAC)— Designated Activity Company

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total U.S. Treasury & Government Agencies\* | $— | $1411223320 | $— | $1411223320 |
|  Total Corporate Bonds & Notes\* |  | 517881447 |  | 517881447 |
|  Total Foreign Government\* |  | 30624164 |  | 30624164 |
|  Total Mortgage-Backed Securities\* |  | 19680804 |  | 19680804 |
|  Total Municipals\* |  | 10874343 |  | 10874343 |
|  Total Asset-Backed Securities\* |  | 7026945 |  | 7026945 |
|  Total Short-Term Investments\* |  | 9282565 |  | 9282565 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 140025859 |  | 140025859 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 20014222 |  | 20014222 |
| &nbsp;&nbsp;&nbsp;&nbsp; Master Demand Notes |  | 7999966 |  | 7999966 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 161402305 |  | 161402305 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposits |  | 7000000 |  | 7000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 19213056 |  |  | 19213056 |
|  Total Securities Lending Reinvestments | 19213056 | 336442352 |  | 355655408 |
|  Total Investments | $19213056 | $2343035940 | $— | $2362248996 |
|  Collateral for Securities Loaned (Liability) | $— | $(355615361) | $— | $(355615361) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $2362248996 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 12113251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 7211125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal paydowns | 320480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 12409410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 8247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 2394311509 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 89933 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 355615361 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 20010490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 11350682 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 421888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 205967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 327087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 388173431 |
|  **Net Assets** | $2006138078 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $2339088165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (332950087) |
|  **Net Assets** | $2006138078 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1091742777 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 566928189 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 37579410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 309887702 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 117152654 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 62293278 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 4057157 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 34206801 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $9.32 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 9.10 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 9.26 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 9.06 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $2,653,481,070.

(b) Includes securities loaned at value of $391,536,827.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | $53113324 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 805529 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 53918853 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 5624437 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 97200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 256846 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 1586411 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 62333 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class G | 982939 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 69263 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 109410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 18969 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 22567 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 8885030 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (162593) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 8722437 |
|  **Net Investment Income** | 45196416 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
|  Net realized loss on investments | (27037461) |
|  Net change in unrealized depreciation on investments | (356020064) |
|  Net realized and unrealized gain (loss) | (383057525) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(337861109) |

---

*See accompanying notes to financial statements.* 

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $45196416 | $42832986 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (27037461) | 21924439 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (356020064) | (124951534) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (337861109) | (60194109) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (34952394) | (37560500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (16379847) | (18437606) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (1094280) | (1221794) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class G | (8214915) | (9059502) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (60641436) | (66279402) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (251501385) | (63704576) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (650003930) | (190178087) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 2656142008 | 2846320095 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $2006138078 | $2656142008 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2918996 | $28524797 | $9038440 | $101162866 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3690855 | 34952394 | 3417698 | 37560500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (22551286) | (219682691) | (18979112) | (212533899) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (15941435) | $(156205500) | (6522974) | $(73810533) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1679657 | $16058791 | 5052730 | $55391915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 1768882 | 16379847 | 1715126 | 18437606 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (11222408) | (108158305) | (6933938) | (75614135) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (7773869) | $(75719667) | (166082) | $(1784614) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 153247 | $1523933 | 459319 | $5127048 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 116166 | 1094280 | 111784 | 1221794 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (609103) | (5976760) | (499601) | (5533266) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (339690) | $(3358547) | 71502 | $815576 |
|  **Class G** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 3292560 | $30939202 | 4554649 | $49776555 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 890989 | 8214915 | 846682 | 9059502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (5716471) | (55371788) | (4385288) | (47761062) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (1532922) | $(16217671) | 1016043 | $11074995 |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(251501385) |  | $(63704576) |

---

*See accompanying notes to financial statements.* 

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.04 | $11.55 | $11.10 | $10.55 | $10.90 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.21 | 0.19 | 0.24 | 0.28 | 0.28 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.65) | (0.41) | 0.56 | 0.62 | (0.31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.44) | (0.22) | 0.80 | 0.90 | (0.03) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.28) | (0.29) | (0.35) | (0.35) | (0.32) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.28) | (0.29) | (0.35) | (0.35) | (0.32) |
|  **Net Asset Value, End of Period** | $9.32 | $11.04 | $11.55 | $11.10 | $10.55 |
|  **Total Return (%)** (b) | (13.09) | (1.93) | 7.21 | 8.64 | (0.18) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
|  Net ratio of expenses to average net assets (%) (c) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.13 | 1.69 | 2.12 | 2.60 | 2.69 |
|  Portfolio turnover rate (%) | 15 | 28 | 34 | 20 | 19 |
|  Net assets, end of period (in millions) | $1091.7 | $1469.1 | $1613.2 | $1355.4 | $1293.6 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $10.78 | $11.29 | $10.85 | $10.32 | $10.67 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.18 | 0.16 | 0.21 | 0.25 | 0.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.61) | (0.41) | 0.55 | 0.60 | (0.30) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.43) | (0.25) | 0.76 | 0.85 | (0.05) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.25) | (0.26) | (0.32) | (0.32) | (0.30) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.25) | (0.26) | (0.32) | (0.32) | (0.30) |
|  **Net Asset Value, End of Period** | $9.10 | $10.78 | $11.29 | $10.85 | $10.32 |
|  **Total Return (%)** (b)  | (13.31) | (2.22) | 7.01 | 8.34 | (0.45) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 |
|  Net ratio of expenses to average net assets (%) (c) | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.87 | 1.44 | 1.88 | 2.35 | 2.44 |
|  Portfolio turnover rate (%) | 15 | 28 | 34 | 20 | 19 |
|  Net assets, end of period (in millions) | $566.9 | $755.3 | $793.0 | $796.6 | $824.8 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $10.97 | $11.48 | $11.03 | $10.49 | $10.84 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.19 | 0.17 | 0.23 | 0.27 | 0.27 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.64) | (0.41) | 0.55 | 0.60 | (0.31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.45) | (0.24) | 0.78 | 0.87 | (0.04) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.26) | (0.27) | (0.33) | (0.33) | (0.31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.26) | (0.27) | (0.33) | (0.33) | (0.31) |
|  **Net Asset Value, End of Period** | $9.26 | $10.97 | $11.48 | $11.03 | $10.49 |
|  **Total Return (%)** (b) | (13.25) | (2.08) | 7.10 | 8.41 | (0.34) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 |
|  Net ratio of expenses to average net assets (%) (c) | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.98 | 1.54 | 1.98 | 2.45 | 2.54 |
|  Portfolio turnover rate (%) | 15 | 28 | 34 | 20 | 19 |
|  Net assets, end of period (in millions) | $37.6 | $48.2 | $49.7 | $49.1 | $52.3 |
|  | **Class G** | **Class G** | **Class G** | **Class G** | **Class G** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $10.73 | $11.24 | $10.81 | $10.28 | $10.63 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.18 | 0.15 | 0.20 | 0.24 | 0.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.61) | (0.40) | 0.54 | 0.61 | (0.31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.43) | (0.25) | 0.74 | 0.85 | (0.06) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.24) | (0.26) | (0.31) | (0.32) | (0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.24) | (0.26) | (0.31) | (0.32) | (0.29) |
|  **Net Asset Value, End of Period** | $9.06 | $10.73 | $11.24 | $10.81 | $10.28 |
|  **Total Return (%)** (b) | (13.33) | (2.26) | 6.89 | 8.34 | (0.49) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 |
|  Net ratio of expenses to average net assets (%) (c) | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.83 | 1.39 | 1.82 | 2.30 | 2.39 |
|  Portfolio turnover rate (%) | 15 | 28 | 34 | 20 | 19 |
|  Net assets, end of period (in millions) | $309.9 | $383.5 | $390.4 | $333.9 | $312.2 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Aggregate Bond Index Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued based upon evaluated or composite bid quotations obtained from pricing services selected by the Adviser. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees"). A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $89,933 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Mortgage-Related and Other Asset-Backed Securities -** The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities ("SMBS"), and other securities that directly or

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or "IO" class), while the other class will receive all of the principal (the principal-only or "PO" class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio's Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

**When-Issued and Delayed-Delivery Securities -** The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $161,402,305, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes | $(168787323) | $— | $— | $— | $(168787323) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Government | (6178600) |  |  |  | (6178600) |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury & Government Agencies | (180649438) |  |  |  | (180649438) |
|  **Total Borrowings** | $**(355615361)** | $**—** | $**—** | $**—** | $**(355615361)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(355615361) |

---

**3. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

*LIBOR Replacement Risk:* Many financial instruments use or may use a floating rate based on LIBOR, which is the offered rate at which major international banks can obtain wholesale, unsecured funding. LIBOR may be a significant factor in determining the Portfolio's payment obligations under a derivative investment, the cost of financing to the Portfolio or an investment's value or return to the Portfolio, and may be used in other ways that affect the Portfolio's investment performance. In 2017, the UK Financial Conduct Authority (FCA) announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Index Average for GBP LIBOR). Various financial industry groups have been planning for the transition away from LIBOR and markets are developing in response to these new rates, but there are concerns around liquidity of the new rates and obstacles to converting certain securities and transactions to new rates. Neither the effect of the transition process nor its ultimate success can yet be known. The transition away from and eventual elimination of LIBOR may adversely affect the interest rates on amounts of any payments paid or received with respect to, and liquidity and value of, certain assets and liabilities of the Portfolio that are tied to LIBOR. These may include bank loans, floating rate securities, structured securities (including asset-backed and mortgage-backed securities), other debt securities, derivatives, and financing transactions tied to LIBOR, particularly insofar as the documentation governing such instruments does not include "fall back" provisions addressing the transition from LIBOR. The effect of any changes to, or discontinuation of, LIBOR on the Portfolio will vary depending on, among other things (1) existing fallback or termination provisions in individual contracts and (2) the extent to which industry participants adopt new reference rates and fallbacks for both legacy and new products and instruments. The Subadviser may have discretion to determine a successor or substitute reference rate, including any price or other adjustments to account for differences between the successor or substitute reference rate and previous rate. Such successor or substitute reference rate and any adjustments selected may negatively impact the Portfolio's investments, performance or financial condition, and may expose the Portfolio to additional tax, accounting and regulatory risks. The transition away from LIBOR may affect the value, liquidity or return on certain Portfolio investments, reduce the effectiveness of related transactions such as hedges, and may result in costs incurred in connection with closing out positions and entering into new trades, adversely impacting the Portfolio's overall financial condition or results of operations. The transition process may involve, among other things, increased volatility in markets for instruments that continue to rely on LIBOR. It is difficult to predict the full impact of the transition away from LIBOR and the adoption of alternative reference rates on the Portfolio.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $287047189 | $41599699 | $439062021 | $131781547 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2022 were $5,624,437.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Management, LLC ("MIM") with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIM an investment subadvisory fee for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average daily net assets** |
| 0.040% | On the first $500 million |
| 0.030% | Of the next $500 million |
| 0.015% | On amounts over $1 billion |

---

Fees earned by MIM with respect to the Portfolio for the year ended December 31, 2022 were $537,466.

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum** | **Average daily net assets** |
| 0.005% | Over $500 million and under $1 billion |
| 0.010% | Of the next $1 billion |
| 0.015% | On amounts over $2 billion |

---

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $2670976409 |
|  Gross unrealized appreciation | 19931086 |
|  Gross unrealized (depreciation) | (328658499) |
|  Net unrealized appreciation (depreciation) | $(308727413) |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $60641436 | $66279402 | $— | $— | $60641436 | $66279402 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $54776037 | $– $| (308727413) | $(78846686) | $(332798062) |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $20,775,761 and accumulated long-term capital losses of $58,070,925.

**8. Recent Accounting Pronouncement** 

In January 2021, the FASB issued Accounting Standards Update No. 2021-01 ("ASU 2021-01"), "Reference Rate Reform (Topic 848)". ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, as regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective through December 31, 2022, for all entities. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

of the hedging relationship. Management expects that the adoption of the guidance will not have a material impact on the Portfolio's financial statements.

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-34** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MetLife Aggregate Bond Index Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Aggregate Bond Index Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Aggregate Bond Index Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-35** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-36** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-37** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-38** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-39** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MetLife Aggregate Bond Index Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Management, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-year period ended June 30, 2022 and underperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the one-, three-, and five-year periods ended October 31, 2022, and the Board noted management's explanation of the tracking error between the Portfolio and the Index. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-40** 

------

**Brighthouse Funds Trust II** 

**MetLife Aggregate Bond Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further considered that the Portfolio's total expenses (exclusive of 12b-1 fees) were above the Expense Group median and Expense Universe median and below the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-41** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Managed By MetLife Investment Management, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, E and G shares of the MetLife Mid Cap Stock Index Portfolio returned -13.26%, -13.44%, -13.40%, and -13.50%, respectively. The Portfolio's benchmark, the Standard & Poor's ("S&P") MidCap 400 Index¹, returned -13.06%.

**MARKET ENVIRONMENT / CONDITIONS** 

Equity markets declined in 2022 as the U.S. Federal Reserve (the "Fed") aggressively raised interest rates to address higher inflation. Tight labor markets and ongoing supply and demand imbalances drove inflation to a new 40-year high. In addition, investor concerns about rising recession risks, lingering pandemic effects, and the ongoing Russian invasion of Ukraine were negatives for the market. Factors that supported the equity markets included signs that inflation data was decelerating, and the Fed might begin pausing interest rate increases. In addition, equity investors were hopeful that the end of Chinese lockdowns might eventually boost the global economy.

During the year, the Federal Open Market Committee ("FOMC") met eight times. In December, the FOMC decided to raise the Federal Funds Rate target range from 3.75% - 4.00% to 4.25% - 4.50%. The FOMC stated that inflation remained elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures. The FOMC seeks to achieve maximum employment and inflation at the rate of 2 percent over the long run.

Ten of the eleven sectors comprising the S&P MidCap 400 Index experienced negative returns for the year. Energy (2.1% beginning weight in the benchmark), up 36.6%, was the best performing sector and had the largest positive impact on the benchmark return. Real Estate (10.4% beginning weight), down 26.2%; Consumer Discretionary (15.5% beginning weight), down 21.4%; and Information Technology (14.4% beginning weight), down 20.7%, were the worst-performing sectors.

The stocks with the largest positive impact on the benchmark return for the year were EQT, up 89.2%; First Solar, up 77.9%; and Steel Dynamics, up 71.2%. The stocks with the largest negative impact were Trex, down 68.7%; Synaptics, down 67.1%; and Masimo, down 49.5%.

**PORTFOLIO REVIEW / CURRENT POSITIONING** 

The Portfolio is managed utilizing a full replication strategy versus the S&P MidCap 400 Index. This strategy seeks to replicate the performance of the Index by owning all of the components of the Index at their respective Index capitalization weights. The Portfolio is periodically rebalanced for compositional changes in the S&P MidCap 400 Index. Factors that impact tracking error include transaction costs, cash drag, securities lending, net asset value (NAV) rounding, and contributions and withdrawals.

**Stacey Lituchy** 

**Norman Hu** 

**Mirsad Usejnoski** 

Portfolio Managers

*MetLife Investment Management, LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The S&P MidCap 400 Index is an unmanaged index designed to measure the performance of 400 mid-sized U.S. companies, reflecting the distinctive risk and return characteristics of this market segment.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE S&P MIDCAP 400 INDEX**![LOGO](g400324g54x22.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**MetLife Mid Cap Stock Index Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -13.26 | 6.45 | 10.51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -13.44 | 6.19 | 10.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -13.40 | 6.29 | 10.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class G** | -13.50 | 6.13 | 10.18 |
| &nbsp;&nbsp;&nbsp;**S&P MidCap 400 Index** | -13.06 | 6.71 | 10.78 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **SPDR S&P MidCap 400 ETF Trust** | **2.8** |
| **Fair Isaac Corp.** | **0.7** |
| **First Horizon National Corp.** | **0.6** |
| **United Therapeutics Corp.** | **0.6** |
| **Hubbell, Inc.** | **0.6** |
| **RPM International, Inc.** | **0.6** |
| **Carlisle Cos., Inc.** | **0.6** |
| **Reliance Steel & Aluminum Co.** | **0.6** |
| **AECOM** | **0.6** |
| **Toro Co. (The)** | **0.6** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Industrials** | **19.0** |
| **Financials** | **17.3** |
| **Consumer Discretionary** | **13.4** |
| **Information Technology** | **11.6** |
| **Health Care** | **9.8** |
| **Real Estate** | **7.8** |
| **Materials** | **6.3** |
| **Utilities** | **3.9** |
| **Consumer Staples** | **3.9** |
| **Energy** | **3.7** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MetLife Mid Cap Stock Index Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.29% | $1000.00 | $1079.60 | $1.52 |
|  | Hypothetical\* | 0.29% | $1000.00 | $1023.74 | $1.48 |
|  Class B (a) | Actual | 0.54% | $1000.00 | $1078.70 | $2.83 |
|  | Hypothetical\* | 0.54% | $1000.00 | $1022.48 | $2.75 |
|  Class E (a) | Actual | 0.44% | $1000.00 | $1078.50 | $2.31 |
|  | Hypothetical\* | 0.44% | $1000.00 | $1022.99 | $2.24 |
|  Class G (a) | Actual | 0.59% | $1000.00 | $1077.60 | $3.09 |
|  | Hypothetical\* | 0.59% | $1000.00 | $1022.23 | $3.01 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—95.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.4%** | | |
|  Axon Enterprise, Inc. (a) | 30624 | $5081440 |
|  Curtiss-Wright Corp. | 17352 | 2897610 |
|  Hexcel Corp. (b) | 38126 | 2243715 |
|  Mercury Systems, Inc. (a) (b) | 26263 | 1175007 |
|  Woodward, Inc. (b) | 27252 | 2632816 |
|  |  | 14030588 |
| **Air Freight & Logistics—0.2%** |  |  |
|  GXO Logistics, Inc. (a) | 53739 | 2294118 |
| **Airlines—0.1%** |  |  |
|  JetBlue Airways Corp. (a) (b) (c) | 146705 | 950648 |
| **Auto Components—1.4%** |  |  |
|  Adient plc (a) | 42947 | 1489831 |
|  Dana, Inc. | 57791 | 874378 |
|  Fox Factory Holding Corp. (a) (b) | 19146 | 1746690 |
|  Gentex Corp. | 106257 | 2897628 |
|  Goodyear Tire & Rubber Co. (The) (a) | 128126 | 1300479 |
|  Lear Corp. | 26773 | 3320387 |
|  Visteon Corp. (a) | 12748 | 1667821 |
|  |  | 13297214 |
| **Automobiles—0.4%** |  |  |
|  Harley-Davidson, Inc. | 60256 | 2506649 |
|  Thor Industries, Inc. (b) | 24316 | 1835615 |
|  |  | 4342264 |
| **Banks—6.9%** |  |  |
|  Associated Banc-Corp. (b) | 68107 | 1572591 |
|  Bank of Hawaii Corp. | 18124 | 1405697 |
|  Bank OZK | 50141 | 2008648 |
|  Cadence Bank (b) | 82641 | 2037927 |
|  Cathay General Bancorp | 33706 | 1374868 |
|  Commerce Bancshares, Inc. (b) | 51656 | 3516224 |
|  Cullen/Frost Bankers, Inc. | 29125 | 3894013 |
|  East West Bancorp, Inc. | 63844 | 4207320 |
|  First Financial Bankshares, Inc. (b) | 58796 | 2022582 |
|  First Horizon National Corp. | 243065 | 5955092 |
|  FNB Corp. (b) | 158893 | 2073554 |
|  Fulton Financial Corp. | 75868 | 1276858 |
|  Glacier Bancorp, Inc. (b) | 50173 | 2479550 |
|  Hancock Whitney Corp. | 38816 | 1878306 |
|  Home BancShares, Inc. | 85924 | 1958208 |
|  International Bancshares Corp. | 23915 | 1094350 |
|  Old National Bancorp | 132669 | 2385389 |
|  PacWest Bancorp | 53362 | 1224658 |
|  Pinnacle Financial Partners, Inc. (b) | 34631 | 2541915 |
|  Prosperity Bancshares, Inc. | 41360 | 3006045 |
|  Synovus Financial Corp. | 65887 | 2474057 |
|  Texas Capital Bancshares, Inc. (a) (b) | 22602 | 1363127 |
|  UMB Financial Corp. (b) | 19695 | 1644926 |
|  Umpqua Holdings Corp. | 98317 | 1754958 |
|  United Bankshares, Inc. (b) | 60995 | 2469688 |
|  Valley National Bancorp | 190370 | 2153085 |
| **Banks—(Continued)** |  |  |
|  Washington Federal, Inc. (b) | 29592 | 992812 |
|  Webster Financial Corp. | 78820 | 3731339 |
|  Wintrust Financial Corp. | 27524 | 2326328 |
|  |  | 66824115 |
| **Beverages—0.4%** |  |  |
|  Boston Beer Co., Inc. (The) - Class A (a) | 4270 | 1407050 |
|  Celsius Holdings, Inc. (a) (b) | 18300 | 1903932 |
|  Coca-Cola Consolidated, Inc. | 2085 | 1068271 |
|  |  | 4379253 |
| **Biotechnology—1.9%** |  |  |
|  Arrowhead Pharmaceuticals, Inc. (a) (b) | 47945 | 1944649 |
|  Exelixis, Inc. (a) | 146108 | 2343573 |
|  Halozyme Therapeutics, Inc. (a) | 61247 | 3484954 |
|  Neurocrine Biosciences, Inc. (a) | 43545 | 5201015 |
|  United Therapeutics Corp. (a) | 20645 | 5741168 |
|  |  | 18715359 |
| **Building Products—2.5%** |  |  |
|  Builders FirstSource, Inc. (a) | 66665 | 4325225 |
|  Carlisle Cos., Inc. | 23426 | 5520337 |
|  Fortune Brands Innovations, Inc. | 58089 | 3317463 |
|  Lennox International, Inc. | 14608 | 3494672 |
|  Owens Corning | 42332 | 3610919 |
|  Simpson Manufacturing Co., Inc. (b) | 19295 | 1710695 |
|  Trex Co., Inc. (a) (b) | 49707 | 2104097 |
|  |  | 24083408 |
| **Capital Markets—2.0%** |  |  |
|  Affiliated Managers Group, Inc. (b) | 17063 | 2703291 |
|  Evercore, Inc. - Class A | 16185 | 1765460 |
|  Federated Hermes, Inc. | 38292 | 1390383 |
|  Interactive Brokers Group, Inc. - Class A | 46597 | 3371293 |
|  Janus Henderson Group plc (b) | 60029 | 1411882 |
|  Jefferies Financial Group, Inc. | 82979 | 2844520 |
|  SEI Investments Co. | 46415 | 2705994 |
|  Stifel Financial Corp. (b) | 48141 | 2809990 |
|  |  | 19002813 |
| **Chemicals—2.6%** |  |  |
|  Ashland, Inc. | 22561 | 2425984 |
|  Avient Corp. | 38722 | 1307255 |
|  Cabot Corp. (b) | 25479 | 1703016 |
|  Chemours Co. (The) | 68360 | 2093183 |
|  Ingevity Corp. (a) | 15912 | 1120841 |
|  NewMarket Corp. | 3085 | 959774 |
|  Olin Corp. | 57696 | 3054426 |
|  RPM International, Inc. | 58477 | 5698584 |
|  Scotts Miracle-Gro Co. (The) (b) | 18320 | 890169 |
|  Sensient Technologies Corp. | 19042 | 1388543 |
|  Valvoline, Inc. | 80183 | 2617975 |
|  Westlake Corp. (b) | 15598 | 1599419 |
|  |  | 24859169 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Commercial Services & Supplies—1.5%** | | |
|  Brink's Co. (The) | 21040 | $1130058 |
|  Clean Harbors, Inc. (a) | 22779 | 2599540 |
|  IAA, Inc. (a) | 60590 | 2423600 |
|  MSA Safety, Inc. (b) | 16690 | 2406531 |
|  Stericycle, Inc. (a) (b) | 41756 | 2083207 |
|  Tetra Tech, Inc. | 23999 | 3484415 |
|  |  | 14127351 |
| **Communications Equipment—0.8%** |  |  |
|  Calix, Inc. (a) | 25789 | 1764741 |
|  Ciena Corp. (a) | 67103 | 3420911 |
|  Lumentum Holdings, Inc. (a) (b) | 30892 | 1611636 |
|  ViaSat, Inc. (a) (b) | 34238 | 1083633 |
|  |  | 7880921 |
| **Construction & Engineering—2.1%** |  |  |
|  AECOM | 63257 | 5372417 |
|  Dycom Industries, Inc. (a) (b) | 13343 | 1248905 |
|  EMCOR Group, Inc. | 21586 | 3197102 |
|  Fluor Corp. (a) | 64360 | 2230718 |
|  MasTec, Inc. (a) (b) | 26708 | 2278994 |
|  MDU Resources Group, Inc. | 92110 | 2794617 |
|  Valmont Industries, Inc. | 9663 | 3195264 |
|  |  | 20318017 |
| **Construction Materials—0.2%** |  |  |
|  Eagle Materials, Inc. | 16690 | 2217267 |
| **Consumer Finance—0.4%** |  |  |
|  FirstCash Holdings, Inc. | 16994 | 1476949 |
|  Navient Corp. (b) | 47914 | 788185 |
|  SLM Corp. | 113330 | 1881278 |
|  |  | 4146412 |
| **Containers & Packaging—0.9%** |  |  |
|  AptarGroup, Inc. | 29571 | 3252218 |
|  Greif, Inc. - Class A | 11598 | 777762 |
|  Silgan Holdings, Inc. | 37895 | 1964477 |
|  Sonoco Products Co. | 44169 | 2681500 |
|  |  | 8675957 |
| **Diversified Consumer Services—1.0%** |  |  |
|  Graham Holdings Co. - Class B | 1739 | 1050721 |
|  Grand Canyon Education, Inc. (a) | 13893 | 1467934 |
|  H&R Block, Inc. | 70421 | 2571071 |
|  Service Corp. International | 69669 | 4816915 |
|  |  | 9906641 |
| **Diversified Financial Services—0.3%** |  |  |
|  Voya Financial, Inc. (b) | 44016 | 2706544 |
| **Diversified Telecommunication Services—0.6%** |  |  |
|  Frontier Communications Parent, Inc. (a) (b) | 100990 | 2573225 |
|  Iridium Communications, Inc. (a) | 56912 | 2925277 |
|  |  | 5498502 |
| **Electric Utilities—1.4%** |  |  |
|  ALLETE, Inc. | 25892 | 1670293 |
|  Hawaiian Electric Industries, Inc. (b) | 49586 | 2075174 |
|  IDACORP, Inc. (b) | 22903 | 2470089 |
|  OGE Energy Corp. | 90685 | 3586592 |
|  PNM Resources, Inc. | 38880 | 1896955 |
|  Portland General Electric Co. (b) | 40437 | 1981413 |
|  |  | 13680516 |
| **Electrical Equipment—1.9%** |  |  |
|  Acuity Brands, Inc. | 14567 | 2412441 |
|  EnerSys | 18494 | 1365597 |
|  Hubbell, Inc. (b) | 24327 | 5709060 |
|  nVent Electric plc | 75458 | 2902869 |
|  Regal Rexnord Corp. (b) | 29964 | 3595081 |
|  Sunrun, Inc. (a) (b) | 96528 | 2318603 |
|  Vicor Corp. (a) | 10096 | 542660 |
|  |  | 18846311 |
| **Electronic Equipment, Instruments & Components—3.0%** |  |  |
|  Arrow Electronics, Inc. (a) | 27861 | 2913425 |
|  Avnet, Inc. | 41454 | 1723657 |
|  Belden, Inc. | 19390 | 1394141 |
|  Cognex Corp. | 78331 | 3690173 |
|  Coherent Corp. (a) (b) | 62821 | 2205017 |
|  IPG Photonics Corp. (a) | 14563 | 1378679 |
|  Jabil, Inc. | 60987 | 4159313 |
|  Littelfuse, Inc. | 11214 | 2469323 |
|  National Instruments Corp. (b) | 59143 | 2182377 |
|  Novanta, Inc. (a) | 16167 | 2196610 |
|  TD SYNNEX Corp. | 19044 | 1803657 |
|  Vishay Intertechnology, Inc. | 58689 | 1265922 |
|  Vontier Corp. | 71565 | 1383352 |
|  |  | 28765646 |
| **Energy Equipment & Services—0.6%** |  |  |
|  ChampionX Corp. | 90303 | 2617884 |
|  NOV, Inc. | 177927 | 3716895 |
|  |  | 6334779 |
| **Entertainment—0.1%** |  |  |
|  World Wrestling Entertainment, Inc. - Class A (b) | 19613 | 1343883 |
| **Equity Real Estate Investment Trusts—7.4%** |  |  |
|  Apartment Income REIT Corp. | 67912 | 2330061 |
|  Brixmor Property Group, Inc. | 135850 | 3079720 |
|  Corporate Office Properties Trust | 50923 | 1320943 |
|  Cousins Properties, Inc. (b) | 68594 | 1734742 |
|  CubeSmart | 101724 | 4094391 |
|  Douglas Emmett, Inc. (b) | 79626 | 1248536 |
|  EastGroup Properties, Inc. | 19738 | 2922408 |
|  EPR Properties (b) | 33981 | 1281763 |
|  First Industrial Realty Trust, Inc. | 59852 | 2888458 |
|  Healthcare Realty Trust, Inc. - Class A | 172385 | 3321859 |
|  Highwoods Properties, Inc. | 47651 | 1333275 |
|  Independence Realty Trust, Inc. | 101392 | 1709469 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Equity Real Estate Investment Trusts—(Continued)** | | |
|  JBG SMITH Properties | 44841 | $851082 |
|  Kilroy Realty Corp. | 47647 | 1842510 |
|  Kite Realty Group Trust | 99244 | 2089086 |
|  Lamar Advertising Co. - Class A | 39527 | 3731349 |
|  Life Storage, Inc. | 38501 | 3792349 |
|  Macerich Co. (The) (b) | 97290 | 1095485 |
|  Medical Properties Trust, Inc. (b) | 270873 | 3017525 |
|  National Retail Properties, Inc. | 80959 | 3704684 |
|  National Storage Affiliates Trust | 38277 | 1382565 |
|  Omega Healthcare Investors, Inc. (b) | 106076 | 2964824 |
|  Park Hotels & Resorts, Inc. (b) | 101846 | 1200764 |
|  Pebblebrook Hotel Trust (b) | 59552 | 797401 |
|  Physicians Realty Trust (b) | 103394 | 1496111 |
|  PotlatchDeltic Corp. | 36589 | 1609550 |
|  Rayonier, Inc. | 66325 | 2186072 |
|  Rexford Industrial Realty, Inc. (b) | 83116 | 4541458 |
|  Sabra Health Care REIT, Inc. | 104624 | 1300476 |
|  SL Green Realty Corp. (b) | 29132 | 982331 |
|  Spirit Realty Capital, Inc. | 63261 | 2526012 |
|  STORE Capital Corp. | 120364 | 3858870 |
|  |  | 72236129 |
| **Food & Staples Retailing—1.5%** |  |  |
|  BJ's Wholesale Club Holdings, Inc. (a) | 61181 | 4047735 |
|  Casey's General Stores, Inc. | 16876 | 3786131 |
|  Grocery Outlet Holding Corp. (a) (b) | 40098 | 1170461 |
|  Performance Food Group Co. (a) | 70514 | 4117312 |
|  Sprouts Farmers Market, Inc. (a) (b) | 47947 | 1552044 |
|  |  | 14673683 |
| **Food Products—1.5%** |  |  |
|  Darling Ingredients, Inc. (a) | 72597 | 4543846 |
|  Flowers Foods, Inc. | 87028 | 2501185 |
|  Ingredion, Inc. | 29694 | 2907934 |
|  Lancaster Colony Corp. | 8986 | 1772938 |
|  Pilgrim's Pride Corp. (a) | 20351 | 482929 |
|  Post Holdings, Inc. (a) | 24632 | 2223284 |
|  |  | 14432116 |
| **Gas Utilities—1.4%** |  |  |
|  National Fuel Gas Co. | 41436 | 2622899 |
|  New Jersey Resources Corp. | 43588 | 2162837 |
|  ONE Gas, Inc. (b) | 24524 | 1856957 |
|  Southwest Gas Holdings, Inc. | 27949 | 1729484 |
|  Spire, Inc. (b) | 23777 | 1637284 |
|  UGI Corp. | 94842 | 3515793 |
|  |  | 13525254 |
| **Health Care Equipment & Supplies—3.4%** |  |  |
|  Enovis Corp. (a) | 21584 | 1155176 |
|  Envista Holdings Corp. (a) | 73853 | 2486630 |
|  Globus Medical, Inc. - Class A (a) (b) | 35065 | 2604278 |
|  Haemonetics Corp. (a) | 22924 | 1802973 |
|  ICU Medical, Inc. (a) (b) | 9125 | 1437005 |
|  Inari Medical, Inc. (a) | 21872 | 1390184 |
| **Health Care Equipment & Supplies—(Continued)** |  |  |
|  Integra LifeSciences Holdings Corp. (a) (b) | 32912 | 1845376 |
|  Lantheus Holdings, Inc. (a) | 31178 | 1588831 |
|  LivaNova plc (a) (b) | 24244 | 1346512 |
|  Masimo Corp. (a) | 21906 | 3240993 |
|  Neogen Corp. (a) | 97889 | 1490849 |
|  Omnicell, Inc. (a) (b) | 20224 | 1019694 |
|  Penumbra, Inc. (a) (b) | 17203 | 3826979 |
|  QuidelOrtho Corp. (a) | 24232 | 2075955 |
|  Shockwave Medical, Inc. (a) | 16371 | 3366041 |
|  STAAR Surgical Co. (a) (b) | 21835 | 1059871 |
|  Tandem Diabetes Care, Inc. (a) | 29125 | 1309169 |
|  |  | 33046516 |
| **Health Care Providers & Services—2.3%** |  |  |
|  Acadia Healthcare Co., Inc. (a) | 41209 | 3392325 |
|  Amedisys, Inc. (a) | 14718 | 1229542 |
|  Chemed Corp. | 6736 | 3438256 |
|  Encompass Health Corp. | 45200 | 2703412 |
|  HealthEquity, Inc. (a) | 38289 | 2360134 |
|  LHC Group, Inc. (a) (b) | 14055 | 2272553 |
|  Option Care Health, Inc. (a) | 70035 | 2107353 |
|  Patterson Cos., Inc. | 39239 | 1099869 |
|  Progyny, Inc. (a) | 34078 | 1061530 |
|  R1 RCM, Inc. (a) | 62259 | 681736 |
|  Tenet Healthcare Corp. (a) | 48975 | 2389490 |
|  |  | 22736200 |
| **Hotels, Restaurants & Leisure—2.7%** |  |  |
|  Boyd Gaming Corp. | 35931 | 1959317 |
|  Choice Hotels International, Inc. (b) | 12554 | 1414083 |
|  Churchill Downs, Inc. | 14909 | 3152210 |
|  Cracker Barrel Old Country Store, Inc. (b) | 10041 | 951284 |
|  Light & Wonder, Inc. (a) | 42431 | 2486457 |
|  Marriott Vacations Worldwide Corp. | 17358 | 2336213 |
|  Papa John's International, Inc. | 14562 | 1198598 |
|  Penn Entertainment, Inc. (a) (b) | 70263 | 2086811 |
|  Texas Roadhouse, Inc. | 30310 | 2756695 |
|  Travel and Leisure Co. | 36817 | 1340139 |
|  Wendy's Co. (The) | 77195 | 1746923 |
|  Wingstop, Inc. (b) | 13551 | 1864889 |
|  Wyndham Hotels & Resorts, Inc. | 40008 | 2852970 |
|  |  | 26146589 |
| **Household Durables—1.4%** |  |  |
|  Helen of Troy, Ltd. (a) | 10867 | 1205259 |
|  KB Home | 37623 | 1198292 |
|  Leggett & Platt, Inc. (b) | 60052 | 1935476 |
|  Taylor Morrison Home Corp. (a) (b) | 49077 | 1489487 |
|  Tempur Sealy International, Inc. (b) | 77449 | 2658824 |
|  Toll Brothers, Inc. | 47741 | 2383231 |
|  TopBuild Corp. (a) | 14482 | 2266288 |
|  |  | 13136857 |
| **Household Products—0.1%** |  |  |
|  Energizer Holdings, Inc. (b) | 30016 | 1007037 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Independent Power and Renewable Electricity Producers—0.2%** | **Independent Power and Renewable Electricity Producers—0.2%** | |
|  Ormat Technologies, Inc. | 22087 | $1910084 |
| **Insurance—3.9%** |  |  |
|  American Financial Group, Inc. | 31625 | 4341480 |
|  Brighthouse Financial, Inc. (a) (d) | 31313 | 1605418 |
|  CNO Financial Group, Inc. | 51820 | 1184087 |
|  First American Financial Corp. (b) | 46901 | 2454798 |
|  Hanover Insurance Group, Inc. (The) | 16109 | 2176809 |
|  Kemper Corp. (b) | 28937 | 1423700 |
|  Kinsale Capital Group, Inc. | 9762 | 2552958 |
|  Old Republic International Corp. | 128190 | 3095789 |
|  Primerica, Inc. | 16714 | 2370380 |
|  Reinsurance Group of America, Inc. | 30275 | 4301775 |
|  RenaissanceRe Holdings, Ltd. | 19796 | 3647017 |
|  RLI Corp. | 18294 | 2401453 |
|  Selective Insurance Group, Inc. | 27302 | 2419230 |
|  Unum Group | 84706 | 3475487 |
|  |  | 37450381 |
| **Interactive Media & Services—0.3%** |  |  |
|  TripAdvisor, Inc. (a) (b) | 47463 | 853385 |
|  Ziff Davis, Inc. (a) | 21376 | 1690841 |
|  |  | 2544226 |
| **IT Services—2.0%** |  |  |
|  Concentrix Corp. | 19192 | 2555607 |
|  Euronet Worldwide, Inc. (a) | 21341 | 2014163 |
|  ExlService Holdings, Inc. (a) | 14978 | 2537722 |
|  Genpact, Ltd. | 76368 | 3537366 |
|  Kyndryl Holdings, Inc. (a) (b) | 92455 | 1028100 |
|  Maximus, Inc. | 27427 | 2011222 |
|  Western Union Co. (The) (b) | 174922 | 2408676 |
|  WEX, Inc. (a) | 19746 | 3231433 |
|  |  | 19324289 |
| **Leisure Products—1.1%** |  |  |
|  Brunswick Corp. | 32843 | 2367323 |
|  Mattel, Inc. (a) | 160531 | 2863873 |
|  Polaris, Inc. (b) | 24678 | 2492478 |
|  Topgolf Callaway Brands Corp. (a) (b) | 62797 | 1240241 |
|  YETI Holdings, Inc. (a) (b) | 39067 | 1613858 |
|  |  | 10577773 |
| **Life Sciences Tools & Services—1.4%** |  |  |
|  Azenta, Inc. (a) (b) | 33981 | 1978374 |
|  Bruker Corp. | 45304 | 3096528 |
|  Medpace Holdings, Inc. (a) (b) | 11411 | 2423811 |
|  Repligen Corp. (a) (b) | 23390 | 3960161 |
|  Sotera Health Co. (a) | 44725 | 372559 |
|  Syneos Health, Inc. (a) | 46611 | 1709691 |
|  |  | 13541124 |
| **Machinery—4.5%** |  |  |
|  AGCO Corp. | 28046 | 3889700 |
|  Chart Industries, Inc. (a) (b) | 18933 | 2181650 |
| **Machinery—(Continued)** |  |  |
|  Crane Holdings Co. | 21617 | 2171428 |
|  Donaldson Co., Inc. | 55470 | 3265519 |
|  Esab Corp. | 23403 | 1098069 |
|  Flowserve Corp. | 59200 | 1816256 |
|  Graco, Inc. | 76338 | 5134494 |
|  ITT, Inc. | 37460 | 3038006 |
|  Kennametal, Inc. | 36498 | 878142 |
|  Lincoln Electric Holdings, Inc. | 26154 | 3778991 |
|  Middleby Corp. (The) (a) (b) | 24408 | 3268231 |
|  Oshkosh Corp. | 29621 | 2612276 |
|  Terex Corp. | 30575 | 1306164 |
|  Timken Co. (The) | 29985 | 2119040 |
|  Toro Co. (The) | 47200 | 5343040 |
|  Watts Water Technologies, Inc. - Class A | 12359 | 1807256 |
|  |  | 43708262 |
| **Marine—0.2%** |  |  |
|  Kirby Corp. (a) | 27131 | 1745880 |
| **Media—1.0%** |  |  |
|  Cable One, Inc. | 2184 | 1554702 |
|  John Wiley & Sons, Inc. - Class A | 19449 | 779127 |
|  New York Times Co. (The) - Class A | 74574 | 2420672 |
|  Nexstar Media Group, Inc. - Class A | 17081 | 2989687 |
|  TEGNA, Inc. | 101061 | 2141483 |
|  |  | 9885671 |
| **Metals & Mining—2.4%** |  |  |
|  Alcoa Corp. | 80146 | 3644239 |
|  Cleveland-Cliffs, Inc. (a) (b) | 233414 | 3760299 |
|  Commercial Metals Co. | 53152 | 2567242 |
|  MP Materials Corp. (a) (b) | 41818 | 1015341 |
|  Reliance Steel & Aluminum Co. | 26585 | 5381867 |
|  Royal Gold, Inc. (b) | 29735 | 3351729 |
|  United States Steel Corp. (b) | 106115 | 2658181 |
|  Worthington Industries, Inc. (b) | 13735 | 682767 |
|  |  | 23061665 |
| **Mortgage Real Estate Investment Trusts—0.5%** |  |  |
|  Annaly Capital Management, Inc. | 211927 | 4467421 |
| **Multi-Utilities—0.4%** |  |  |
|  Black Hills Corp. | 29478 | 2073483 |
|  NorthWestern Corp. (b) | 26172 | 1553046 |
|  |  | 3626529 |
| **Multiline Retail—0.6%** |  |  |
|  Kohl's Corp. (b) | 52832 | 1334008 |
|  Macy's, Inc. | 122749 | 2534767 |
|  Nordstrom, Inc. (b) | 50456 | 814360 |
|  Ollie's Bargain Outlet Holdings, Inc. (a) (b) | 26366 | 1234983 |
|  |  | 5918118 |
| **Oil, Gas & Consumable Fuels—3.1%** |  |  |
|  Antero Midstream Corp. (b) | 151716 | 1637016 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Oil, Gas & Consumable Fuels—(Continued)** | | |
|  Antero Resources Corp. (a) | 125075 | $3876074 |
|  CNX Resources Corp. (a) | 81749 | 1376653 |
|  DT Midstream, Inc. (a) (b) | 43825 | 2421770 |
|  Equitrans Midstream Corp. | 196034 | 1313428 |
|  HF Sinclair Corp. | 60919 | 3161087 |
|  Matador Resources Co. | 50847 | 2910482 |
|  Murphy Oil Corp. | 66190 | 2846832 |
|  PBF Energy, Inc. - Class A | 51771 | 2111221 |
|  PDC Energy, Inc. | 41738 | 2649528 |
|  Range Resources Corp. | 109452 | 2738489 |
|  Southwestern Energy Co. (a) | 499883 | 2924316 |
|  |  | 29966896 |
| **Paper & Forest Products—0.2%** |  |  |
|  Louisiana-Pacific Corp. (b) | 32475 | 1922520 |
| **Personal Products—0.3%** |  |  |
|  BellRing Brands, Inc. (a) | 61351 | 1573039 |
|  Coty, Inc. - Class A (a) | 165580 | 1417365 |
|  |  | 2990404 |
| **Pharmaceuticals—0.7%** |  |  |
|  Jazz Pharmaceuticals plc (a) | 28522 | 4543840 |
|  Perrigo Co. plc | 60987 | 2079047 |
|  |  | 6622887 |
| **Professional Services—1.8%** |  |  |
|  ASGN, Inc. (a) | 22603 | 1841693 |
|  CACI International, Inc. - Class A (a) | 10644 | 3199480 |
|  FTI Consulting, Inc. (a) (b) | 15593 | 2476168 |
|  Insperity, Inc. | 16152 | 1834867 |
|  KBR, Inc. (b) | 62145 | 3281256 |
|  ManpowerGroup, Inc. | 22901 | 1905592 |
|  Science Applications International Corp. | 24971 | 2770033 |
|  |  | 17309089 |
| **Real Estate Management & Development—0.4%** |  |  |
|  Jones Lang LaSalle, Inc. (a) | 21499 | 3426296 |
| **Road & Rail—1.7%** |  |  |
|  Avis Budget Group, Inc. (a) (b) | 11270 | 1847491 |
|  Knight-Swift Transportation Holdings, Inc. | 72789 | 3814872 |
|  Landstar System, Inc. | 16273 | 2650872 |
|  RXO, Inc. (a) | 52142 | 896842 |
|  Ryder System, Inc. (b) | 22762 | 1902220 |
|  Saia, Inc. (a) | 11987 | 2513434 |
|  Werner Enterprises, Inc. | 26624 | 1071882 |
|  XPO Logistics, Inc. (a) | 52164 | 1736540 |
|  |  | 16434153 |
| **Semiconductors & Semiconductor Equipment—2.5%** |  |  |
|  Allegro MicroSystems, Inc. (a) (b) | 29463 | 884479 |
|  Amkor Technology, Inc. | 45495 | 1090970 |
|  Cirrus Logic, Inc. (a) | 24941 | 1857606 |
|  Lattice Semiconductor Corp. (a) | 62083 | 4027945 |
| **Semiconductors & Semiconductor Equipment—(Continued)** | **Semiconductors & Semiconductor Equipment—(Continued)** |  |
|  MACOM Technology Solutions Holdings, Inc. (a) | 23145 | 1457672 |
|  MKS Instruments, Inc. (b) | 25908 | 2195185 |
|  Power Integrations, Inc. | 25909 | 1858193 |
|  Silicon Laboratories, Inc. (a) (b) | 15076 | 2045361 |
|  SiTime Corp. (a) (b) | 7283 | 740098 |
|  SunPower Corp. (a) (b) | 38660 | 697040 |
|  Synaptics, Inc. (a) | 18060 | 1718590 |
|  Universal Display Corp. | 19685 | 2126767 |
|  Wolfspeed, Inc. (a) (b) | 56264 | 3884467 |
|  |  | 24584373 |
| **Software—3.1%** |  |  |
|  ACI Worldwide, Inc. (a) | 50901 | 1170723 |
|  Aspen Technology, Inc. (a) | 13156 | 2702242 |
|  Blackbaud, Inc. (a) | 20203 | 1189149 |
|  CommVault Systems, Inc. (a) | 20171 | 1267546 |
|  Dynatrace, Inc. (a) | 91271 | 3495679 |
|  Envestnet, Inc. (a) (b) | 25061 | 1546264 |
|  Fair Isaac Corp. (a) | 11314 | 6772334 |
|  Manhattan Associates, Inc. (a) | 28264 | 3431250 |
|  NCR Corp. (a) | 62237 | 1456968 |
|  Paylocity Holding Corp. (a) | 18662 | 3625280 |
|  Qualys, Inc. (a) | 15659 | 1757409 |
|  Teradata Corp. (a) (b) | 46111 | 1552096 |
|  |  | 29966940 |
| **Specialty Retail—2.7%** |  |  |
|  AutoNation, Inc. (a) | 15494 | 1662506 |
|  Dick's Sporting Goods, Inc. | 25186 | 3029624 |
|  Five Below, Inc. (a) (b) | 25143 | 4447042 |
|  Foot Locker, Inc. (b) | 35923 | 1357530 |
|  GameStop Corp. - Class A (a) (b) | 114491 | 2113504 |
|  Gap, Inc. (The) (b) | 95550 | 1077804 |
|  Lithia Motors, Inc. (b) | 12383 | 2535295 |
|  Murphy USA, Inc. | 9416 | 2632149 |
|  RH (a) | 8705 | 2325889 |
|  Victoria's Secret & Co. (a) (b) | 36801 | 1316740 |
|  Williams-Sonoma, Inc. (b) | 30218 | 3472653 |
|  |  | 25970736 |
| **Technology Hardware, Storage & Peripherals—0.2%** |  |  |
|  Super Micro Computer, Inc. (a) | 20856 | 1712278 |
|  Xerox Holdings Corp. | 50747 | 740906 |
|  |  | 2453184 |
| **Textiles, Apparel & Luxury Goods—2.2%** |  |  |
|  Capri Holdings, Ltd. (a) | 58339 | 3343992 |
|  Carter's, Inc. (b) | 17286 | 1289709 |
|  Columbia Sportswear Co. | 16037 | 1404521 |
|  Crocs, Inc. (a) | 27968 | 3032570 |
|  Deckers Outdoor Corp. (a) (c) | 11989 | 4785529 |
|  Hanesbrands, Inc. (b) | 158061 | 1005268 |
|  PVH Corp. | 29543 | 2085440 |
|  Skechers USA, Inc. - Class A (a) | 60793 | 2550266 |
|  Under Armour, Inc. - Class A (a) (b) | 85469 | 868365 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal<br>Amount\*** | **Value** | **Value** |
| **Textiles, Apparel & Luxury Goods—(Continued)** | | | |
|  Under Armour, Inc. - Class C (a) (b) | 89245 | $| 796065 |
|  |  |  | 21161725 |
| **Thrifts & Mortgage Finance—0.6%** |  |  |  |
|  Essent Group, Ltd. | 48787 |  | 1896839 |
|  MGIC Investment Corp. | 134542 |  | 1749046 |
|  New York Community Bancorp, Inc. | 308147 |  | 2650064 |
|  |  |  | 6295949 |
| **Trading Companies & Distributors—1.0%** |  |  |  |
|  GATX Corp. (b) | 15944 |  | 1695485 |
|  MSC Industrial Direct Co., Inc. - Class A | 21389 |  | 1747481 |
|  Univar Solutions, Inc. (a) | 73909 |  | 2350306 |
|  Watsco, Inc. (b) | 15067 |  | 3757710 |
|  |  |  | 9550982 |
| **Water Utilities—0.5%** |  |  |  |
|  Essential Utilities, Inc. (b) | 108116 |  | 5160377 |
|  Total Common Stocks <br>(Cost $743,768,898) |  |  | 929746011 |
| **Mutual Funds—2.8%** | **Mutual Funds—2.8%** | **Mutual Funds—2.8%** | **Mutual Funds—2.8%** |
| **Investment Companies—2.8%** |  |  |  |
|  SPDR S&P MidCap 400 ETF Trust (b) <br>(Cost $27,785,228) | 61500 |  | 27231585 |
| **Short-Term Investments—1.5%** | **Short-Term Investments—1.5%** | **Short-Term Investments—1.5%** | **Short-Term Investments—1.5%** |
| **U.S. Treasury—1.5%** |  |  |  |
|  U.S. Treasury Bills<br>3.688%, 01/17/23 (e) | 5225000 |  | 5217525 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.726%, 01/24/23 (e) | 8975000 |  | 8954892 |
|  Total Short-Term Investments <br>(Cost $14,169,107) |  |  | 14172417 |
| **Securities Lending Reinvestments (f)—14.7%** | **Securities Lending Reinvestments (f)—14.7%** | **Securities Lending Reinvestments (f)—14.7%** | **Securities Lending Reinvestments (f)—14.7%** |
| **Certificates of Deposit—4.2%** | **Certificates of Deposit—4.2%** | **Certificates of Deposit—4.2%** | **Certificates of Deposit—4.2%** |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (g) | 2000000 |  | 2002702 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (g) | 3000000 |  | 3000000 |
|  Bank of Nova Scotia<br>4.710%, FEDEFF PRV + 0.380%, 01/06/23 (g) | 3000000 |  | 3000053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (g) | 5000000 |  | 5002101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (g) | 1000000 |  | 1001169 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (g) | 3000000 |  | 3001044 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (g) | 3000000 |  | 3000199 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (g) | 2000000 |  | 2000766 |
| **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (g) | 3000000 |  | 3000213 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (g) | 4000000 |  | 4001200 |
|  Nordea Bank Abp (NY)<br>4.800%, SOFR + 0.500%, 02/27/23 (g) | 2000000 |  | 2000554 |
|  Rabobank (London)<br>4.830%, SOFR + 0.530%, 05/16/23 (g) | 2000000 |  | 2000000 |
|  Standard Chartered Bank (NY)<br>4.860%, FEDEFF PRV + 0.530%, 01/17/23 (g) | 1000000 |  | 1000123 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (g) | 2000000 |  | 2000220 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (g) | 3000000 |  | 3000984 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (g) | 2000000 |  | 1999780 |
|  |  |  | 41011108 |
| **Commercial Paper—0.3%** | **Commercial Paper—0.3%** | **Commercial Paper—0.3%** | **Commercial Paper—0.3%** |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (g) | 3000000 |  | 3000810 |
| **Repurchase Agreements—7.1%** |  |  |  |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $10,136,005; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $10,333,833. | 10131209 |  | 10131209 |
|  BofA Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.200%, due on 01/03/23 with a maturity value of $11,005,133; collateralized by U.S. Government Agency Obligations with rates ranging from 2.000% - 3.000%, maturity dates ranging from 10/20/46 - 01/20/52, and an aggregate market value of $11,220,000. | 11000000 |  | 11000000 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $3,075,079; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $3,060,000. | 3000000 |  | 3000000 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $2,040,963. | 2000000 |  | 2000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $12,606,048; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $12,900,752. | 12600000 |  | 12600000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (f)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br>**Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | | |
|  National Bank of Canada | National Bank of Canada | National Bank of Canada |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $4,703,948; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $4,805,178. | 4700000 | $4700000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $11,109,605; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $12,085,997. | 11100000 | 11100000 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $3,013,563; collateralized by various Common Stock with an aggregate market value of $3,333,764. | 3000000 | 3000000 |
|  Societe Generale | Societe Generale | Societe Generale |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $1,100,519; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $1,123,987. | 1100000 | 1100000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $2,000,976; collateralized by various Common Stock with an aggregate market value of $2,225,694. | 2000000 | 2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $4,402,156; collateralized by various Common Stock with an aggregate market value of $4,897,010. | 4400000 | 4400000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $2,502,149; collateralized by various Common Stock with an aggregate market value of $2,782,980. | 2500000 | 2500000 |
|  TD Prime Services LLC | TD Prime Services LLC | TD Prime Services LLC |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $1,500,733; collateralized by various Common Stock with an aggregate market value of $1,669,271. | 1500000 | 1500000 |
|  |  | 69031209 |
| **Time Deposit—0.3%** |  |  |
|  First Abu Dhabi Bank USA NV<br>4.300%, 01/03/23 | 3000000 | 3000000 |
| **Mutual Funds—2.8%** |  |  |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (h) | 5000000 | 5000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (h) | 10000000 | 10000000 |
| **Mutual Funds—(Continued)** |  |  |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (h) | 5000000 | 5000000 |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (h) | 5000000 | 5000000 |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (h) | 2000000 | 2000000 |
|  |  | 27000000 |
|  Total Securities Lending Reinvestments <br>(Cost $143,031,209) |  | 143043127 |
|  Total Investments—114.8% <br>(Cost $928,754,442) |  | 1114193140 |
|  Other assets and liabilities (net)—(14.8)% |  | (143433523) |
| **Net Assets—100.0%** |  | $970759617 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $139,686,269 and the collateral received consisted of cash in the amount of $143,031,209 and non-cash collateral with a value of $194,512. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $3,280,120.

(d) Affiliated Issuer. (See Note 8 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)

(e) The rate shown represents current yield to maturity.

(f) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(g) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(h) The rate shown represents the annualized seven-day yield as of December 31, 2022.

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  S&P Midcap 400 Index E-Mini Futures | 03/17/23 | 57 | USD | 13922820 | $(305630) |

---

**Glossary of Abbreviations** 

Currencies

------

(USD)— United States Dollar

Index Abbreviations

------

(FEDEFF PRV)— Effective Federal Funds Rate <br> (SOFR)— Secured Overnight Financing Rate

Other Abbreviations

------

(ETF)— Exchange-Traded Fund <br> (REIT)— Real Estate Investment Trust

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $929746011 | $— | $— | $929746011 |
|  Total Mutual Funds\* | 27231585 |  |  | 27231585 |
|  Total Short-Term Investments\* |  | 14172417 |  | 14172417 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 41011108 |  | 41011108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 3000810 |  | 3000810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 69031209 |  | 69031209 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposit |  | 3000000 |  | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 27000000 |  |  | 27000000 |
|  Total Securities Lending Reinvestments | 27000000 | 116043127 |  | 143043127 |
|  Total Investments | $983977596 | $130215544 | $— | $1114193140 |
|  Collateral for Securities Loaned (Liability) | $— | $(143031209) | $— | $(143031209) |
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | $(305630) | $— | $— | $(305630) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1112587722 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (c) | 1605418 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 1327540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 117568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 1274997 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1116917070 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 239810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 143031209 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 2145861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 76380 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 208330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 105942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 197370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 146157453 |
|  **Net Assets** | $970759617 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $711511308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 259248309 |
|  **Net Assets** | $970759617 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $502715143 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 287294387 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 26841613 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 153908474 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 31962510 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 18721721 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1729475 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 10167438 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $15.73 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 15.35 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 15.52 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 15.14 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments, excluding affiliated investments, was $927,616,316.

(b) Includes securities loaned at value of $139,686,269.

(c) Identified cost of affiliated investments was $1,138,126.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends | $15844860 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 201837 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 639747 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 16686444 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2606212 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 53252 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 77314 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 787739 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 44288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class G | 497484 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 94793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 8700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 130044 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 4400833 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (29969) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 4370864 |
|  **Net Investment Income** | 12315580 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 66249968 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | 89181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (1861796) |
|  Net realized gain (loss) | 64477353 |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (238080554) |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | (125126) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (545541) |
|  Net change in unrealized appreciation (depreciation) | (238751221) |
|  Net realized and unrealized gain (loss) | (174273868) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(161958288) |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $12315580 | $10498587 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 64477353 | 169797498 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (238751221) | 78361021 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (161958288) | 258657106 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (91716740) | (34746740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (54536369) | (21638582) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (5150333) | (2027108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class G | (28926185) | (10317316) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (180329627) | (68729746) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 82626892 | (84723597) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (259661023) | 105203763 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1230420640 | 1125216877 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $970759617 | $1230420640 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1908949 | $33557319 | 2025222 | $43684010 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 6184541 | 91716740 | 1645985 | 34746740 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (4138209) | (73349023) | (4771622) | (102252964) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3955281 | $51925036 | (1100415) | $(23822214) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 492986 | $8133268 | 452697 | $9467818 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3763725 | 54536369 | 1045342 | 21638582 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2871257) | (49320878) | (4037475) | (84390133) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1385454 | $13348759 | (2539436) | $(53283733) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 67288 | $1151989 | 61594 | $1303802 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 351799 | 5150333 | 97037 | 2027108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (297090) | (5099648) | (310418) | (6561257) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 121997 | $1202674 | (151787) | $(3230347) |
|  **Class G** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 669357 | $11771934 | 1025037 | $21233902 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 2024226 | 28926185 | 503775 | 10317316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1440086) | (24547696) | (1736367) | (35938521) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1253497 | $16150423 | (207555) | $(4387303) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $82626892 |  | $(84723597) |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $22.29 | $19.01 | $18.27 | $16.32 | $20.24 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.23 | 0.21 | 0.21 | 0.26 | 0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.39) | 4.36 | 1.85 | 3.78 | (2.24) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.16) | 4.57 | 2.06 | 4.04 | (1.98) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.22) | (0.24) | (0.24) | (0.26) | (0.26) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.18) | (1.05) | (1.08) | (1.83) | (1.68) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.40) | (1.29) | (1.32) | (2.09) | (1.94) |
|  **Net Asset Value, End of Period** | $15.73 | $22.29 | $19.01 | $18.27 | $16.32 |
|  **Total Return (%)** (b) | (13.26) | 24.40 | 13.39 | 25.95 | (11.30) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.29 | 0.30 | 0.31 | 0.30 | 0.30 |
|  Net ratio of expenses to average net assets (%) (c) | 0.29 | 0.29 | 0.31 | 0.30 | 0.30 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.31 | 1.00 | 1.33 | 1.44 | 1.34 |
|  Portfolio turnover rate (%) | 22 | 33 | 31 | 24 | 25 |
|  Net assets, end of period (in millions) | $502.7 | $624.2 | $553.3 | $528.6 | $442.2 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $21.82 | $18.64 | $17.93 | $16.05 | $19.93 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.18 | 0.16 | 0.17 | 0.21 | 0.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.31) | 4.26 | 1.82 | 3.71 | (2.20) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.13) | 4.42 | 1.99 | 3.92 | (1.99) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.16) | (0.19) | (0.20) | (0.21) | (0.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.18) | (1.05) | (1.08) | (1.83) | (1.68) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.34) | (1.24) | (1.28) | (2.04) | (1.89) |
|  **Net Asset Value, End of Period** | $15.35 | $21.82 | $18.64 | $17.93 | $16.05 |
|  **Total Return (%)** (b) | (13.44) | 24.07 | 13.15 | 25.57 | (11.51) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.54 | 0.55 | 0.56 | 0.55 | 0.55 |
|  Net ratio of expenses to average net assets (%) (c) | 0.54 | 0.54 | 0.56 | 0.55 | 0.55 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.06 | 0.75 | 1.08 | 1.19 | 1.09 |
|  Portfolio turnover rate (%) | 22 | 33 | 31 | 24 | 25 |
|  Net assets, end of period (in millions) | $287.3 | $378.3 | $370.5 | $364.5 | $330.8 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $22.04 | $18.81 | $18.09 | $16.17 | $20.07 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.20 | 0.18 | 0.19 | 0.23 | 0.23 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.35) | 4.31 | 1.82 | 3.75 | (2.22) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.15) | 4.49 | 2.01 | 3.98 | (1.99) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.19) | (0.21) | (0.21) | (0.23) | (0.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.18) | (1.05) | (1.08) | (1.83) | (1.68) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.37) | (1.26) | (1.29) | (2.06) | (1.91) |
|  **Net Asset Value, End of Period** | $15.52 | $22.04 | $18.81 | $18.09 | $16.17 |
|  **Total Return (%)** (b) | (13.40) | 24.23 | 13.21 | 25.77 | (11.44) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.44 | 0.45 | 0.46 | 0.45 | 0.45 |
|  Net ratio of expenses to average net assets (%) (c) | 0.44 | 0.44 | 0.46 | 0.45 | 0.45 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.16 | 0.85 | 1.18 | 1.29 | 1.19 |
|  Portfolio turnover rate (%) | 22 | 33 | 31 | 24 | 25 |
|  Net assets, end of period (in millions) | $26.8 | $35.4 | $33.1 | $33.3 | $30.6 |
|  | **Class G** | **Class G** | **Class G** | **Class G** | **Class G** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $21.59 | $18.46 | $17.78 | $15.93 | $19.80 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.17 | 0.14 | 0.16 | 0.20 | 0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (3.28) | 4.23 | 1.79 | 3.69 | (2.19) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (3.11) | 4.37 | 1.95 | 3.89 | (1.99) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.16) | (0.19) | (0.19) | (0.21) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.18) | (1.05) | (1.08) | (1.83) | (1.68) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.34) | (1.24) | (1.27) | (2.04) | (1.88) |
|  **Net Asset Value, End of Period** | $15.14 | $21.59 | $18.46 | $17.78 | $15.93 |
|  **Total Return (%)** (b) | (13.50) | 24.01 | 13.07 | 25.54 | (11.56) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.59 | 0.60 | 0.61 | 0.60 | 0.60 |
|  Net ratio of expenses to average net assets (%) (c) | 0.59 | 0.59 | 0.61 | 0.60 | 0.60 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.01 | 0.70 | 1.03 | 1.14 | 1.04 |
|  Portfolio turnover rate (%) | 22 | 33 | 31 | 24 | 25 |
|  Net assets, end of period (in millions) | $153.9 | $192.4 | $168.4 | $149.1 | $124 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Mid Cap Stock Index Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $239,810 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $69,031,209, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(116351163) | $— | $— | $— | $(116351163) |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | (26680046) |  |  |  | (26680046) |
|  **Total Borrowings** | $**(143031209)** | $**—** | $**—** | $**—** | $**(143031209)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(143031209) |

---

**3. Investments in Derivative Instruments** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

---

| | | |
|:---|:---|:---|
|  | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets & <br>Liabilities Location** | **Fair Value** |
|  Equity | Unrealized depreciation on futures contracts (a) | $305630 |

---

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Statement of Operations Location—Net Realized Gain (Loss)** | **Equity** |
|  Futures contracts | $(1861796) |
| **Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)** | **Equity** |
|  Futures contracts | $(545541) |

---

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Futures contracts long | $14253090 |

---

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $226137850 | $0 | $301569510 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2022 were $2,606,212.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Management, LLC ("MIM") with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIM an investment subadvisory fee for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum** | **Average Daily Net Assets** |
| 0.030% | On the first $500 million |
| 0.020% | On the next $500 million |
| 0.010% | On amounts over $1 billion |

---

Fees earned by MIM with respect to the Portfolio for the year ended December 31, 2022 were $252,807.

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.005% | Over $500 million and under $1 billion |
| 0.010% | Of the next $1 billion |
| 0.015% | On amounts over $2 billion |

---

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

An identical expense agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Transactions in Securities of Affiliated Issuers** 

A summary of the Portfolio's transactions in the securities of affiliated issuers during the year ended December 31, 2022 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31,<br>2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Ending Value<br>as of<br>December 31,<br>2022** | **Number of<br>shares held<br>December 31,<br>2022** |
|  Brighthouse Financial, Inc. | $2003676 | $– $| (362313) | $89181 | $(125126) | $1605418 | 31313 |

---

**9. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $931653442 |
|  Gross unrealized appreciation | 263437034 |
|  Gross unrealized (depreciation) | (80897336) |
|  Net unrealized appreciation (depreciation) | $182539698 |

---

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $37394706 | $26695900 | $142934921 | $42033846 | $180329627 | $68729746 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $12189409 | $64671754 | $182539698 | $– $| 259400861 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**10. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MetLife Mid Cap Stock Index Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Mid Cap Stock Index Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Mid Cap Stock Index Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MetLife Mid Cap Stock Index Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Management, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the S&P MidCap 400 Index, for the one-, three-, and five-year periods ended October 31, 2022, and the Board noted management's explanation of the tracking error between the Portfolio and the Index. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-29** 

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**Brighthouse Funds Trust II** 

**MetLife Mid Cap Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-30** 

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**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Managed By MetLife Investment Management, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, E and G shares of the MetLife MSCI EAFE Index Portfolio returned -14.47%, -14.64%, -14.60%, and -14.66%, respectively. The Portfolio's benchmark, the MSCI EAFE Index¹, returned -14.45%.

**MARKET ENVIRONMENT / CONDITIONS** 

Equity markets declined in 2022 as the U.S. Federal Reserve (the "Fed") aggressively raised interest rates to address higher inflation. Tight labor markets and ongoing supply and demand imbalances drove inflation to a new 40-year high. In addition, investor concerns about rising recession risks, lingering pandemic effects, and the ongoing Russian invasion of Ukraine were negatives for the market. Factors that supported the equity markets included signs that inflation data was decelerating, and the Fed might begin pausing interest rate increases. In addition, equity investors were hopeful that the end of Chinese lockdowns might eventually boost the global economy.

The U.S. dollar strengthened during the year, which negatively impacted U.S. investors' MSCI EAFE Index return versus the local currency return by approximately 7.45%.

Twenty of the twenty-one countries comprising the MSCI EAFE Index experienced negative returns for the year. Portugal (0.2% beginning weight in the benchmark), up 1.1%, was the best-performing country and the only country with a positive return. Sweden (4.0% beginning weight), down 27.6%; Netherlands (4.9% beginning weight), down 27.6%; and Israel (0.7% beginning weight), down 26.2%, were the worst-performing countries.

The stocks in the MSCI EAFE Index with the largest positive impact on the benchmark return for the year were TotalEnergies, up 32.7%; Shell, up 32.1%; and Novo Nordisk, up 21.6%. The stocks with the largest negative impact were Sony Group, down 39.1%; ASML Holding, down 32.3%; and Roche Holding, down 22.6%.

**PORTFOLIO REVIEW / CURRENT POSITIONING** 

The Portfolio is managed utilizing a stratified sampling strategy versus the MSCI EAFE Index. This strategy seeks to replicate the performance of the Index by owning a subset of Index constituents and neutralizing exposures across countries. The Portfolio is periodically rebalanced for compositional changes in the MSCI EAFE Index. Factors that impact tracking error include sampling, fair value pricing, transaction costs, cash drag, securities lending, net asset value (NAV) rounding, and contributions and withdrawals.

**Stacey Lituchy** 

**Norman Hu** 

**Mirsad Usejnoski** 

Portfolio Managers

*MetLife Investment Management, LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE MSCI EAFE INDEX**![LOGO](g400324g20k76.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**MetLife MSCI EAFE Index Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -14.47 | 1.40 | 4.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -14.64 | 1.16 | 4.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -14.60 | 1.25 | 4.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class G** | -14.66 | 1.12 | 4.08 |
| &nbsp;&nbsp;&nbsp;**MSCI EAFE Index** | -14.45 | 1.54 | 4.67 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Nestle S.A.** | **2.2** |
| **Novo Nordisk A/S - Class B** | **1.5** |
| **Roche Holding AG** | **1.5** |
| **ASML Holding NV** | **1.5** |
| **AstraZeneca plc** | **1.4** |
| **Shell plc** | **1.4** |
| **LVMH Moet Hennessy Louis Vuitton SE** | **1.4** |
| **Novartis AG** | **1.3** |
| **BHP Group, Ltd.** | **1.1** |
| **TotalEnergies SE** | **1.1** |

---

**Top Countries** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Japan** | **21.5** |
| **United Kingdom** | **12.4** |
| **France** | **11.3** |
| **Switzerland** | **10.6** |
| **Germany** | **7.9** |
| **Australia** | **7.7** |
| **Netherlands** | **5.5** |
| **Sweden** | **3.0** |
| **Denmark** | **2.9** |
| **Hong Kong** | **2.7** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MetLife MSCI EAFE Index Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.37% | $1000.00 | $1058.20 | $1.92 |
|  | Hypothetical\* | 0.37% | $1000.00 | $1023.34 | $1.89 |
|  Class B (a) | Actual | 0.62% | $1000.00 | $1057.90 | $3.22 |
|  | Hypothetical\* | 0.62% | $1000.00 | $1022.08 | $3.16 |
|  Class E (a) | Actual | 0.52% | $1000.00 | $1057.70 | $2.70 |
|  | Hypothetical\* | 0.52% | $1000.00 | $1022.58 | $2.65 |
|  Class G (a) | Actual | 0.67% | $1000.00 | $1057.50 | $3.47 |
|  | Hypothetical\* | 0.67% | $1000.00 | $1021.83 | $3.41 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—97.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Australia—7.7%** | **Australia—7.7%** | **Australia—7.7%** |
|  Ampol, Ltd. | 15576 | $297797 |
|  ANZ Group Holdings, Ltd. | 194691 | 3123823 |
|  APA Group | 77620 | 566052 |
|  Aristocrat Leisure, Ltd. | 38272 | 787231 |
|  ASX, Ltd. | 13079 | 597406 |
|  Aurizon Holdings, Ltd. | 132266 | 332288 |
|  BHP Group, Ltd. | 330760 | 10200121 |
|  BlueScope Steel, Ltd. | 33509 | 380435 |
|  Brambles, Ltd. | 91149 | 745630 |
|  Cochlear, Ltd. | 4353 | 601996 |
|  Coles Group, Ltd. | 88152 | 994343 |
|  Commonwealth Bank of Australia | 111058 | 7721226 |
|  Computershare, Ltd. | 32168 | 571598 |
|  CSL, Ltd. | 31354 | 6089496 |
|  Dexus (REIT) | 77269 | 404576 |
|  Endeavour Group, Ltd. | 89555 | 387378 |
|  Fortescue Metals Group, Ltd. | 106038 | 1472444 |
|  Goodman Group (REIT) | 106052 | 1241023 |
|  GPT Group (The) (REIT) | 137557 | 391332 |
|  IDP Education, Ltd. | 14103 | 259590 |
|  IGO, Ltd. | 44707 | 404702 |
|  Insurance Australia Group, Ltd. | 171814 | 553093 |
|  Lendlease Corp., Ltd. | 48652 | 258338 |
|  Lottery Corp., Ltd. (The) (a) | 153298 | 465372 |
|  Macquarie Group, Ltd. | 24188 | 2735059 |
|  Medibank Private, Ltd. | 194632 | 386545 |
|  Mineral Resources, Ltd. | 11249 | 589393 |
|  Mirvac Group (REIT) | 261656 | 377542 |
|  National Australia Bank, Ltd. | 209806 | 4234675 |
|  Newcrest Mining, Ltd. | 59082 | 820456 |
|  Northern Star Resources, Ltd. | 79868 | 582525 |
|  Orica, Ltd. | 24591 | 250286 |
|  Origin Energy, Ltd. | 123597 | 646330 |
|  Pilbara Minerals, Ltd. (a) | 166420 | 422390 |
|  Qantas Airways, Ltd. (a) | 58443 | 234374 |
|  QBE Insurance Group, Ltd. | 90383 | 822348 |
|  Ramsay Health Care, Ltd. | 11010 | 484722 |
|  REA Group, Ltd. | 2790 | 209264 |
|  Reece, Ltd. | 8949 | 85720 |
|  Rio Tinto, Ltd. | 24091 | 1891089 |
|  Santos, Ltd. | 208207 | 1016887 |
|  Scentre Group (REIT) | 344461 | 667134 |
|  Seek, Ltd. | 23745 | 336701 |
|  Sonic Healthcare, Ltd. | 30246 | 614246 |
|  South32, Ltd. | 315794 | 851438 |
|  Stockland (REIT) | 162137 | 398766 |
|  Suncorp Group, Ltd. | 76841 | 627609 |
|  Telstra Corp., Ltd. | 272889 | 738101 |
|  Transurban Group | 203784 | 1792318 |
|  Treasury Wine Estates, Ltd. | 53467 | 492091 |
|  Vicinity Centres (REIT) | 256796 | 348015 |
|  Washington H Soul Pattinson & Co., Ltd. | 14627 | 274129 |
|  Wesfarmers, Ltd. | 72538 | 2256074 |
|  Westpac Banking Corp. | 231763 | 3630715 |
|  WiseTech Global, Ltd. | 10682 | 366895 |
|  Woodside Energy Group, Ltd. | 124551 | 3001573 |
|  Woolworths Group, Ltd. | 78303 | 1781042 |
|  |  | 72813742 |
| **Austria—0.2%** | **Austria—0.2%** | **Austria—0.2%** |
|  Erste Group Bank AG | 21338 | $678384 |
|  OMV AG | 9828 | 505964 |
|  Verbund AG | 4951 | 416323 |
|  voestalpine AG | 7917 | 208350 |
|  |  | 1809021 |
| **Belgium—0.9%** | **Belgium—0.9%** | **Belgium—0.9%** |
|  Ageas SA | 9698 | 430193 |
|  Anheuser-Busch InBev S.A. | 56977 | 3415114 |
|  D'ieteren Group | 1652 | 317092 |
|  Elia Group S.A. | 2407 | 341005 |
|  Groupe Bruxelles Lambert NV | 6450 | 515118 |
|  KBC Group NV | 14613 | 935456 |
|  Sofina S.A. | 1124 | 247977 |
|  Solvay S.A. | 5192 | 524690 |
|  UCB S.A. | 8488 | 666557 |
|  Umicore S.A. | 13317 | 489837 |
|  Warehouses De Pauw CVA (REIT) | 9872 | 281442 |
|  |  | 8164481 |
| **Chile—0.1%** | **Chile—0.1%** | **Chile—0.1%** |
|  Antofagasta plc | 26957 | 497957 |
| **China—0.6%** | **China—0.6%** | **China—0.6%** |
|  BOC Hong Kong Holdings, Ltd. | 230965 | 785172 |
|  Budweiser Brewing Co. APAC, Ltd. | 120500 | 379096 |
|  ESR Group, Ltd. | 122000 | 256091 |
|  Futu Holdings, Ltd. (ADR) (a) | 3900 | 158535 |
|  Prosus NV (a) | 54410 | 3724376 |
|  SITC International Holdings Co., Ltd. | 93000 | 205297 |
|  |  | 5508567 |
| **Denmark—2.9%** | **Denmark—2.9%** | **Denmark—2.9%** |
|  AP Moller - Maersk A/S - Class A | 208 | 460077 |
|  AP Moller - Maersk A/S - Class B | 351 | 785987 |
|  Carlsberg AS - Class B | 6663 | 879360 |
|  Chr Hansen Holding A/S | 7473 | 537121 |
|  Coloplast A/S - Class B | 7704 | 899940 |
|  Danske Bank A/S | 41066 | 806580 |
|  Demant A/S (a) | 7349 | 203737 |
|  DSV A/S | 12335 | 1950496 |
|  Genmab A/S (a) | 4362 | 1842064 |
|  Novo Nordisk A/S - Class B | 108271 | 14615600 |
|  Novozymes A/S - B Shares | 13878 | 702632 |
|  Orsted A/S | 12362 | 1118176 |
|  Pandora A/S | 6075 | 427314 |
|  Tryg A/S | 25298 | 598220 |
|  Vestas Wind Systems A/S | 67020 | 1952151 |
|  |  | 27779455 |
| **Finland—1.3%** | **Finland—1.3%** | **Finland—1.3%** |
|  Elisa Oyj | 8457 | 446928 |
|  Fortum Oyj | 30377 | 504502 |
|  Kesko Oyj - B Shares | 19815 | 437166 |
|  Kone Oyj - Class B | 22998 | 1187652 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Finland—(Continued)** | **Finland—(Continued)** | **Finland—(Continued)** | **Finland—(Continued)** |
|  Neste Oyj | 27752 | $| 1277978 |
|  Nokia Oyj | 361104 |  | 1672817 |
|  Nordea Bank Abp | 222923 |  | 2387568 |
|  Orion Oyj - Class B | 8084 |  | 441785 |
|  Sampo Oyj - A Shares | 30295 |  | 1579339 |
|  Stora Enso Oyj - R Shares | 33562 |  | 472732 |
|  UPM-Kymmene Oyj | 35422 |  | 1323858 |
|  Wartsila Oyj Abp | 31392 |  | 264484 |
|  |  |  | 11996809 |
| **France—11.3%** | **France—11.3%** | **France—11.3%** | **France—11.3%** |
|  Accor S.A. (a) | 12886 |  | 319202 |
|  Adevinta ASA (a) | 19048 |  | 125119 |
|  Aeroports de Paris (a) | 2209 |  | 296184 |
|  Air Liquide S.A. | 34341 |  | 4870037 |
|  Airbus SE | 38780 |  | 4597246 |
|  Alstom S.A. (b) | 21565 |  | 527889 |
|  Amundi S.A. | 4463 |  | 252832 |
|  Arkema S.A. | 3712 |  | 333822 |
|  AXA S.A. | 122170 |  | 3394788 |
|  BioMerieux | 3058 |  | 320622 |
|  BNP Paribas S.A. | 73625 |  | 4177277 |
|  Bollore SE | 61874 |  | 345706 |
|  Bouygues S.A. | 15150 |  | 453141 |
|  Bureau Veritas S.A. | 19740 |  | 517970 |
|  Capgemini SE | 10869 |  | 1817433 |
|  Carrefour S.A. | 35510 |  | 592380 |
|  Cie de Saint-Gobain | 30898 |  | 1512365 |
|  Cie Generale des Etablissements Michelin SCA | 46552 |  | 1290597 |
|  Covivio (REIT) | 3163 |  | 187773 |
|  Credit Agricole S.A. | 81913 |  | 860867 |
|  Danone S.A. | 41184 |  | 2163247 |
|  Dassault Aviation S.A. | 1830 |  | 309566 |
|  Dassault Systemes SE | 44263 |  | 1591664 |
|  Edenred | 17436 |  | 945929 |
|  Eiffage S.A. | 5728 |  | 563125 |
|  Electricite de France S.A. | 37267 |  | 477296 |
|  Engie S.A. | 116940 |  | 1670046 |
|  EssilorLuxottica S.A. | 19088 |  | 3465460 |
|  Eurazeo S.E. | 2867 |  | 178419 |
|  Gecina S.A. (REIT) | 3288 |  | 333995 |
|  Getlink SE | 25836 |  | 412780 |
|  Hermes International | 2091 |  | 3217059 |
|  Ipsen S.A. | 2947 |  | 316645 |
|  Kering S.A. | 4915 |  | 2507891 |
|  Klepierre S.A. (REIT) (a) | 12682 |  | 292464 |
|  L'Oreal S.A. | 15849 |  | 5668718 |
|  La Francaise des Jeux SAEM | 6363 |  | 254870 |
|  Legrand S.A. | 17126 |  | 1374819 |
|  LVMH Moet Hennessy Louis Vuitton SE | 18149 |  | 13144836 |
|  Orange S.A. | 128034 |  | 1269287 |
|  Pernod Ricard S.A. | 13684 |  | 2681681 |
|  Publicis Groupe S.A. | 15420 |  | 976256 |
|  Remy Cointreau S.A. | 1206 |  | 202732 |
|  Renault S.A. (a) | 14189 |  | 471338 |
| **France—(Continued)** | **France—(Continued)** | **France—(Continued)** | **France—(Continued)** |
|  Safran S.A. | 22701 |  | 2828310 |
|  Sanofi | 74850 |  | 7220882 |
|  Sartorius Stedim Biotech | 1739 |  | 564863 |
|  Schneider Electric SE | 35602 |  | 4992077 |
|  Societe Generale S.A. | 53796 |  | 1345714 |
|  Sodexo S.A. (b) | 5109 |  | 487280 |
|  Teleperformance | 3877 |  | 922383 |
|  Thales S.A. | 6713 |  | 855600 |
|  TotalEnergies SE (b) | 163249 |  | 10158752 |
|  UBISOFT Entertainment S.A. (a) | 7194 |  | 203591 |
|  Unibail-Rodamco-Westfield (a) | 7986 |  | 415458 |
|  Valeo | 15665 |  | 278391 |
|  Veolia Environnement S.A. | 42002 |  | 1075827 |
|  Vinci S.A. | 35298 |  | 3514850 |
|  Vivendi SE | 49997 |  | 476995 |
|  Wendel S.E. | 1813 |  | 169409 |
|  Worldline S.A. (a) | 15808 |  | 614990 |
|  |  |  | 107408745 |
| **Germany—7.5%** | **Germany—7.5%** | **Germany—7.5%** | **Germany—7.5%** |
|  Adidas AG | 11474 |  | 1561635 |
|  Allianz SE | 26818 |  | 5749334 |
|  Aroundtown S.A. | 63611 |  | 148054 |
|  BASF SE | 60446 |  | 2991823 |
|  Bayer AG | 64288 |  | 3309426 |
|  Bayerische Motoren Werke AG | 21740 |  | 1934606 |
|  Bechtle AG | 5943 |  | 209667 |
|  Beiersdorf AG | 6632 |  | 758758 |
|  Brenntag SE | 9778 |  | 623295 |
|  Carl Zeiss Meditec AG | 2898 |  | 364675 |
|  Commerzbank AG (a) | 70392 |  | 663633 |
|  Continental AG | 7262 |  | 432578 |
|  Covestro AG | 13256 |  | 517066 |
|  Daimler Truck Holding AG (a) | 28970 |  | 894902 |
|  Delivery Hero SE (a) | 11033 |  | 526982 |
|  Deutsche Bank AG | 133660 |  | 1510442 |
|  Deutsche Boerse AG | 12471 |  | 2145324 |
|  Deutsche Lufthansa AG (a) | 35564 |  | 294661 |
|  Deutsche Post AG | 65921 |  | 2473970 |
|  Deutsche Telekom AG | 214518 |  | 4266085 |
|  E.ON SE | 144559 |  | 1438447 |
|  Evonik Industries AG | 12954 |  | 247969 |
|  Fresenius Medical Care AG & Co. KGaA | 13633 |  | 444577 |
|  Fresenius SE & Co. KGaA | 27953 |  | 784103 |
|  GEA Group AG | 9989 |  | 406814 |
|  Hannover Rueck SE | 4237 |  | 839752 |
|  HeidelbergCement AG | 9539 |  | 542415 |
|  HelloFresh SE (a) | 10721 |  | 234339 |
|  Henkel AG & Co. KGaA | 6878 |  | 442268 |
|  Infineon Technologies AG | 86668 |  | 2631815 |
|  Knorr-Bremse AG | 5273 |  | 287281 |
|  LEG Immobilien SE | 5050 |  | 328106 |
|  Mercedes-Benz Group AG | 53250 |  | 3484007 |
|  Merck KGaA | 8617 |  | 1663781 |
|  MTU Aero Engines AG | 3546 |  | 765203 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Germany—Continued)** | **Germany—Continued)** | **Germany—Continued)** | **Germany—Continued)** |
|  Muenchener Rueckversicherungs-Gesellschaft AG | 9297 | $| 3014011 |
|  Nemetschek SE | 4238 |  | 215813 |
|  Puma SE | 7160 |  | 433185 |
|  Rational AG | 371 |  | 219226 |
|  Rheinmetall AG | 2891 |  | 574122 |
|  RWE AG | 41461 |  | 1838126 |
|  SAP SE | 68518 |  | 7049879 |
|  Scout24 SE | 5930 |  | 297050 |
|  Siemens AG | 50197 |  | 6946147 |
|  Siemens Energy AG (a) (b) | 28411 |  | 532958 |
|  Siemens Healthineers AG | 18539 |  | 924659 |
|  Symrise AG | 8326 |  | 903098 |
|  Telefonica Deutschland Holding AG | 73147 |  | 179687 |
|  Volkswagen AG | 1994 |  | 314287 |
|  Vonovia SE | 44731 |  | 1051040 |
|  Zalando SE (a) | 15086 |  | 533216 |
|  |  |  | 70944297 |
| **Hong Kong—2.7%** | **Hong Kong—2.7%** | **Hong Kong—2.7%** | **Hong Kong—2.7%** |
|  AIA Group, Ltd. | 787200 |  | 8673141 |
|  CK Asset Holdings, Ltd. | 126940 |  | 781595 |
|  CK Hutchison Holdings, Ltd. | 176440 |  | 1059296 |
|  CK Infrastructure Holdings, Ltd. | 49500 |  | 259115 |
|  CLP Holdings, Ltd. | 111377 |  | 812747 |
|  Galaxy Entertainment Group, Ltd. | 128000 |  | 847606 |
|  Hang Lung Properties, Ltd. | 142000 |  | 275721 |
|  Hang Seng Bank, Ltd. | 46300 |  | 766669 |
|  Henderson Land Development Co., Ltd. | 100311 |  | 350268 |
|  HKT Trust & HKT, Ltd. | 253980 |  | 310457 |
|  Hong Kong & China Gas Co., Ltd. | 739531 |  | 703144 |
|  Hong Kong Exchanges & Clearing, Ltd. | 78700 |  | 3401250 |
|  Hongkong Land Holdings, Ltd. | 53100 |  | 243523 |
|  Jardine Matheson Holdings, Ltd. | 10400 |  | 528817 |
|  Link REIT (REIT) | 133041 |  | 976919 |
|  MTR Corp., Ltd. | 110500 |  | 585500 |
|  New World Development Co., Ltd. | 115926 |  | 326838 |
|  Power Assets Holdings, Ltd. | 93049 |  | 509704 |
|  Sino Land Co., Ltd. | 233600 |  | 290966 |
|  Sun Hung Kai Properties, Ltd. | 96250 |  | 1317229 |
|  Swire Pacific, Ltd. - Class A | 36817 |  | 322922 |
|  Swire Properties, Ltd. | 83600 |  | 211507 |
|  Techtronic Industries Co., Ltd. | 90500 |  | 1007783 |
|  WH Group, Ltd. | 554000 |  | 322325 |
|  Wharf Real Estate Investment Co., Ltd. | 117976 |  | 687859 |
|  Xinyi Glass Holdings, Ltd. | 128000 |  | 237985 |
|  |  |  | 25810886 |
| **Ireland—0.8%** | **Ireland—0.8%** | **Ireland—0.8%** | **Ireland—0.8%** |
|  AerCap Holdings NV (a) | 9000 |  | 524880 |
|  AIB Group plc | 70100 |  | 269404 |
|  Bank of Ireland Group plc | 70200 |  | 663625 |
|  CRH plc | 48737 |  | 1923857 |
|  Flutter Entertainment plc (a) | 11454 |  | 1564787 |
|  James Hardie Industries plc | 30071 |  | 536457 |
|  Kerry Group plc - Class A | 10420 |  | 937462 |
| **Ireland —(Continued)** | **Ireland —(Continued)** | **Ireland —(Continued)** | **Ireland —(Continued)** |
|  Kingspan Group plc | 9603 |  | 515511 |
|  Smurfit Kappa Group plc | 16402 |  | 605884 |
|  |  |  | 7541867 |
| **Israel—0.7%** | **Israel—0.7%** | **Israel—0.7%** | **Israel—0.7%** |
|  Azrieli Group, Ltd. | 2906 |  | 192339 |
|  Bank Hapoalim B.M. | 79475 |  | 714249 |
|  Bank Leumi Le-Israel B.M. | 98212 |  | 815565 |
|  Bezeq The Israeli Telecommunication Corp., Ltd. | 135572 |  | 233001 |
|  Check Point Software Technologies, Ltd. (a) | 6600 |  | 832656 |
|  CyberArk Software, Ltd. (a) | 2700 |  | 350055 |
|  Elbit Systems, Ltd. | 1811 |  | 293585 |
|  ICL Group, Ltd. | 48759 |  | 350281 |
|  Israel Discount Bank, Ltd. - Class A | 83247 |  | 435858 |
|  Mizrahi Tefahot Bank, Ltd. | 9874 |  | 318656 |
|  Nice, Ltd. (a) | 4264 |  | 823450 |
|  Teva Pharmaceutical Industries, Ltd. (ADR) (a) | 75753 |  | 690867 |
|  Tower Semiconductor, Ltd. (a) | 7437 |  | 323293 |
|  Wix.com, Ltd. (a) | 3600 |  | 276588 |
|  |  |  | 6650443 |
| **Italy—1.9%** | **Italy—1.9%** | **Italy—1.9%** | **Italy—1.9%** |
|  Amplifon S.p.A. | 9033 |  | 269036 |
|  Assicurazioni Generali S.p.A. | 74881 |  | 1325864 |
|  Davide Campari-Milano NV | 36167 |  | 365465 |
|  DiaSorin S.p.A. | 1857 |  | 259440 |
|  Enel S.p.A. | 530048 |  | 2842228 |
|  Eni S.p.A. | 165402 |  | 2355579 |
|  Ferrari NV | 8221 |  | 1753738 |
|  FinecoBank Banca Fineco S.p.A. | 42655 |  | 708744 |
|  Infrastrutture Wireless Italiane S.p.A. | 24381 |  | 245547 |
|  Intesa Sanpaolo S.p.A. | 1095884 |  | 2437597 |
|  Mediobanca Banca di Credito Finanziario S.p.A. | 44816 |  | 429319 |
|  Moncler S.p.A. | 13551 |  | 719173 |
|  Nexi S.p.A. (a) | 32431 |  | 254167 |
|  Poste Italiane S.p.A. | 29264 |  | 284529 |
|  Prysmian S.p.A. | 17303 |  | 638627 |
|  Recordati Industria Chimica e Farmaceutica S.p.A. | 5644 |  | 233904 |
|  Snam S.p.A. | 137424 |  | 665226 |
|  Telecom Italia S.p.A. (a) | 653614 |  | 151413 |
|  Terna - Rete Elettrica Nazionale | 81518 |  | 601573 |
|  UniCredit S.p.A. | 126018 |  | 1786650 |
|  |  |  | 18327819 |
| **Japan—21.4%** | **Japan—21.4%** | **Japan—21.4%** | **Japan—21.4%** |
|  Advantest Corp. | 12400 |  | 796268 |
|  Aeon Co., Ltd. | 43500 |  | 910770 |
|  AGC, Inc. (b) | 12900 |  | 425057 |
|  Aisin Corp. | 11100 |  | 294075 |
|  Ajinomoto Co., Inc. | 28400 |  | 861324 |
|  ANA Holdings, Inc. (a) (b) | 8400 |  | 177996 |
|  Asahi Group Holdings, Ltd. | 30500 |  | 944622 |
|  Asahi Intecc Co., Ltd. | 14200 |  | 232762 |
|  Asahi Kasei Corp. | 85900 |  | 607144 |
|  Astellas Pharma, Inc. | 120300 |  | 1815331 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Azbil Corp. | 4900 | $123417 |
|  Bandai Namco Holdings, Inc. | 13500 | 842082 |
|  Bridgestone Corp. (b) | 36400 | 1288978 |
|  Brother Industries, Ltd. | 16400 | 246841 |
|  Canon, Inc. (b) | 63300 | 1361421 |
|  Capcom Co., Ltd. | 8800 | 280720 |
|  Central Japan Railway Co. | 9800 | 1199179 |
|  Chiba Bank, Ltd. (The) | 39400 | 287214 |
|  Chubu Electric Power Co., Inc. | 45700 | 470389 |
|  Chugai Pharmaceutical Co., Ltd. (b) | 42700 | 1079215 |
|  Concordia Financial Group, Ltd. | 73300 | 305068 |
|  CyberAgent, Inc. | 29600 | 261873 |
|  Dai Nippon Printing Co., Ltd. | 13000 | 259228 |
|  Dai-ichi Life Holdings, Inc. | 65300 | 1474942 |
|  Daifuku Co., Ltd. | 7400 | 346394 |
|  Daiichi Sankyo Co., Ltd. | 115000 | 3665775 |
|  Daikin Industries, Ltd. | 16000 | 2448121 |
|  Daito Trust Construction Co., Ltd. | 4100 | 419128 |
|  Daiwa House Industry Co., Ltd. | 37400 | 853591 |
|  Daiwa House REIT Investment Corp. (REIT) | 136 | 301922 |
|  Daiwa Securities Group, Inc. | 73700 | 324976 |
|  Denso Corp. | 27700 | 1350643 |
|  Dentsu Group, Inc. (b) | 14400 | 452178 |
|  Disco Corp. | 1900 | 543270 |
|  East Japan Railway Co. | 20100 | 1140717 |
|  Eisai Co., Ltd. | 16800 | 1094501 |
|  ENEOS Holdings, Inc. | 204100 | 691225 |
|  FANUC Corp. | 12700 | 1885245 |
|  Fast Retailing Co., Ltd. | 3800 | 2290512 |
|  Fuji Electric Co., Ltd. | 8600 | 325742 |
|  FUJIFILM Holdings Corp. | 23700 | 1189351 |
|  Fujitsu, Ltd. | 13100 | 1725538 |
|  GLP J-REIT | 268 | 306688 |
|  GMO Payment Gateway, Inc. | 3000 | 248114 |
|  Hakuhodo DY Holdings, Inc. | 17600 | 177309 |
|  Hamamatsu Photonics KK | 9600 | 459331 |
|  Hankyu Hanshin Holdings, Inc. | 16400 | 484961 |
|  Hikari Tsushin, Inc. | 1500 | 209886 |
|  Hirose Electric Co., Ltd. | 1515 | 188496 |
|  Hitachi Construction Machinery Co., Ltd. | 8900 | 199493 |
|  Hitachi, Ltd. | 63500 | 3178553 |
|  Honda Motor Co., Ltd. | 106900 | 2431118 |
|  Hoshizaki Corp. | 8200 | 287178 |
|  Hoya Corp. | 23600 | 2271222 |
|  Hulic Co., Ltd. (b) | 25800 | 201965 |
|  Ibiden Co., Ltd. | 7800 | 282638 |
|  Idemitsu Kosan Co., Ltd. | 14768 | 343740 |
|  Iida Group Holdings Co., Ltd. | 4500 | 67655 |
|  Inpex Corp. (b) | 71100 | 754625 |
|  Isuzu Motors, Ltd. | 39100 | 454245 |
|  Ito En, Ltd. | 4000 | 145164 |
|  ITOCHU Corp. | 78000 | 2425789 |
|  Itochu Techno-Solutions Corp. | 7100 | 165404 |
|  Japan Airlines Co., Ltd. (a) (b) | 8400 | 171395 |
|  Japan Exchange Group, Inc. | 31100 | 447068 |
|  Japan Metropolitan Fund Investment Corp. | 494 | 390518 |
|  Japan Post Bank Co., Ltd. | 30800 | 263225 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Japan Post Holdings Co., Ltd. | 156000 | 1308140 |
|  Japan Post Insurance Co., Ltd. | 16000 | 280078 |
|  Japan Real Estate Investment Corp. (REIT) | 85 | 370289 |
|  Japan Tobacco, Inc. (b) | 78700 | 1582817 |
|  JFE Holdings, Inc. | 35100 | 405376 |
|  JSR Corp. | 9800 | 192110 |
|  Kajima Corp. | 20400 | 236037 |
|  Kakaku.com, Inc. | 10700 | 171179 |
|  Kansai Electric Power Co., Inc. (The) | 49800 | 480830 |
|  Kao Corp. (b) | 31800 | 1266171 |
|  KDDI Corp. | 105800 | 3180626 |
|  Keio Corp. | 6700 | 245023 |
|  Keisei Electric Railway Co., Ltd. | 10000 | 284519 |
|  Keyence Corp. | 12800 | 4984484 |
|  Kikkoman Corp. | 10200 | 536283 |
|  Kintetsu Group Holdings Co., Ltd. | 12612 | 415805 |
|  Kirin Holdings Co., Ltd. (b) | 51100 | 778683 |
|  Kobayashi Pharmaceutical Co., Ltd. | 3600 | 246315 |
|  Kobe Bussan Co., Ltd. | 9200 | 264146 |
|  Koei Tecmo Holdings Co., Ltd. | 7800 | 139832 |
|  Koito Manufacturing Co., Ltd. | 15400 | 228169 |
|  Komatsu, Ltd. | 61400 | 1324966 |
|  Konami Group Corp. | 6200 | 280423 |
|  Kose Corp. | 2300 | 248532 |
|  Kubota Corp. (b) | 67200 | 920756 |
|  Kurita Water Industries, Ltd. | 7100 | 293163 |
|  Kyocera Corp. | 21800 | 1082102 |
|  Kyowa Kirin Co., Ltd. | 15200 | 347795 |
|  Lasertec Corp. (b) | 5100 | 842596 |
|  Lixil Corp. | 19000 | 288004 |
|  M3, Inc. | 29000 | 785772 |
|  Makita Corp. | 15900 | 370290 |
|  Marubeni Corp. | 94200 | 1070745 |
|  Mazda Motor Corp. | 37400 | 281197 |
|  McDonald's Holdings Co. Japan, Ltd. (b) | 5400 | 204367 |
|  MEIJI Holdings Co., Ltd. | 7300 | 372856 |
|  MINEBEA MITSUMI, Inc. | 26300 | 392608 |
|  MISUMI Group, Inc. | 19300 | 420808 |
|  Mitsubishi Chemical Group Corp. | 90400 | 464566 |
|  Mitsubishi Corp. | 82700 | 2661192 |
|  Mitsubishi Electric Corp. | 128400 | 1264252 |
|  Mitsubishi Estate Co., Ltd. | 75800 | 975664 |
|  Mitsubishi HC Capital, Inc. | 36000 | 176399 |
|  Mitsubishi Heavy Industries, Ltd. | 19500 | 767555 |
|  Mitsubishi UFJ Financial Group, Inc. | 784188 | 5261889 |
|  Mitsui & Co., Ltd. | 92717 | 2681554 |
|  Mitsui Chemicals, Inc. | 12700 | 283274 |
|  Mitsui Fudosan Co., Ltd. | 61200 | 1112085 |
|  Mitsui OSK Lines, Ltd. | 22800 | 568321 |
|  Mizuho Financial Group, Inc. | 156550 | 2200813 |
|  MonotaRO Co., Ltd. | 18400 | 258804 |
|  MS&AD Insurance Group Holdings, Inc. | 28400 | 904114 |
|  Murata Manufacturing Co., Ltd. | 37700 | 1881277 |
|  NEC Corp. | 15600 | 542888 |
|  Nexon Co., Ltd. (b) | 31800 | 705558 |
|  NGK Insulators, Ltd. | 19300 | 244829 |
|  Nidec Corp. | 29300 | 1517702 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Nihon M&A Center Holdings, Inc. | 22000 | $271427 |
|  Nintendo Co., Ltd. | 71000 | 2957282 |
|  Nippon Building Fund, Inc. (b) | 102 | 453071 |
|  Nippon Express Holdings, Inc. | 3700 | 209874 |
|  Nippon Paint Holdings Co., Ltd. (b) | 54000 | 425006 |
|  Nippon Prologis REIT, Inc. | 143 | 333113 |
|  Nippon Sanso Holdings Corp. | 9600 | 137538 |
|  Nippon Shinyaku Co., Ltd. | 3200 | 181347 |
|  Nippon Steel Corp. | 53000 | 917850 |
|  Nippon Telegraph & Telephone Corp. | 79200 | 2248612 |
|  Nippon Yusen KK (b) | 33300 | 784673 |
|  Nissan Chemical Corp. | 8600 | 376536 |
|  Nissan Motor Co., Ltd. | 154500 | 483497 |
|  Nisshin Seifun Group, Inc. | 15700 | 195773 |
|  Nissin Foods Holdings Co., Ltd. | 4700 | 370132 |
|  Nitori Holdings Co., Ltd. | 4800 | 619197 |
|  Nitto Denko Corp. | 9300 | 532120 |
|  Nomura Holdings, Inc. | 184800 | 684166 |
|  Nomura Real Estate Holdings, Inc. | 9500 | 202012 |
|  Nomura Real Estate Master Fund, Inc. (REIT) | 296 | 365633 |
|  Nomura Research Institute, Ltd. | 24800 | 586407 |
|  NTT Data Corp. | 43680 | 639292 |
|  Obayashi Corp. | 45500 | 342151 |
|  Obic Co., Ltd. | 4200 | 617615 |
|  Odakyu Electric Railway Co., Ltd. | 20800 | 269655 |
|  Oji Holdings Corp. | 53300 | 214456 |
|  Olympus Corp. | 82000 | 1441663 |
|  Omron Corp. | 12600 | 611262 |
|  Ono Pharmaceutical Co., Ltd. | 23800 | 553771 |
|  Open House Group Co., Ltd. | 5600 | 202040 |
|  Oracle Corp. Japan | 3000 | 194149 |
|  Oriental Land Co., Ltd. | 13000 | 1883815 |
|  ORIX Corp. | 78400 | 1257431 |
|  Osaka Gas Co., Ltd. | 25000 | 402194 |
|  Otsuka Corp. | 7400 | 232934 |
|  Otsuka Holdings Co., Ltd. | 26000 | 841935 |
|  Pan Pacific International Holdings Corp. | 26000 | 480072 |
|  Panasonic Holdings Corp. | 140000 | 1166132 |
|  Persol Holdings Co., Ltd. | 13400 | 283052 |
|  Rakuten Group, Inc. (b) | 61500 | 277641 |
|  Recruit Holdings Co., Ltd. | 95700 | 3027367 |
|  Renesas Electronics Corp. (a) | 76900 | 691271 |
|  Resona Holdings, Inc. | 143200 | 782470 |
|  Ricoh Co., Ltd. | 31500 | 240323 |
|  Rohm Co., Ltd. | 5000 | 354902 |
|  SBI Holdings, Inc. | 16511 | 314867 |
|  SCSK Corp. | 11700 | 175655 |
|  Secom Co., Ltd. | 14200 | 805717 |
|  Seiko Epson Corp. | 20000 | 288752 |
|  Sekisui Chemical Co., Ltd. | 25900 | 358475 |
|  Sekisui House, Ltd. | 37700 | 663198 |
|  Seven & i Holdings Co., Ltd. | 49000 | 2084940 |
|  SG Holdings Co., Ltd. | 15100 | 209368 |
|  Shimadzu Corp. | 15600 | 442571 |
|  Shimano, Inc. (b) | 4800 | 760687 |
|  Shimizu Corp. | 39000 | 206662 |
|  Shin-Etsu Chemical Co., Ltd. | 24900 | 3017494 |
| **Japan—(Continued)** | **Japan—(Continued)** | **Japan—(Continued)** |
|  Shionogi & Co., Ltd. | 18100 | 895635 |
|  Shiseido Co., Ltd. | 25500 | 1249942 |
|  Shizuoka Financial Group, Inc. | 25000 | 199865 |
|  SMC Corp. | 3800 | 1599679 |
|  SoftBank Corp. | 188100 | 2115435 |
|  SoftBank Group Corp. | 78900 | 3323409 |
|  Sompo Holdings, Inc. | 20499 | 905349 |
|  Sony Group Corp. | 82000 | 6219574 |
|  Square Enix Holdings Co., Ltd. | 6500 | 300177 |
|  Subaru Corp. | 37600 | 573870 |
|  SUMCO Corp. (b) | 22600 | 300786 |
|  Sumitomo Chemical Co., Ltd. | 105400 | 375381 |
|  Sumitomo Corp. | 70200 | 1157845 |
|  Sumitomo Electric Industries, Ltd. | 45834 | 517149 |
|  Sumitomo Metal Mining Co., Ltd. | 16600 | 587388 |
|  Sumitomo Mitsui Financial Group, Inc. | 85700 | 3434768 |
|  Sumitomo Mitsui Trust Holdings, Inc. | 23126 | 802611 |
|  Sumitomo Realty & Development Co., Ltd. | 20300 | 475432 |
|  Suntory Beverage & Food, Ltd. | 10400 | 352963 |
|  Suzuki Motor Corp. | 23000 | 736029 |
|  Sysmex Corp. | 10800 | 654317 |
|  T&D Holdings, Inc. | 28200 | 403704 |
|  Taisei Corp. | 10300 | 330041 |
|  Takeda Pharmaceutical Co., Ltd. | 99348 | 3086466 |
|  TDK Corp. | 26300 | 849424 |
|  Terumo Corp. | 41500 | 1167302 |
|  TIS, Inc. | 16500 | 435018 |
|  Tobu Railway Co., Ltd. | 12400 | 288783 |
|  Toho Co., Ltd. | 8500 | 327161 |
|  Tokio Marine Holdings, Inc. | 120500 | 2565709 |
|  Tokyo Electric Power Co. Holdings, Inc. (a) | 100300 | 360191 |
|  Tokyo Electron, Ltd. | 9600 | 2836572 |
|  Tokyo Gas Co., Ltd. | 26000 | 508399 |
|  Tokyu Corp. | 37500 | 469781 |
|  TOPPAN, Inc. | 17200 | 252567 |
|  Toray Industries, Inc. | 92400 | 510190 |
|  Toshiba Corp. | 25100 | 875124 |
|  Tosoh Corp. | 18900 | 223056 |
|  TOTO, Ltd. | 10400 | 350062 |
|  Toyota Industries Corp. | 10200 | 553142 |
|  Toyota Motor Corp. | 693200 | 9423440 |
|  Toyota Tsusho Corp. | 13900 | 506812 |
|  Trend Micro, Inc. (b) | 8900 | 413961 |
|  Unicharm Corp. | 25800 | 984074 |
|  USS Co., Ltd. | 8700 | 137138 |
|  Welcia Holdings Co., Ltd. | 6200 | 143649 |
|  West Japan Railway Co. | 14600 | 633839 |
|  Yakult Honsha Co., Ltd. | 9100 | 590263 |
|  Yamaha Corp. | 9100 | 333934 |
|  Yamaha Motor Co., Ltd. (b) | 18700 | 422687 |
|  Yamato Holdings Co., Ltd. | 14100 | 222954 |
|  Yaskawa Electric Corp. | 14600 | 467211 |
|  Yokogawa Electric Corp. | 16300 | 256865 |
|  Z Holdings Corp. | 177000 | 445080 |
|  ZOZO, Inc. | 8400 | 207443 |
|  |  | 203778044 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Jordan—0.0%** | **Jordan—0.0%** | **Jordan—0.0%** |
|  Hikma Pharmaceuticals plc | 11270 | $210568 |
| **Luxembourg—0.2%** | **Luxembourg—0.2%** | **Luxembourg—0.2%** |
|  ArcelorMittal S.A. | 32844 | 856169 |
|  Eurofins Scientific SE | 8661 | 621831 |
|  Tenaris S.A. | 27400 | 479420 |
|  |  | 1957420 |
| **Macau—0.1%** | **Macau—0.1%** | **Macau—0.1%** |
|  Sands China, Ltd. (a) | 176400 | 584445 |
| **Netherlands—5.5%** | **Netherlands—5.5%** | **Netherlands—5.5%** |
|  ABN AMRO Bank NV | 29995 | 413044 |
|  Adyen NV (a) | 1438 | 1983979 |
|  Aegon NV | 119047 | 602102 |
|  Akzo Nobel NV | 12124 | 806568 |
|  Argenx SE (a) | 3599 | 1352132 |
|  ASM International NV | 2848 | 718847 |
|  ASML Holding NV | 26568 | 14338345 |
|  Euronext NV | 5789 | 427825 |
|  EXOR NV (a) | 7620 | 554574 |
|  Heineken Holding NV | 7046 | 540916 |
|  Heineken NV | 16675 | 1561959 |
|  IMCD NV | 3850 | 548273 |
|  ING Groep NV | 247118 | 3005928 |
|  JDE Peet's NV | 5438 | 156711 |
|  Just Eat Takeaway.com NV (a) | 13092 | 277951 |
|  Koninklijke Ahold Delhaize NV | 69743 | 1997996 |
|  Koninklijke DSM NV | 11244 | 1374343 |
|  Koninklijke KPN NV | 216687 | 668417 |
|  Koninklijke Philips NV | 60898 | 911300 |
|  NN Group NV | 17632 | 717962 |
|  OCI NV | 6992 | 248760 |
|  Randstad NV | 8273 | 503696 |
|  Shell plc | 476517 | 13473763 |
|  Stellantis NV (Milan-Traded Shares) | 145530 | 2055260 |
|  Universal Music Group NV | 47580 | 1145108 |
|  Wolters Kluwer NV | 17273 | 1798928 |
|  |  | 52184687 |
| **New Zealand—0.2%** | **New Zealand—0.2%** | **New Zealand—0.2%** |
|  Auckland International Airport, Ltd. (a) | 82113 | 406366 |
|  Fisher & Paykel Healthcare Corp., Ltd. | 38953 | 552308 |
|  Mercury NZ, Ltd. | 47715 | 167755 |
|  Meridian Energy, Ltd. | 89813 | 295694 |
|  Spark New Zealand, Ltd. | 124065 | 423614 |
|  Xero, Ltd. (a) | 8809 | 418835 |
|  |  | 2264572 |
| **Norway—0.7%** | **Norway—0.7%** | **Norway—0.7%** |
|  Aker BP ASA | 20886 | 647457 |
|  DNB Bank ASA | 60120 | 1183715 |
|  Equinor ASA | 61330 | 2187705 |
|  Gjensidige Forsikring ASA | 14357 | 280188 |
| **Norway—(Continued)** | **Norway—(Continued)** | **Norway—(Continued)** |
|  Kongsberg Gruppen ASA | 6272 | 264727 |
|  Mowi ASA | 23708 | 402550 |
|  Norsk Hydro ASA | 91188 | 679196 |
|  Orkla ASA | 49268 | 354000 |
|  Salmar ASA | 4072 | 159240 |
|  Telenor ASA | 48193 | 448065 |
|  Yara International ASA | 10920 | 477489 |
|  |  | 7084332 |
| **Portugal—0.2%** | **Portugal—0.2%** | **Portugal—0.2%** |
|  EDP - Energias de Portugal S.A. | 189377 | 940617 |
|  Galp Energia SGPS S.A. | 33266 | 448792 |
|  Jeronimo Martins SGPS S.A. | 18255 | 393547 |
|  |  | 1782956 |
| **Singapore—1.4%** | **Singapore—1.4%** | **Singapore—1.4%** |
|  Ascendas Real Estate Investment Trust (REIT) | 228844 | 467903 |
|  CapitaLand Integrated Commercial Trust (REIT) | 348942 | 531346 |
|  Capitaland Investment, Ltd. | 170600 | 471159 |
|  City Developments, Ltd. | 27200 | 166338 |
|  DBS Group Holdings, Ltd. | 120967 | 3058341 |
|  Genting Singapore, Ltd. | 396700 | 282718 |
|  Grab Holdings, Ltd. - Class A (a) | 73200 | 235704 |
|  Jardine Cycle & Carriage, Ltd. | 6000 | 128021 |
|  Keppel Corp., Ltd. | 86000 | 465889 |
|  Mapletree Pan Asia Commercial Trust (REIT) | 147200 | 183451 |
|  Mapletree Logistics Trust (REIT) | 217249 | 257816 |
|  Oversea-Chinese Banking Corp., Ltd. | 227364 | 2060293 |
|  Singapore Airlines, Ltd. | 87540 | 360271 |
|  Singapore Exchange, Ltd. | 54400 | 363303 |
|  Singapore Technologies Engineering, Ltd. | 106000 | 264938 |
|  Singapore Telecommunications, Ltd. | 541620 | 1038436 |
|  United Overseas Bank, Ltd. | 74792 | 1712954 |
|  UOL Group, Ltd. | 32900 | 164997 |
|  Venture Corp., Ltd. | 20500 | 261005 |
|  Wilmar International, Ltd. | 144000 | 448029 |
|  |  | 12922912 |
| **South Africa—0.3%** | **South Africa—0.3%** | **South Africa—0.3%** |
|  Anglo American plc | 84044 | 3270737 |
| **Spain—2.5%** |  |  |
|  Acciona S.A. | 1638 | 300367 |
|  ACS Actividades de Construccion y Servicios S.A. | 12014 | 343201 |
|  Aena SME S.A. (a) | 5006 | 628574 |
|  Amadeus IT Group S.A. (a) | 29027 | 1492449 |
|  Banco Bilbao Vizcaya Argentaria S.A. | 397996 | 2396224 |
|  Banco Santander S.A. | 1101655 | 3289411 |
|  CaixaBank S.A. | 294221 | 1151448 |
|  Cellnex Telecom S.A. (a) | 35254 | 1168889 |
|  Corp. ACCIONA Energias Renovables S.A. | 4320 | 166459 |
|  EDP Renovaveis S.A. | 18903 | 416619 |
|  Enagas S.A. (b) | 15136 | 250901 |
|  Endesa S.A. | 23384 | 439924 |
|  Ferrovial S.A. | 31961 | 833579 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Spain—(Continued)** | | | |
|  Grifols S.A. (a) | 21632 | $| 250099 |
|  Iberdrola S.A. | 396465 |  | 4623785 |
|  Industria de Diseno Textil S.A. | 69851 |  | 1854442 |
|  Naturgy Energy Group S.A. | 9652 |  | 250317 |
|  Red Electrica Corp. S.A. | 29209 |  | 505868 |
|  Repsol S.A. | 95651 |  | 1520243 |
|  Siemens Gamesa Renewable Energy S.A. (a) (b) | 12710 |  | 244825 |
|  Telefonica S.A. | 358981 |  | 1296226 |
|  |  |  | 23423850 |
| **Sweden—3.0%** | **Sweden—3.0%** | **Sweden—3.0%** | **Sweden—3.0%** |
|  Alfa Laval AB | 19004 |  | 550725 |
|  Assa Abloy AB - Class B | 63945 |  | 1377862 |
|  Atlas Copco AB - A Shares | 177060 |  | 2099365 |
|  Atlas Copco AB - B Shares | 102140 |  | 1092908 |
|  Boliden AB | 16516 |  | 621992 |
|  Electrolux AB - Series B | 17118 |  | 232022 |
|  Embracer Group AB (a) | 36038 |  | 163146 |
|  Epiroc AB - A Shares | 42693 |  | 781335 |
|  Epiroc AB - B Shares | 28433 |  | 458979 |
|  EQT AB | 18476 |  | 394347 |
|  Essity AB - Class B | 38912 |  | 1022865 |
|  Evolution AB | 11608 |  | 1135352 |
|  Fastighets AB Balder - B Shares (a) | 44076 |  | 206562 |
|  Getinge AB - B Shares | 15453 |  | 322253 |
|  H & M Hennes & Mauritz AB - B Shares | 51313 |  | 554720 |
|  Hexagon AB - B Shares | 127678 |  | 1344098 |
|  Holmen AB - B Shares | 6226 |  | 248058 |
|  Husqvarna AB - B Shares | 25677 |  | 181184 |
|  Industrivarden AB - A Shares | 9265 |  | 226168 |
|  Industrivarden AB - C Shares | 10214 |  | 248885 |
|  Indutrade AB | 18127 |  | 368900 |
|  Investment AB Latour - B Shares | 10798 |  | 205293 |
|  Investor AB - A Shares (b) | 33691 |  | 629115 |
|  Investor AB - B Shares | 119478 |  | 2170198 |
|  Kinnevik AB - B Shares (a) | 17515 |  | 242143 |
|  L E Lundbergforetagen AB - B Shares | 6090 |  | 259982 |
|  Lifco AB - B Shares | 15748 |  | 262517 |
|  Nibe Industrier AB - B Shares | 100180 |  | 938165 |
|  Sagax AB - Class B | 10880 |  | 248164 |
|  Sandvik AB | 65549 |  | 1185246 |
|  Securitas AB - B Shares | 33726 |  | 281167 |
|  Skandinaviska Enskilda Banken AB - Class A | 108010 |  | 1244837 |
|  Skanska AB - B Shares | 24008 |  | 381648 |
|  SKF AB - B Shares | 25976 |  | 398101 |
|  Svenska Cellulosa AB SCA - Class B | 40209 |  | 509165 |
|  Svenska Handelsbanken AB - A Shares | 98487 |  | 992465 |
|  Swedbank AB - A Shares | 57325 |  | 975313 |
|  Swedish Orphan Biovitrum AB (a) | 11210 |  | 231949 |
|  Tele2 AB - B Shares | 34110 |  | 278342 |
|  Telefonaktiebolaget LM Ericsson - B Shares | 194193 |  | 1138942 |
|  Telia Co. AB | 176416 |  | 452168 |
|  Volvo AB - A Shares | 14069 |  | 268222 |
|  Volvo AB - B Shares | 97294 |  | 1764264 |
|  Volvo Car AB - Class B (a) | 39547 |  | 180944 |
|  |  |  | 28870076 |
| **Switzerland—10.6%** | **Switzerland—10.6%** | **Switzerland—10.6%** | **Switzerland—10.6%** |
|  ABB, Ltd. | 103104 |  | 3138452 |
|  Adecco Group AG | 10992 |  | 361251 |
|  Alcon, Inc. | 32764 |  | 2249041 |
|  Bachem Holding AG - Class B | 2095 |  | 182612 |
|  Baloise Holding AG | 2719 |  | 419751 |
|  Banque Cantonale Vaudoise | 1980 |  | 190053 |
|  Barry Callebaut AG | 251 |  | 496997 |
|  BKW AG | 1390 |  | 189549 |
|  Chocoladefabriken Lindt & Spruengli AG | 7 |  | 720514 |
|  Chocoladefabriken Lindt & Spruengli AG (Participation Certificate) | 72 |  | 733282 |
|  Cie Financiere Richemont S.A. - Class A | 33836 |  | 4375966 |
|  Clariant AG (a) | 13958 |  | 221987 |
|  Coca-Cola HBC AG (a) | 13800 |  | 327745 |
|  Credit Suisse Group AG (b) | 220600 |  | 662391 |
|  EMS-Chemie Holding AG | 423 |  | 285730 |
|  Geberit AG | 2335 |  | 1105060 |
|  Givaudan S.A. | 587 |  | 1788542 |
|  Glencore plc | 644427 |  | 4287575 |
|  Holcim AG (a) | 35449 |  | 1826918 |
|  Julius Baer Group, Ltd. | 13191 |  | 766284 |
|  Kuehne & Nagel International AG | 3794 |  | 881140 |
|  Logitech International S.A. | 11995 |  | 744054 |
|  Lonza Group AG | 4907 |  | 2413681 |
|  Nestle S.A. | 180390 |  | 20820042 |
|  Novartis AG | 141402 |  | 12800764 |
|  Partners Group Holding AG | 1502 |  | 1334319 |
|  Roche Holding AG | 45921 |  | 14422639 |
|  Roche Holding AG (Bearer Shares) | 1770 |  | 685593 |
|  Schindler Holding AG | 1428 |  | 256340 |
|  Schindler Holding AG (Participation Certificate) | 2909 |  | 545895 |
|  SGS S.A. | 404 |  | 934833 |
|  SIG Group AG (a) | 19990 |  | 437858 |
|  Sika AG | 9430 |  | 2274006 |
|  Sonova Holding AG | 3655 |  | 869143 |
|  STMicroelectronics NV | 44652 |  | 1582632 |
|  Straumann Holding AG | 7396 |  | 837049 |
|  Swatch Group AG (The) | 4374 |  | 228010 |
|  Swatch Group AG (The) - Bearer Shares | 1701 |  | 482620 |
|  Swiss Life Holding AG | 2117 |  | 1092173 |
|  Swiss Prime Site AG | 4615 |  | 400487 |
|  Swiss Re AG | 20017 |  | 1876675 |
|  Swisscom AG | 1719 |  | 940285 |
|  Temenos AG | 4465 |  | 246500 |
|  UBS Group AG | 219644 |  | 4091639 |
|  VAT Group AG | 1824 |  | 502060 |
|  Zurich Insurance Group AG | 9870 |  | 4713826 |
|  |  |  | 100743963 |
| **Taiwan—0.1%** | **Taiwan—0.1%** | **Taiwan—0.1%** | **Taiwan—0.1%** |
|  Sea, Ltd. (ADR) (a) | 23800 |  | 1238314 |
| **United Arab Emirates—0.0%** |  |  |  |
|  NMC Health plc (a) (c) (d) | 7569 |  | 0 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **United Kingdom—12.4%** | | | |
|  3i Group plc | 62170 | $| 1004383 |
|  abrdn plc | 153329 |  | 347498 |
|  Admiral Group plc | 11968 |  | 307770 |
|  Ashtead Group plc | 28006 |  | 1591884 |
|  Associated British Foods plc | 23588 |  | 447138 |
|  AstraZeneca plc | 101277 |  | 13676065 |
|  Auto Trader Group plc | 59168 |  | 367377 |
|  AVEVA Group plc | 8176 |  | 315971 |
|  Aviva plc | 188703 |  | 1000781 |
|  BAE Systems plc | 204680 |  | 2104821 |
|  Barclays plc | 1020510 |  | 1952200 |
|  Barratt Developments plc | 69622 |  | 332644 |
|  Berkeley Group Holdings plc | 7129 |  | 322969 |
|  BP plc | 1234253 |  | 7141553 |
|  British American Tobacco plc | 140787 |  | 5557733 |
|  British Land Co. plc (The) (REIT) | 61629 |  | 293210 |
|  BT Group plc | 461139 |  | 623020 |
|  Bunzl plc | 23720 |  | 787748 |
|  Burberry Group plc | 23361 |  | 567970 |
|  CNH Industrial NV | 67912 |  | 1087417 |
|  Coca-Cola Europacific Partners plc | 13100 |  | 724692 |
|  Compass Group plc | 116912 |  | 2687961 |
|  Croda International plc | 8925 |  | 709703 |
|  DCC plc | 7008 |  | 344228 |
|  Diageo plc | 149494 |  | 6568514 |
|  Entain plc | 39400 |  | 628566 |
|  Experian plc | 60725 |  | 2056951 |
|  Haleon plc (a) | 337374 |  | 1342704 |
|  Halma plc | 22415 |  | 532918 |
|  Hargreaves Lansdown plc | 27409 |  | 282645 |
|  HSBC Holdings plc (Hong Kong-Traded Shares) | 1313757 |  | 8152206 |
|  Imperial Brands plc | 58302 |  | 1449362 |
|  Informa plc | 90924 |  | 678275 |
|  InterContinental Hotels Group plc | 11718 |  | 671098 |
|  Intertek Group plc | 11659 |  | 566203 |
|  J Sainsbury plc | 120106 |  | 313701 |
|  JD Sports Fashion plc | 153395 |  | 232981 |
|  Johnson Matthey plc | 11701 |  | 299715 |
|  Kingfisher plc | 148300 |  | 422299 |
|  Land Securities Group plc (REIT) | 46621 |  | 348876 |
|  Legal & General Group plc | 407374 |  | 1224172 |
|  Lloyds Banking Group plc | 4467366 |  | 2440902 |
|  London Stock Exchange Group plc | 21031 |  | 1805559 |
|  M&G plc | 182005 |  | 411634 |
|  Melrose Industries plc | 290178 |  | 469385 |
|  Mondi plc | 29085 |  | 491493 |
|  National Grid plc | 234975 |  | 2808250 |
|  NatWest Group plc | 346289 |  | 1099871 |
|  Next plc | 8268 |  | 579242 |
|  Ocado Group plc (a) | 33748 |  | 252689 |
|  Pearson plc | 43799 |  | 493976 |
|  Persimmon plc | 22805 |  | 334943 |
|  Phoenix Group Holdings plc | 49751 |  | 364554 |
|  Prudential plc | 178490 |  | 2403353 |
|  Reckitt Benckiser Group plc | 46647 |  | 3228948 |
|  RELX plc | 123461 |  | 3403467 |
|  Rentokil Initial plc | 154878 |  | 947161 |
| **United Kingdom—(Continued)** |  |  |  |
|  Rio Tinto plc | 73860 |  | 5156543 |
|  Rolls-Royce Holdings plc (a) | 548885 |  | 611451 |
|  Sage Group plc (The) | 62616 |  | 559532 |
|  Schroders plc | 46288 |  | 242103 |
|  Segro plc (REIT) | 79379 |  | 730149 |
|  Severn Trent plc | 17094 |  | 545455 |
|  Smith & Nephew plc | 58520 |  | 777901 |
|  Smiths Group plc | 25708 |  | 493155 |
|  Spirax-Sarco Engineering plc | 5277 |  | 674652 |
|  SSE plc | 70245 |  | 1441616 |
|  St. James's Place plc | 38927 |  | 512896 |
|  Standard Chartered plc | 165924 |  | 1239148 |
|  Taylor Wimpey plc | 231686 |  | 284175 |
|  Tesco plc | 480150 |  | 1295300 |
|  Unilever plc | 166797 |  | 8372632 |
|  United Utilities Group plc | 48927 |  | 583770 |
|  Vodafone Group plc | 1713355 |  | 1728085 |
|  Whitbread plc | 13755 |  | 425765 |
|  WPP plc | 66140 |  | 653342 |
|  |  |  | 117931019 |
| **United States—0.6%** | **United States—0.6%** | **United States—0.6%** | **United States—0.6%** |
|  GSK plc | 266804 |  | 4616453 |
|  QIAGEN NV (a) | 15184 |  | 761904 |
|  |  |  | 5378357 |
|  Total Common Stocks <br>(Cost $779,447,307) |  |  | 928880341 |
| **Preferred Stocks—0.5%** | **Preferred Stocks—0.5%** | **Preferred Stocks—0.5%** | **Preferred Stocks—0.5%** |
| **Germany—0.5%** | **Germany—0.5%** | **Germany—0.5%** | **Germany—0.5%** |
|  Bayerische Motoren Werke (BMW) AG | 3581 |  | 304072 |
|  Dr. Ing HC F Porsche AG (a) | 7443 |  | 752881 |
|  Henkel AG & Co. KGaA | 11026 |  | 765269 |
|  Porsche Automobil Holding SE | 9628 |  | 526628 |
|  Sartorius AG | 1542 |  | 607969 |
|  Volkswagen AG | 12059 |  | 1498526 |
|  Total Preferred Stocks <br>(Cost $4,296,578) |  |  | 4455345 |
| **Mutual Funds—0.4%** | **Mutual Funds—0.4%** | **Mutual Funds—0.4%** | **Mutual Funds—0.4%** |
| **United States—0.4%** | **United States—0.4%** | **United States—0.4%** | **United States—0.4%** |
|  iShares MSCI EAFE ETF (b) (e) <br>(Cost $4,298,387) | 65800 |  | 4319112 |
| **Warrants—0.0%** | **Warrants—0.0%** | **Warrants—0.0%** | **Warrants—0.0%** |
| **Switzerland—0.0%** |  |  |  |
|  Cie Financiere Richemont S.A. Expires 11/22/23 (a) <br>(Cost $0) | 78908 |  | 65671 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investments—1.0%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **U.S. Treasury—1.0%** | | |
|  U.S. Treasury Bills<br>3.453%, 01/17/23 (f) | 2300000 | $2296709 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.718%, 01/24/23 (f) | 6850000 | 6834653 |
|  Total Short-Term Investments <br>(Cost $9,129,601) |  | 9131362 |
| **Securities Lending Reinvestments (g)—2.6%** | **Securities Lending Reinvestments (g)—2.6%** | **Securities Lending Reinvestments (g)—2.6%** |
| **Repurchase Agreements—1.1%** |  |  |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $3,125,549; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $3,186,552. | 3124071 | 3124071 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $2,000,960; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $2,047,738. | 2000000 | 2000000 |
|  National Bank of Canada<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $1,000,840; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $1,022,378. | 1000000 | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $2,001,731; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $2,177,657. | 2000000 | 2000000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $985,109; collateralized by various Common Stock with an aggregate market value of $1,095,742. | 984629 | 984629 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $300,258; collateralized by various Common Stock with an aggregate market value of $333,958. | 300000 | 300000 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $1,000,489; collateralized by various Common Stock with an aggregate market value of $1,109,428. | 1000000 | 1000000 |
|  |  | 10408700 |
| **Mutual Funds—1.5%** |  |  |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (h) | 3000000 | 3000000 |
|  HSBC U.S. Government Money Market Fund, Class I <br>4.130% (h) | 4000000 | 4000000 |
|  Morgan Stanley Liquidity Funds Government Portfolio, Institutional Shares 4.110% (h) | 4000000 | 4000000 |
|  SSGA Institutional U.S. Government Money Market Fund,<br>Premier Class 4.120% (h) | 1000000 | 1000000 |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (h) | 2000000 | 2000000 |
|  |  | 14000000 |
|  Total Securities Lending Reinvestments <br>(Cost $24,408,700) |  | 24408700 |
|  Total Investments— 102.3% <br>(Cost $821,580,573) |  | 971260531 |
|  Other assets and liabilities (net)—(2.3)% |  | (21639872) |
| **Net Assets—100.0%** |  | $949620659 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $30,356,934 and the collateral received consisted of cash in the amount of $24,408,700 and non-cash collateral with a value of $7,775,323. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent less than 0.05% of net assets.

(d) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(e) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $4,319,112.

(f) The rate shown represents current yield to maturity.

(g) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(h) The rate shown represents the annualized seven-day yield as of December 31, 2022.

---

| | |
|:---|:---|
| **Ten Largest Industries as of<br>December 31, 2022 (Unaudited)** | **% of<br>Net Assets** |
|  Banks | 9.6 |
|  Pharmaceuticals | 9.4 |
|  Insurance | 5.4 |
|  Oil, Gas & Consumable Fuels | 4.9 |
|  Metals & Mining | 3.7 |
|  Food Products | 3.3 |
|  Chemicals | 3.0 |
|  Automobiles | 3.0 |
|  Textiles, Apparel & Luxury Goods | 2.9 |
|  Machinery | 2.9 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  MSCI EAFE Index Mini Futures | 03/17/23 | 115 | USD | 11209050 | $(177675) |

---

**Glossary of Abbreviations** 

Currencies

------

(USD)— United States Dollar

Other Abbreviations

------

---

| | |
|:---|:---|
| (REIT)— | Real Estate Investment Trust |
| (ADR)— | American Depositary Receipt |
| (ETF)— | Exchange-Traded Fund |

---

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Australia | $3123823 | $69689919 | $— | $72813742 |
| &nbsp;&nbsp;&nbsp;&nbsp; Austria |  | 1809021 |  | 1809021 |
| &nbsp;&nbsp;&nbsp;&nbsp; Belgium |  | 8164481 |  | 8164481 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chile |  | 497957 |  | 497957 |
| &nbsp;&nbsp;&nbsp;&nbsp; China | 158535 | 5350032 |  | 5508567 |
| &nbsp;&nbsp;&nbsp;&nbsp; Denmark |  | 27779455 |  | 27779455 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finland |  | 11996809 |  | 11996809 |
| &nbsp;&nbsp;&nbsp;&nbsp; France |  | 107408745 |  | 107408745 |
| &nbsp;&nbsp;&nbsp;&nbsp; Germany |  | 70944297 |  | 70944297 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hong Kong |  | 25810886 |  | 25810886 |
| &nbsp;&nbsp;&nbsp;&nbsp; Ireland | 524880 | 7016987 |  | 7541867 |
| &nbsp;&nbsp;&nbsp;&nbsp; Israel | 2150166 | 4500277 |  | 6650443 |
| &nbsp;&nbsp;&nbsp;&nbsp; Italy |  | 18327819 |  | 18327819 |
| &nbsp;&nbsp;&nbsp;&nbsp; Japan |  | 203778044 |  | 203778044 |
| &nbsp;&nbsp;&nbsp;&nbsp; Jordan |  | 210568 |  | 210568 |
| &nbsp;&nbsp;&nbsp;&nbsp; Luxembourg |  | 1957420 |  | 1957420 |
| &nbsp;&nbsp;&nbsp;&nbsp; Macau |  | 584445 |  | 584445 |
| &nbsp;&nbsp;&nbsp;&nbsp; Netherlands |  | 52184687 |  | 52184687 |
| &nbsp;&nbsp;&nbsp;&nbsp; New Zealand |  | 2264572 |  | 2264572 |
| &nbsp;&nbsp;&nbsp;&nbsp; Norway |  | 7084332 |  | 7084332 |
| &nbsp;&nbsp;&nbsp;&nbsp; Portugal |  | 1782956 |  | 1782956 |
| &nbsp;&nbsp;&nbsp;&nbsp; Singapore | 235704 | 12687208 |  | 12922912 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; South Africa | $— | $3270737 | $— | $3270737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Spain |  | 23423850 |  | 23423850 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sweden |  | 28870076 |  | 28870076 |
| &nbsp;&nbsp;&nbsp;&nbsp; Switzerland |  | 100743963 |  | 100743963 |
| &nbsp;&nbsp;&nbsp;&nbsp; Taiwan | 1238314 |  |  | 1238314 |
| &nbsp;&nbsp;&nbsp;&nbsp; United Arab Emirates |  |  | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 724692 | 117206327 |  | 117931019 |
| &nbsp;&nbsp;&nbsp;&nbsp; United States |  | 5378357 |  | 5378357 |
|  Total Common Stocks | 8156114 | 920724227 | 0 | 928880341 |
|  Total Preferred Stocks\* |  | 4455345 |  | 4455345 |
|  Total Mutual Funds\* | 4319112 |  |  | 4319112 |
|  Total Warrants\* | 65671 |  |  | 65671 |
|  Total Short-Term Investments\* |  | 9131362 |  | 9131362 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 10408700 |  | 10408700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 14000000 |  |  | 14000000 |
|  Total Securities Lending Reinvestments | 14000000 | 10408700 |  | 24408700 |
|  Total Investments | $26540897 | $944719634 | $0 | $971260531 |
|  Collateral for Securities Loaned (Liability) | $— | $(24408700) | $— | $(24408700) |
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | $(177675) | $— | $— | $(177675) |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

During the year ended December 31, 2022, a transfer out of Level 3 in the amount of $219,021 was due to the resumption of trading activity which resulted in the availability of significant observable inputs.

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $971260531.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (c) | 599391.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 9081046.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 170712.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 3557879.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3692.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 984673251.0 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 95783.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 24408700.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 9626143.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 115575.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 247886.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 101528.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 153221.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 303756.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 35052592.0 |
|  **Net Assets** | $949620659.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $795076691.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 154543968.0 |
|  **Net Assets** | $949620659.0 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $506693349.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 277947507.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 21024907.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 143954896.0 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 39271256.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 22046763.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1638457.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 11510782.0 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $12.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 12.61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 12.83 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 12.51 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $821,580,573.

(b) Includes securities loaned at value of $30,356,934.

(c) Identified cost of cash denominated in foreign currencies was $589,787.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $30251983 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-cash dividends | 1669388 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 157362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 245679 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 32324412 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 3017753 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 52240 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 292838 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 739998 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 33088 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class G | 449414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 52592 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 87214 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 8759 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 194108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 4982659 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (27463) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 4955196 |
|  **Net Investment Income** | 27369216 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
| Net realized gain (loss) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (142339) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (1786116) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (550672) |
|  Net realized gain (loss) | (2479127) |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (195798643) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (312707) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (9746) |
|  Net change in unrealized appreciation (depreciation) | (196121096) |
|  Net realized and unrealized gain (loss) | (198600223) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(171231007) |

---

(a) Net of foreign withholding taxes of $2,943,143.

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $27369216 | $29185831 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (2479127) | 29462368 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (196121096) | 62520472 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (171231007) | 121168671 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (33727982) | (11616833) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (18201803) | (5731298) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (1355293) | (448354) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class G | (9230415) | (2643490) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (62515493) | (20439975) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (32006878) | (70881186) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (265753378) | 29847510 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1215374037 | 1185526527 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $949620659 | $1215374037 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2149168 | $26405637 | 2413487 | $38486490 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 2746578 | 33727982 | 709208 | 11616833 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (6135698) | (83713933) | (4523416) | (71091260) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (1239952) | $(23580314) | (1400721) | $(20987937) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 959199 | $11583423 | 589427 | $9183912 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 1515554 | 18201803 | 357313 | 5731298 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3007156) | (39805568) | (3561688) | (54869626) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (532403) | $(10020342) | (2614948) | $(39954416) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 81108 | $1030304 | 43161 | $680426 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 110908 | 1355293 | 27506 | 448354 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (193160) | (2614362) | (262585) | (4118675) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (1144) | $(228765) | (191918) | $(2989895) |
|  **Class G** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 916723 | $11869979 | 1051649 | $16229225 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 774364 | 9230415 | 166048 | 2643490 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1461455) | (19277851) | (1687111) | (25821653) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 229632 | $1822543 | (469414) | $(6948938) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(32006878) |  | $(70881186) |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $16.17 | $14.86 | $14.32 | $12.16 | $14.55 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.38 | 0.40 | 0.27 | 0.40 | 0.38 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.76) | 1.20 | 0.75 | 2.23 | (2.34) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.38) | 1.60 | 1.02 | 2.63 | (1.96) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.52) | (0.29) | (0.41) | (0.37) | (0.43) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.37) | 0.00 | (0.07) | (0.10) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.89) | (0.29) | (0.48) | (0.47) | (0.43) |
|  **Net Asset Value, End of Period** | $12.90 | $16.17 | $14.86 | $14.32 | $12.16 |
|  **Total Return (%)** (b) | (14.47) | 10.72 | 7.85 | 21.93 | (13.91) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.37 | 0.37 | 0.38 | 0.37 | 0.38 |
|  Net ratio of expenses to average net assets (%) (c) | 0.37 | 0.37 | 0.38 | 0.37 | 0.38 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.84 | 2.53 | 2.06 | 2.97 | 2.72 |
|  Portfolio turnover rate (%) | 9 | 12 | 18 | 9 | 9 |
|  Net assets, end of period (in millions) | $506.7 | $655 | $622.7 | $591.3 | $497.5 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $15.81 | $14.53 | $14.01 | $11.91 | $14.25 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.34 | 0.35 | 0.23 | 0.36 | 0.34 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.69) | 1.18 | 0.74 | 2.17 | (2.29) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.35) | 1.53 | 0.97 | 2.53 | (1.95) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.48) | (0.25) | (0.38) | (0.33) | (0.39) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.37) | 0.00 | (0.07) | (0.10) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.85) | (0.25) | (0.45) | (0.43) | (0.39) |
|  **Net Asset Value, End of Period** | $12.61 | $15.81 | $14.53 | $14.01 | $11.91 |
|  **Total Return (%)** (b) | (14.64) | 10.48 | 7.58 | 21.55 | (14.08) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.62 | 0.62 | 0.63 | 0.62 | 0.63 |
|  Net ratio of expenses to average net assets (%) (c) | 0.62 | 0.62 | 0.63 | 0.62 | 0.63 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.59 | 2.28 | 1.82 | 2.74 | 2.49 |
|  Portfolio turnover rate (%) | 9 | 12 | 18 | 9 | 9 |
|  Net assets, end of period (in millions) | $277.9 | $357 | $366.2 | $361.6 | $336.3 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $16.08 | $14.78 | $14.24 | $12.09 | $14.47 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.36 | 0.38 | 0.25 | 0.38 | 0.36 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.75) | 1.18 | 0.75 | 2.21 | (2.34) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.39) | 1.56 | 1.00 | 2.59 | (1.98) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.49) | (0.26) | (0.39) | (0.34) | (0.40) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.37) | 0.00 | (0.07) | (0.10) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.86) | (0.26) | (0.46) | (0.44) | (0.40) |
|  **Net Asset Value, End of Period** | $12.83 | $16.08 | $14.78 | $14.24 | $12.09 |
|  **Total Return (%)** (b) | (14.60) | 10.54 | 7.71 | 21.77 | (14.06) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.52 | 0.52 | 0.53 | 0.52 | 0.53 |
|  Net ratio of expenses to average net assets (%) (c) | 0.52 | 0.52 | 0.53 | 0.52 | 0.53 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.69 | 2.38 | 1.92 | 2.85 | 2.58 |
|  Portfolio turnover rate (%) | 9 | 12 | 18 | 9 | 9 |
|  Net assets, end of period (in millions) | $21 | $26.4 | $27.1 | $27.2 | $25.2 |
|  | **Class G** | **Class G** | **Class G** | **Class G** | **Class G** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $15.69 | $14.43 | $13.92 | $11.83 | $14.16 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.33 | 0.34 | 0.21 | 0.35 | 0.33 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.67) | 1.16 | 0.74 | 2.17 | (2.27) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.34) | 1.50 | 0.95 | 2.52 | (1.94) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.47) | (0.24) | (0.37) | (0.33) | (0.39) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (0.37) | 0.00 | (0.07) | (0.10) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.84) | (0.24) | (0.44) | (0.43) | (0.39) |
|  **Net Asset Value, End of Period** | $12.51 | $15.69 | $14.43 | $13.92 | $11.83 |
|  **Total Return (%)** (b) | (14.66) | 10.35 | 7.52 | 21.58 | (14.12) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.67 | 0.67 | 0.68 | 0.67 | 0.68 |
|  Net ratio of expenses to average net assets (%) (c) | 0.67 | 0.67 | 0.68 | 0.67 | 0.68 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.55 | 2.23 | 1.69 | 2.67 | 2.42 |
|  Portfolio turnover rate (%) | 9 | 12 | 18 | 9 | 9 |
|  Net assets, end of period (in millions) | $144 | $177 | $169.5 | $116.9 | $100.5 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife MSCI EAFE Index Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

In consideration of recent decisions rendered by European courts, the Portfolio has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union ("EU") countries. These filings are subject to various administrative and judicial proceedings within these countries. During the year ended December 31, 2022, the Portfolio received EU tax reclaim payments in the amount of $189,405 that were not previously accrued for due to uncertainty of collectability. Such amount is included in dividends on the Statement of Operations. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $95,783 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $10,408,700, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(20582141) | $— | $— | $— | $(20582141) |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | (3826559) |  |  |  | (3826559) |
|  **Total Borrowings** | $**(24408700)** | $**—** | $**—** | $**—** | $**(24408700)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(24408700) |

---

**3. Investments in Derivative Instruments** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

---

| | | |
|:---|:---|:---|
|  | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets & <br>Liabilities Location** | **Fair Value** |
|  Equity | Unrealized depreciation on futures contracts (a) | $177675 |

---

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Statement of Operations Location—Net Realized Gain (Loss)** | **Equity** |
|  Futures contracts | $(1786116) |
| **Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)** | **Equity** |
|  Futures contracts | $(312707) |

---

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Futures contracts long | $11286579 |

---

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

*Foreign Investment Risk:* The investments by the Portfolio in foreign securities, whether direct or indirect, involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation, unexpected market closures or other political, social or economic developments, such as the imposition of economic sanctions against one or more countries, organizations, entities and/or individuals, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $91799149 | $0 | $154142834 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.300% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2022 were $3,017,753.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Management, LLC ("MIM") with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIM an investment subadvisory fee for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum** | **Average Daily Net Assets** |
| 0.050% | On the first $500 million |
| 0.040% | Of the next $500 million |
| 0.020% | On amounts over $1 billion |

---

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Fees earned by MIM with respect to the Portfolio for the year ended December 31, 2022 were $443,700.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.005% | Over $500 million and under $1 billion |
| 0.010% | Of the next $1 billion |
| 0.015% | On amounts over $2 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $837056273 |
|  Gross unrealized appreciation | 267649465 |
|  Gross unrealized (depreciation) | (133445207) |
|  Net unrealized appreciation (depreciation) | $134204258 |

---

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2022**  | **2021** | **2022** | **2021** | **2022** | **2021** |
| $38896897 | $20439975 | $23618596 | $— | $62515493 | $20439975 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital<br>Losses** | **Total** |
| $23498035 | $– $| 134237545 | $(3038389) | $154697191 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $2,171,029 and accumulated long-term capital losses of $867,360.

**9. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03 — Fair Value Measurement (Topic 820) — Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MetLife MSCI EAFE Index Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife MSCI EAFE Index Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife MSCI EAFE Index Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MetLife MSCI EAFE Index Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Management, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one- and five-year periods ended June 30, 2022 and underperformed the median of its Performance Universe and the average of its Morningstar Category for the three-year period ended June 30, 2022. The Board took into account that the Portfolio underperformed its benchmark, the MSCI EAFE Index, for the one-, three-, and five-year periods ended October 31, 2022, and the Board noted management's explanation of the tracking error between the Portfolio and the Index. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**MetLife MSCI EAFE Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were above the Expense Group median, Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-33** 

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**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Managed By MetLife Investment Management, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, E and G shares of the MetLife Russell 2000 Index Portfolio returned -20.23%, -20.44%, -20.33%, and -20.46%, respectively. The Portfolio's benchmark, the Russell 2000 Index¹, returned -20.44%.

**MARKET ENVIRONMENT / CONDITIONS** 

Equity markets declined in 2022 as the U.S. Federal Reserve (the "Fed") aggressively raised interest rates to address higher inflation. Tight labor markets and ongoing supply and demand imbalances drove inflation to a new 40-year high. In addition, investor concerns about rising recession risks, lingering pandemic effects, and the ongoing Russian invasion of Ukraine were negatives for the market. Factors that supported the equity markets included signs that inflation data was decelerating, and the Fed might begin pausing interest rate increases. In addition, equity investors were hopeful that the end of Chinese lockdowns might eventually boost the global economy.

During the year, the Federal Open Market Committee (the "FOMC") met eight times. In December, the FOMC decided to raise the Federal Funds Rate target range from 3.75% - 4.00% to 4.25% - 4.50%. The FOMC stated that inflation remained elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures. The FOMC seeks to achieve maximum employment and inflation at the rate of 2 percent over the long run.

Ten of the eleven sectors comprising the Russell 2000 Index experienced negative returns for the year. Energy (4.6% beginning weight in the benchmark), up 43.0%, was the best performing sector and had the largest positive impact on the benchmark return. Technology (13.0% beginning weight), down 36.1%; Consumer Discretionary (14.5% beginning weight), down 30.7%; and Health Care (17.5% beginning weight), down 29.0%, were the worst-performing sectors.

The stocks with the largest positive impact on the benchmark return for the year were Helmerich & Payne, up 115.3%; Antero Resources, up 84.4%; and Ovintiv, up 36.0%. The stocks with the largest negative impact were Intellia Therapeutics, down 70.5%; Synaptics, down 67.1%; and AMC Entertainment, down 54.2%.

**PORTFOLIO REVIEW / CURRENT POSITIONING** 

The Portfolio is managed utilizing a stratified sampling strategy versus the Russell 2000 Index. This strategy seeks to replicate the performance of the Index by owning a subset of Index constituents and neutralizing exposures across sectors. The Portfolio is periodically rebalanced for compositional changes in the Russell 2000 Index. Factors that impact tracking error include sampling, transaction costs, cash drag, securities lending, net asset value (NAV) rounding, and contributions and withdrawals.

**Stacey Lituchy** 

**Norman Hu** 

**Mirsad Usejnoski** 

Portfolio Managers

*MetLife Investment Management, LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The Russell 2000 Index is an unmanaged measure of performance of the 2,000 smallest companies in the Russell 3000 Index.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 INDEX**![LOGO](g400324g48v25.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**MetLife Russell 2000 Index Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -20.23 | 4.09 | 9.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -20.44 | 3.84 | 8.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -20.33 | 3.94 | 8.84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class G** | -20.46 | 3.79 | 8.68 |
| &nbsp;&nbsp;&nbsp;**Russell 2000 Index** | -20.44 | 4.13 | 9.01 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **iShares Russell 2000 Index Fund** | **2.2** |
| **Halozyme Therapeutics, Inc.** | **0.3** |
| **Shockwave Medical, Inc.** | **0.3** |
| **Inspire Medical Systems, Inc.** | **0.3** |
| **EMCOR Group, Inc.** | **0.3** |
| **Crocs, Inc.** | **0.3** |
| **Matador Resources Co.** | **0.3** |
| **Iridium Communications, Inc.** | **0.3** |
| **Murphy Oil Corp.** | **0.3** |
| **Agree Realty Corp.** | **0.3** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Financials** | **18.9** |
| **Health Care** | **16.3** |
| **Industrials** | **15.1** |
| **Information Technology** | **12.3** |
| **Consumer Discretionary** | **10.0** |
| **Energy** | **6.6** |
| **Real Estate** | **6.2** |
| **Materials** | **4.1** |
| **Consumer Staples** | **3.5** |
| **Utilities** | **3.4** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MetLife Russell 2000 Index Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.30% | $1000.00 | $1039.80 | $1.54 |
|  | Hypothetical\* | 0.30% | $1000.00 | $1023.69 | $1.53 |
|  Class B (a) | Actual | 0.55% | $1000.00 | $1038.60 | $2.83 |
|  | Hypothetical\* | 0.55% | $1000.00 | $1022.43 | $2.80 |
|  Class E (a) | Actual | 0.45% | $1000.00 | $1038.80 | $2.31 |
|  | Hypothetical\* | 0.45% | $1000.00 | $1022.94 | $2.29 |
|  Class G (a) | Actual | 0.60% | $1000.00 | $1038.20 | $3.08 |
|  | Hypothetical\* | 0.60% | $1000.00 | $1022.18 | $3.06 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—96.6% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.0%** | | |
|  AAR Corp. (a) | 11635 | $522412 |
|  Aerojet Rocketdyne Holdings, Inc. (a) | 27265 | 1524932 |
|  AeroVironment, Inc. (a) | 8452 | 723998 |
|  AerSale Corp. (a) (b) | 6969 | 113037 |
|  Archer Aviation, Inc. - Class A (a) (b) | 46613 | 87166 |
|  Astronics Corp. (a) | 9068 | 93400 |
|  Cadre Holdings, Inc. (b) | 6188 | 124626 |
|  Ducommun, Inc. (a) | 3735 | 186601 |
|  Kaman Corp. | 8733 | 194746 |
|  Kratos Defense & Security Solutions, Inc. (a) (b) | 42530 | 438910 |
|  Maxar Technologies, Inc. | 25404 | 1314403 |
|  Moog, Inc. - Class A | 9540 | 837230 |
|  National Presto Industries, Inc. (b) | 1752 | 119942 |
|  Park Aerospace Corp. (b) | 7125 | 95546 |
|  Parsons Corp. (a) (b) | 11334 | 524198 |
|  Rocket Lab USA, Inc. (a) (b) | 74509 | 280899 |
|  Triumph Group, Inc. (a) | 22281 | 234396 |
|  V2X, Inc. (a) | 3920 | 161857 |
|  Virgin Galactic Holdings, Inc. (a) (b) | 81717 | 284375 |
|  |  | 7862674 |
| **Air Freight & Logistics—0.4%** |  |  |
|  Air Transport Services Group, Inc. (a) (b) | 20568 | 534357 |
|  Atlas Air Worldwide Holdings, Inc. (a) | 9474 | 954979 |
|  Forward Air Corp. | 8967 | 940548 |
|  Hub Group, Inc. - Class A (a) | 10763 | 855551 |
|  Radiant Logistics, Inc. (a) | 5646 | 28738 |
|  |  | 3314173 |
| **Airlines—0.3%** |  |  |
|  Allegiant Travel Co. (a) | 5412 | 367962 |
|  Blade Air Mobility, Inc. (a) (b) | 20915 | 74876 |
|  Frontier Group Holdings, Inc. (a) (b) | 14756 | 151544 |
|  Hawaiian Holdings, Inc. (a) (b) | 18138 | 186096 |
|  Joby Aviation, Inc. (a) (b) | 86504 | 289788 |
|  SkyWest, Inc. (a) (b) | 16673 | 275271 |
|  Spirit Airlines, Inc. (a) | 36644 | 713825 |
|  Sun Country Airlines Holdings, Inc. (a) (b) | 12318 | 195364 |
|  Wheels Up Experience, Inc. (a) | 23599 | 24307 |
|  |  | 2279033 |
| **Auto Components—1.3%** |  |  |
|  Adient plc (a) | 32641 | 1132316 |
|  American Axle & Manufacturing Holdings, Inc. (a) (b) | 39195 | 306505 |
|  Dana, Inc. | 43537 | 658715 |
|  Dorman Products, Inc. (a) | 9015 | 729043 |
|  Fox Factory Holding Corp. (a) | 14199 | 1295375 |
|  Gentherm, Inc. (a) | 11505 | 751161 |
|  Goodyear Tire & Rubber Co. (The) (a) (b) | 95413 | 968442 |
|  Holley, Inc. (a) | 1290 | 2735 |
|  LCI Industries | 8570 | 792296 |
|  Luminar Technologies, Inc. (a) (b) | 86015 | 425774 |
|  Modine Manufacturing Co. (a) | 17537 | 348285 |
|  Motorcar Parts of America, Inc. (a) (b) | 6814 | 80814 |
|  Patrick Industries, Inc. | 7300 | 442380 |
| **Auto Components—(Continued)** |  |  |
|  Solid Power, Inc. (a) (b) | 47374 | 120330 |
|  Standard Motor Products, Inc. | 6921 | 240851 |
|  Stoneridge, Inc. (a) | 9252 | 199473 |
|  Visteon Corp. (a) | 9437 | 1234643 |
|  XPEL, Inc. (a) (b) | 7296 | 438198 |
|  |  | 10167336 |
| **Automobiles—0.1%** |  |  |
|  Canoo, Inc. (a) (b) | 66391 | 81661 |
|  Fisker, Inc. (a) (b) | 58292 | 423783 |
|  Lordstown Motors Corp. - Class A (a) (b) | 59951 | 68344 |
|  Winnebago Industries, Inc. (b) | 10071 | 530742 |
|  Workhorse Group, Inc. (a) (b) | 30379 | 46176 |
|  |  | 1150706 |
| **Banks—9.7%** |  |  |
|  1st Source Corp. | 5221 | 277183 |
|  ACNB Corp. (b) | 2906 | 115688 |
|  Amalgamated Financial Corp. | 5989 | 137987 |
|  Amerant Bancorp, Inc. (b) | 9340 | 250686 |
|  American National Bankshares, Inc. | 3251 | 120059 |
|  Ameris Bancorp (b) | 22232 | 1048016 |
|  Arrow Financial Corp. | 4906 | 166313 |
|  Associated Banc-Corp. | 50625 | 1168931 |
|  Atlantic Union Bankshares Corp. | 25793 | 906366 |
|  Banc of California, Inc. | 18927 | 301507 |
|  BancFirst Corp. (b) | 6618 | 583575 |
|  Bancorp, Inc. (The) (a) | 19267 | 546797 |
|  Bank First Corp. (b) | 2614 | 242631 |
|  Bank of Marin Bancorp (b) | 5192 | 170713 |
|  Bank of NT Butterfield & Son, Ltd. (The) | 17296 | 515594 |
|  BankUnited, Inc. (b) | 26380 | 896129 |
|  Bankwell Financial Group, Inc. (b) | 1932 | 56859 |
|  Banner Corp. (b) | 11395 | 720164 |
|  Bar Harbor Bankshares | 5292 | 169556 |
|  BayCom Corp. | 4420 | 83892 |
|  BCB Bancorp, Inc. (b) | 4956 | 89158 |
|  Berkshire Hills Bancorp, Inc. | 14603 | 436630 |
|  Blue Ridge Bankshares, Inc. | 7472 | 93325 |
|  Brookline Bancorp, Inc. (b) | 26855 | 379998 |
|  Business First Bancshares, Inc. (b) | 7980 | 176677 |
|  Byline Bancorp, Inc. | 8821 | 202618 |
|  Cadence Bank | 61141 | 1507737 |
|  Cambridge Bancorp (b) | 2176 | 180739 |
|  Camden National Corp. (b) | 4522 | 188522 |
|  Capital Bancorp, Inc. (b) | 3124 | 73539 |
|  Capital City Bank Group, Inc. | 4547 | 147777 |
|  Capstar Financial Holdings, Inc. | 7899 | 139496 |
|  Carter Bankshares, Inc. (a) (b) | 6765 | 112231 |
|  Cathay General Bancorp | 24786 | 1011021 |
|  Central Pacific Financial Corp. | 8161 | 165505 |
|  Citizens & Northern Corp. (b) | 6038 | 138029 |
|  City Holding Co. (b) | 4787 | 445622 |
|  Civista Bancshares, Inc. | 5230 | 115112 |
|  CNB Financial Corp. | 6782 | 161344 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Banks—(Continued)** | | |
|  Coastal Financial Corp. (a) | 3437 | $163326 |
|  Colony Bankcorp, Inc. | 5639 | 71559 |
|  Columbia Banking System, Inc. | 27046 | 814896 |
|  Community Bank System, Inc. | 17926 | 1128442 |
|  Community Trust Bancorp, Inc. | 5081 | 233370 |
|  ConnectOne Bancorp, Inc. | 12128 | 293619 |
|  CrossFirst Bankshares, Inc. (a) (b) | 16519 | 205001 |
|  Customers Bancorp, Inc. (a) (b) | 10596 | 300291 |
|  CVB Financial Corp. (b) | 44953 | 1157540 |
|  Dime Community Bancshares, Inc. (b) | 11336 | 360825 |
|  Eagle Bancorp, Inc. (b) | 11013 | 485343 |
|  Eastern Bankshares, Inc. | 54127 | 933691 |
|  Enterprise Bancorp, Inc. (b) | 3354 | 118396 |
|  Enterprise Financial Services Corp. | 11710 | 573322 |
|  Equity Bancshares, Inc. - Class A (b) | 4632 | 151327 |
|  Esquire Financial Holdings, Inc. (b) | 2392 | 103478 |
|  Farmers & Merchants Bancorp, Inc. (b) | 4130 | 112253 |
|  Farmers National Banc Corp. (b) | 11007 | 155419 |
|  FB Financial Corp. | 12217 | 441522 |
|  Financial Institutions, Inc. | 4838 | 117854 |
|  First Bancorp (b) | 12219 | 523462 |
|  First Bancorp, Inc. (The) | 3758 | 112515 |
|  First BanCorp/Puerto Rico | 59904 | 761979 |
|  First Bancshares, Inc. (The) (b) | 6912 | 221253 |
|  First Bank/Hamilton NJ (b) | 5582 | 76808 |
|  First Busey Corp. | 18478 | 456776 |
|  First Business Financial Services, Inc. | 2763 | 100988 |
|  First Commonwealth Financial Corp. (b) | 29579 | 413219 |
|  First Community Bankshares, Inc. | 5650 | 191535 |
|  First Financial Bancorp | 31251 | 757212 |
|  First Financial Bankshares, Inc. (b) | 44473 | 1529871 |
|  First Financial Corp. (b) | 3977 | 183260 |
|  First Foundation, Inc. | 17120 | 245330 |
|  First Guaranty Bancshares, Inc. (b) | 2085 | 48893 |
|  First Internet Bancorp | 3385 | 82188 |
|  First Interstate BancSystem, Inc. - Class A | 30131 | 1164563 |
|  First Merchants Corp. | 19730 | 811100 |
|  First Mid Bancshares, Inc. (b) | 6036 | 193635 |
|  First of Long Island Corp. (The) | 7996 | 143928 |
|  First Western Financial, Inc. (a) (b) | 2729 | 76821 |
|  Five Star Bancorp (b) | 5331 | 145216 |
|  Flushing Financial Corp. | 10410 | 201746 |
|  Fulton Financial Corp. | 53477 | 900018 |
|  FVCBankcorp, Inc. (a) (b) | 4131 | 78778 |
|  German American Bancorp, Inc. (b) | 9350 | 348755 |
|  Glacier Bancorp, Inc. (b) | 37735 | 1864864 |
|  Great Southern Bancorp, Inc. | 3405 | 202563 |
|  Guaranty Bancshares, Inc. (b) | 2906 | 100664 |
|  Hancock Whitney Corp. | 28838 | 1395471 |
|  Hanmi Financial Corp. | 9877 | 244456 |
|  HarborOne Bancrop, Inc. (b) | 16612 | 230907 |
|  HBT Financial, Inc. | 3470 | 67908 |
|  Heartland Financial USA, Inc. | 13834 | 644941 |
|  Heritage Commerce Corp. (b) | 20117 | 261521 |
|  Heritage Financial Corp. (b) | 12295 | 376719 |
|  Hilltop Holdings, Inc. (b) | 17172 | 515332 |
|  Home BancShares, Inc. (b) | 63382 | 1444476 |
| **Banks—(Continued)** |  |  |
|  HomeStreet, Inc. | 6963 | 192040 |
|  HomeTrust Bancshares, Inc. | 5432 | 131291 |
|  Hope Bancorp, Inc. (b) | 39512 | 506149 |
|  Horizon Bancorp (b) | 12060 | 181865 |
|  Independent Bank Corp. /MI | 7375 | 176410 |
|  Independent Bank Corp./MA | 15711 | 1326480 |
|  Independent Bank Group, Inc. | 11996 | 720720 |
|  International Bancshares Corp. (b) | 18077 | 827203 |
|  John Marshall Bancorp, Inc. | 4296 | 123639 |
|  Lakeland Bancorp, Inc. | 21117 | 371870 |
|  Lakeland Financial Corp. | 8350 | 609299 |
|  Live Oak Bancshares, Inc. (b) | 11266 | 340233 |
|  Macatawa Bank Corp. (b) | 9068 | 100020 |
|  Mercantile Bank Corp. | 5350 | 179118 |
|  Metrocity Bankshares, Inc. (b) | 5632 | 121820 |
|  Metropolitan Bank Holding Corp. (a) | 3249 | 190619 |
|  Mid Penn Bancorp, Inc. (b) | 5091 | 152577 |
|  Midland States Bancorp, Inc. | 6845 | 182214 |
|  MidWestOne Financial Group, Inc. | 4795 | 152241 |
|  MVB Financial Corp. | 3791 | 83478 |
|  National Bank Holdings Corp. - Class A (b) | 10343 | 435130 |
|  NBT Bancorp, Inc. | 14003 | 608010 |
|  Nicolet Bankshares, Inc. (a) (b) | 4330 | 345491 |
|  Northeast Bank (b) | 2320 | 97672 |
|  Northwest Bancshares, Inc. (b) | 39314 | 549610 |
|  OceanFirst Financial Corp. | 20664 | 439110 |
|  OFG Bancorp | 15488 | 426849 |
|  Old National Bancorp | 99968 | 1797425 |
|  Old Second Bancorp, Inc. | 14378 | 230623 |
|  Origin Bancorp, Inc. | 7487 | 274773 |
|  Orrstown Financial Services, Inc. (b) | 3982 | 92223 |
|  Pacific Premier Bancorp, Inc. (b) | 31429 | 991899 |
|  Park National Corp. (b) | 4856 | 683482 |
|  Parke Bancorp, Inc. | 3496 | 72507 |
|  Pathward Financial, Inc. | 9692 | 417241 |
|  PCB Bancorp | 4027 | 71238 |
|  Peapack Gladstone Financial Corp. | 6072 | 226000 |
|  Peoples Bancorp, Inc. (b) | 9666 | 273064 |
|  Peoples Financial Services Corp. (b) | 2533 | 131311 |
|  Preferred Bank (b) | 4747 | 354221 |
|  Premier Financial Corp. | 11932 | 321806 |
|  Primis Financial Corp. (b) | 5222 | 61881 |
|  Professional Holding Corp. - Class A (a) (b) | 4449 | 123415 |
|  QCR Holdings, Inc. | 5744 | 285132 |
|  RBB Bancorp (b) | 4676 | 97495 |
|  Red River Bancshares, Inc. (b) | 1618 | 82615 |
|  Renasant Corp. | 19074 | 716992 |
|  Republic Bancorp, Inc. - Class A (b) | 3075 | 125829 |
|  Republic First Bancorp, Inc. (a) | 19365 | 41635 |
|  S&T Bancorp, Inc. (b) | 13516 | 461977 |
|  Sandy Spring Bancorp, Inc. (b) | 15275 | 538138 |
|  Seacoast Banking Corp. of Florida (b) | 20365 | 635184 |
|  ServisFirst Bancshares, Inc. (b) | 17254 | 1188973 |
|  Shore Bancshares, Inc. (b) | 6088 | 106114 |
|  Sierra Bancorp | 5841 | 124063 |
|  Silvergate Capital Corp. - Class A (a) (b) | 10551 | 183587 |
|  Simmons First National Corp. - Class A (b) | 41014 | 885082 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Banks—(Continued)** | | |
|  SmartFinancial, Inc. | 5462 | $150205 |
|  South Plains Financial, Inc. | 3888 | 107037 |
|  Southern First Bancshares, Inc. (a) | 2574 | 117760 |
|  Southside Bancshares, Inc. (b) | 10581 | 380810 |
|  SouthState Corp. | 25250 | 1928090 |
|  Stellar Bancorp, Inc. (b) | 15697 | 462434 |
|  Stock Yards Bancorp, Inc. (b) | 9642 | 626537 |
|  Summit Financial Group, Inc. | 4159 | 103517 |
|  Texas Capital Bancshares, Inc. (a) | 16864 | 1017068 |
|  Third Coast Bancshares, Inc. (a) (b) | 4809 | 88630 |
|  Tompkins Financial Corp. | 4590 | 356092 |
|  Towne Bank | 23282 | 718017 |
|  TriCo Bancshares | 10668 | 543961 |
|  Triumph Bancorp, Inc. (a) | 8184 | 399952 |
|  Trustmark Corp. | 20462 | 714328 |
|  UMB Financial Corp. | 15144 | 1264827 |
|  United Bankshares, Inc. (b) | 44009 | 1781924 |
|  United Community Banks, Inc. | 36578 | 1236336 |
|  Unity Bancorp, Inc. (b) | 2408 | 65811 |
|  Univest Financial Corp. | 9428 | 246354 |
|  USCB Financial Holdings, Inc. (a) (b) | 4187 | 51081 |
|  Valley National Bancorp | 144649 | 1635980 |
|  Veritex Holdings, Inc. | 17694 | 496848 |
|  Washington Federal, Inc. | 22314 | 748635 |
|  Washington Trust Bancorp, Inc. (b) | 5542 | 261472 |
|  WesBanco, Inc. (b) | 19306 | 713936 |
|  West Bancorp, Inc. (b) | 5498 | 140474 |
|  Westamerica Bancorp | 8792 | 518816 |
|  |  | 77328886 |
| **Beverages—0.6%** |  |  |
|  Celsius Holdings, Inc. (a) (b) | 18677 | 1943155 |
|  Coca-Cola Consolidated, Inc. | 1600 | 819776 |
|  Duckhorn Portfolio, Inc. (The) (a) (b) | 13689 | 226827 |
|  MGP Ingredients, Inc. (b) | 4809 | 511581 |
|  National Beverage Corp. (a) (b) | 8223 | 382616 |
|  Primo Water Corp. | 54035 | 839704 |
|  Vintage Wine Estates, Inc. (a) (b) | 12734 | 41513 |
|  Vita Coco Co., Inc. (The) (a) (b) | 10537 | 145621 |
|  |  | 4910793 |
| **Biotechnology—7.1%** |  |  |
|  2seventy bio, Inc. (a) | 13397 | 125530 |
|  4D Molecular Therapeutics, Inc. (a) | 11182 | 248352 |
|  Aadi Bioscience, Inc. (a) (b) | 4934 | 63303 |
|  ACADIA Pharmaceuticals, Inc. (a) | 43086 | 685929 |
|  Adicet Bio, Inc. (a) (b) | 10288 | 91975 |
|  ADMA Biologics, Inc. (a) (b) | 52635 | 204224 |
|  Aerovate Therapeutics, Inc. (a) (b) | 3363 | 98536 |
|  Affimed NV (a) | 14747 | 18286 |
|  Agenus, Inc. (a) | 102898 | 246955 |
|  Agios Pharmaceuticals, Inc. (a) (b) | 18399 | 516644 |
|  Akero Therapeutics, Inc. (a) (b) | 11758 | 644338 |
|  Albireo Pharma, Inc. (a) | 6398 | 138261 |
|  Alector, Inc. (a) (b) | 20549 | 189667 |
|  Alkermes plc (a) | 56026 | 1463959 |
|  Allogene Therapeutics, Inc. (a) (b) | 26931 | 169396 |
| **Biotechnology—(Continued)** |  |  |
|  Allovir, Inc. (a) (b) | 10797 | 55389 |
|  Alpine Immune Sciences, Inc. (a) (b) | 7737 | 56867 |
|  ALX Oncology Holdings, Inc. (a) (b) | 7595 | 85596 |
|  Amicus Therapeutics, Inc. (a) | 94876 | 1158436 |
|  AnaptysBio, Inc. (a) (b) | 7034 | 217984 |
|  Anavex Life Sciences Corp. (a) (b) | 23292 | 215684 |
|  Anika Therapeutics, Inc. (a) | 4948 | 146461 |
|  Apellis Pharmaceuticals, Inc. (a) | 32091 | 1659426 |
|  Arbutus Biopharma Corp. (a) (b) | 23875 | 55629 |
|  Arcellx, Inc. (a) (b) | 10885 | 337217 |
|  Arcturus Therapeutics Holdings, Inc. (a) (b) | 7412 | 125708 |
|  Arcus Biosciences, Inc. (a) (b) | 17324 | 358260 |
|  Arcutis Biotherapeutics, Inc. (a) | 14052 | 207970 |
|  Arrowhead Pharmaceuticals, Inc. (a) | 34801 | 1411529 |
|  Atara Biotherapeutics, Inc. (a) | 18536 | 60798 |
|  Aura Biosciences, Inc. (a) (b) | 7130 | 74865 |
|  Aurinia Pharmaceuticals, Inc. (a) | 46041 | 198897 |
|  Avid Bioservices, Inc. (a) (b) | 20292 | 279421 |
|  Avidity Biosciences, Inc. (a) (b) | 18061 | 400774 |
|  Beam Therapeutics, Inc. (a) (b) | 21424 | 837893 |
|  BioCryst Pharmaceuticals, Inc. (a) (b) | 62014 | 711921 |
|  Biohaven, Ltd. (a) (b) | 21767 | 302126 |
|  Bioxcel Therapeutics, Inc. (a) (b) | 6276 | 134808 |
|  Bluebird Bio, Inc. (a) | 28058 | 194161 |
|  Blueprint Medicines Corp. (a) (b) | 20651 | 904720 |
|  Bridgebio Pharma, Inc. (a) (b) | 38327 | 292052 |
|  C4 Therapeutics, Inc. (a) (b) | 19683 | 116130 |
|  CareDx, Inc. (a) | 17647 | 201352 |
|  Caribou Biosciences, Inc. (a) (b) | 19951 | 125292 |
|  Catalyst Pharmaceuticals, Inc. (a) (b) | 32720 | 608592 |
|  Celldex Therapeutics, Inc. (a) | 16056 | 715616 |
|  Century Therapeutics, Inc. (a) (b) | 7830 | 40168 |
|  Cerevel Therapeutics Holdings, Inc. (a) (b) | 19567 | 617143 |
|  Chimerix, Inc. (a) | 28726 | 53430 |
|  Chinook Therapeutics, Inc. (a) (b) | 17120 | 448544 |
|  Cogent Biosciences, Inc. (a) (b) | 21981 | 254100 |
|  Coherus Biosciences, Inc. (a) | 25327 | 200590 |
|  Crinetics Pharmaceuticals, Inc. (a) (b) | 18192 | 332914 |
|  CTI BioPharma Corp. (a) (b) | 31483 | 189213 |
|  Cullinan Oncology, Inc. (a) (b) | 10835 | 114309 |
|  Cytokinetics, Inc. (a) | 27587 | 1264036 |
|  Day One Biopharmaceuticals, Inc. (a) (b) | 10021 | 215652 |
|  Deciphera Pharmaceuticals, Inc. (a) | 15140 | 248145 |
|  Denali Therapeutics, Inc. (a) | 36683 | 1020154 |
|  Design Therapeutics, Inc. (a) (b) | 14198 | 145671 |
|  Dynavax Technologies Corp. (a) (b) | 39892 | 424451 |
|  Dyne Therapeutics, Inc. (a) | 12586 | 145872 |
|  Eagle Pharmaceuticals, Inc. (a) | 3536 | 103357 |
|  Editas Medicine, Inc. (a) (b) | 23602 | 209350 |
|  Emergent BioSolutions, Inc. (a) | 17598 | 207832 |
|  Enanta Pharmaceuticals, Inc. (a) | 6820 | 317266 |
|  EQRx, Inc. (a) | 53042 | 130483 |
|  Erasca, Inc. (a) (b) | 23988 | 103388 |
|  Fate Therapeutics, Inc. (a) (b) | 28366 | 286213 |
|  FibroGen, Inc. (a) | 30460 | 487969 |
|  Foghorn Therapeutics, Inc. (a) (b) | 8683 | 55398 |
|  Generation Bio Co. (a) | 17596 | 69152 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Biotechnology—(Continued)** | | |
|  Geron Corp. (a) (b) | 107894 | $261103 |
|  Gossamer Bio, Inc. (a) (b) | 4194 | 9101 |
|  Halozyme Therapeutics, Inc. (a) | 44873 | 2553274 |
|  Heron Therapeutics, Inc. (a) (b) | 32773 | 81933 |
|  HilleVax, Inc. (a) (b) | 5194 | 86896 |
|  Humacyte, Inc. (a) | 22468 | 47407 |
|  Icosavax, Inc. (a) (b) | 8168 | 64854 |
|  Ideaya Biosciences, Inc. (a) (b) | 14961 | 271841 |
|  IGM Biosciences, Inc. (a) (b) | 3684 | 62665 |
|  Imago Biosciences, Inc. (a) (b) | 9057 | 325599 |
|  Immunitybio, Inc. (a) (b) | 28710 | 145560 |
|  ImmunoGen, Inc. (a) | 69797 | 346193 |
|  Immunovant, Inc. (a) (b) | 13987 | 248269 |
|  Inhibrx, Inc. (a) (b) | 11523 | 283927 |
|  Inovio Pharmaceuticals, Inc. (a) | 54791 | 85474 |
|  Insmed, Inc. (a) (b) | 45568 | 910449 |
|  Intellia Therapeutics, Inc. (a) | 28145 | 981979 |
|  Intercept Pharmaceuticals, Inc. (a) (b) | 7486 | 92602 |
|  Iovance Biotherapeutics, Inc. (a) | 50807 | 324657 |
|  Ironwood Pharmaceuticals, Inc. (a) (b) | 44956 | 557005 |
|  iTeos Therapeutics, Inc. (a) | 7999 | 156220 |
|  IVERIC bio, Inc. (a) | 44880 | 960881 |
|  Janux Therapeutics, Inc. (a) | 7592 | 99987 |
|  KalVista Pharmaceuticals, Inc. (a) | 8595 | 58102 |
|  Karuna Therapeutics, Inc. (a) | 10217 | 2007640 |
|  Karyopharm Therapeutics, Inc. (a) | 14739 | 50113 |
|  Keros Therapeutics, Inc. (a) | 6495 | 311890 |
|  Kezar Life Sciences, Inc. (a) (b) | 18151 | 127783 |
|  Kiniksa Pharmaceuticals, Ltd. - Class A (a) (b) | 11087 | 166083 |
|  Kinnate Biopharma, Inc. (a) | 9927 | 60555 |
|  Kodiak Sciences, Inc. (a) | 11661 | 83493 |
|  Krystal Biotech, Inc. (a) (b) | 7224 | 572285 |
|  Kura Oncology, Inc. (a) | 23723 | 294402 |
|  Kymera Therapeutics, Inc. (a) (b) | 12984 | 324081 |
|  Lexicon Pharmaceuticals, Inc. (a) | 7659 | 14629 |
|  Ligand Pharmaceuticals, Inc. (a) (b) | 5564 | 371675 |
|  Lyell Immunopharma, Inc. (a) (b) | 59815 | 207558 |
|  MacroGenics, Inc. (a) | 21437 | 143842 |
|  Madrigal Pharmaceuticals, Inc. (a) (b) | 4214 | 1223113 |
|  MannKind Corp. (a) (b) | 86202 | 454285 |
|  MeiraGTx Holdings plc (a) | 10435 | 68036 |
|  Mersana Therapeutics, Inc. (a) (b) | 29899 | 175208 |
|  MiMedx Group, Inc. (a) (b) | 27195 | 75602 |
|  Mirum Pharmaceuticals, Inc. (a) | 5450 | 106275 |
|  Monte Rosa Therapeutics, Inc. (a) (b) | 11684 | 88915 |
|  Morphic Holding, Inc. (a) | 8694 | 232565 |
|  Myriad Genetics, Inc. (a) | 27414 | 397777 |
|  Nkarta, Inc. (a) (b) | 11066 | 66285 |
|  Nurix Therapeutics, Inc. (a) | 15059 | 165348 |
|  Nuvalent, Inc. - Class A (a) (b) | 7013 | 208847 |
|  Ocugen, Inc. (a) (b) | 46002 | 59803 |
|  Organogenesis Holdings, Inc. (a) (b) | 9239 | 24853 |
|  PepGen, Inc. (a) | 5562 | 74364 |
|  PMV Pharmaceuticals, Inc. (a) | 13301 | 115719 |
|  Point Biopharma Global, Inc. (a) | 29840 | 217534 |
|  Precigen, Inc. (a) (b) | 11392 | 17316 |
|  Prime Medicine, Inc. (a) | 3918 | 72796 |
| **Biotechnology—(Continued)** |  |  |
|  Prometheus Biosciences, Inc. (a) (b) | 11783 | 1296130 |
|  Protagonist Therapeutics, Inc. (a) (b) | 15088 | 164610 |
|  Prothena Corp. plc (a) (b) | 12610 | 759752 |
|  PTC Therapeutics, Inc. (a) | 23732 | 905850 |
|  Rallybio Corp. (a) (b) | 6642 | 43638 |
|  Rapt Therapeutics, Inc. (a) | 8849 | 175210 |
|  Recursion Pharmaceuticals, Inc. - Class A (a) (b) | 46662 | 359764 |
|  REGENXBIO, Inc. (a) | 14967 | 339452 |
|  Relay Therapeutics, Inc. (a) (b) | 28711 | 428942 |
|  Replimune Group, Inc. (a) | 13974 | 380093 |
|  REVOLUTION Medicines, Inc. (a) (b) | 25534 | 608220 |
|  Rigel Pharmaceuticals, Inc. (a) (b) | 31055 | 46583 |
|  Rocket Pharmaceuticals, Inc. (a) (b) | 18131 | 354824 |
|  Sage Therapeutics, Inc. (a) (b) | 17540 | 668976 |
|  Sana Biotechnology, Inc. (a) (b) | 30778 | 121573 |
|  Sangamo Therapeutics, Inc. (a) (b) | 32810 | 103023 |
|  Seres Therapeutics, Inc. (a) (b) | 18278 | 102357 |
|  Sorrento Therapeutics, Inc. (a) (b) | 156051 | 138261 |
|  SpringWorks Therapeutics, Inc. (a) (b) | 12006 | 312276 |
|  Stoke Therapeutics, Inc. (a) (b) | 7332 | 67674 |
|  Sutro Biopharma, Inc. (a) (b) | 18256 | 147508 |
|  Syndax Pharmaceuticals, Inc. (a) (b) | 17951 | 456853 |
|  Tango Therapeutics, Inc. (a) (b) | 16583 | 120227 |
|  TG Therapeutics, Inc. (a) (b) | 44826 | 530292 |
|  Travere Therapeutics, Inc. (a) (b) | 21324 | 448444 |
|  Twist Bioscience Corp. (a) (b) | 19106 | 454914 |
|  Vanda Pharmaceuticals, Inc. (a) | 19612 | 144933 |
|  Vaxart, Inc. (a) (b) | 43215 | 41525 |
|  Vaxcyte, Inc. (a) | 24171 | 1158999 |
|  Vera Therapeutics, Inc. (a) | 5715 | 110585 |
|  Veracyte, Inc. (a) (b) | 24557 | 582738 |
|  Vericel Corp. (a) (b) | 16730 | 440668 |
|  Verve Therapeutics, Inc. (a) (b) | 15945 | 308536 |
|  Vir Biotechnology, Inc. (a) | 24415 | 617944 |
|  Viridian Therapeutics, Inc. (a) (b) | 12764 | 372836 |
|  Xencor, Inc. (a) (b) | 19810 | 515852 |
|  Y-mAbs Therapeutics, Inc. (a) (b) | 5923 | 28904 |
|  Zentalis Pharmaceuticals, Inc. (a) (b) | 16112 | 324496 |
|  |  | 56621839 |
| **Building Products—1.3%** |  |  |
|  AAON, Inc. | 15098 | 1137181 |
|  American Woodmark Corp. (a) | 5524 | 269903 |
|  Apogee Enterprises, Inc. | 7504 | 333628 |
|  Caesarstone, Ltd. (b) | 1496 | 8542 |
|  CSW Industrials, Inc. | 5158 | 597967 |
|  Gibraltar Industries, Inc. (a) | 10324 | 473665 |
|  Griffon Corp. | 15541 | 556212 |
|  Insteel Industries, Inc. | 7079 | 194814 |
|  Janus International Group Inc. (a) | 28699 | 273215 |
|  JELD-WEN Holding, Inc. (a) | 31425 | 303251 |
|  Masonite International Corp. (a) | 7534 | 607316 |
|  PGT Innovations, Inc. (a) | 20640 | 370694 |
|  Quanex Building Products Corp. (b) | 10969 | 259746 |
|  Resideo Technologies, Inc. (a) (b) | 50093 | 824030 |
|  Simpson Manufacturing Co., Inc. | 14424 | 1278832 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Building Products—(Continued)** | | |
|  UFP Industries, Inc. | 20154 | $1597205 |
|  View, Inc. (a) (b) | 17404 | 16793 |
|  Zurn Water Solutions Corp. | 41875 | 885656 |
|  |  | 9988650 |
| **Capital Markets—1.5%** |  |  |
|  Artisan Partners Asset Management, Inc. - Class A (b) | 20274 | 602138 |
|  AssetMark Financial Holdings, Inc. (a) | 7299 | 167877 |
| B. Riley Financial, Inc. | 6563 | 224455 |
|  BGC Partners, Inc. - Class A | 100919 | 380465 |
|  Blucora, Inc. (a) | 15865 | 405033 |
|  Brightsphere Investment Group, Inc. | 11092 | 228273 |
|  Cohen & Steers, Inc. (b) | 8580 | 553925 |
|  Cowen, Inc. - Class A (b) | 9042 | 349202 |
|  Diamond Hill Investment Group, Inc. | 1057 | 195566 |
|  Donnelley Financial Solutions, Inc. (a) (b) | 8485 | 327945 |
|  Federated Hermes, Inc. | 29524 | 1072016 |
|  Focus Financial Partners, Inc. - Class A (a) (b) | 19525 | 727697 |
|  GCM Grosvenor, Inc. - Class A | 15754 | 119888 |
|  Hamilton Lane, Inc. - Class A (b) | 12121 | 774289 |
|  Houlihan Lokey, Inc. | 16860 | 1469518 |
|  Moelis & Co. - Class A (b) | 21688 | 832169 |
|  Open Lending Corp. - Class A (a) | 37857 | 255535 |
|  Oppenheimer Holdings, Inc. - Class A | 3028 | 128175 |
|  Perella Weinberg Partners | 13187 | 129233 |
|  Piper Sandler Cos. (b) | 6026 | 784525 |
|  PJT Partners, Inc. - Class A | 7821 | 576329 |
|  Sculptor Capital Management, Inc. (b) | 8165 | 70709 |
|  Silvercrest Asset Management Group, Inc. - Class A | 3311 | 62147 |
|  StepStone Group, Inc. - Class A (b) | 18138 | 456715 |
|  Stonex Group, Inc. (a) | 5797 | 552454 |
|  Victory Capital Holdings, Inc. - Class A | 6004 | 161087 |
|  Virtus Investment Partners, Inc. | 2293 | 438972 |
|  WisdomTree Investments, Inc. (b) | 40157 | 218856 |
|  |  | 12265193 |
| **Chemicals—2.0%** |  |  |
|  AdvanSix, Inc. | 9088 | 345526 |
|  American Vanguard Corp. | 10391 | 225589 |
|  Amyris, Inc. (a) (b) | 45712 | 69939 |
|  Aspen Aerogels, Inc. (a) (b) | 10708 | 126247 |
|  Avient Corp. | 30374 | 1025426 |
|  Balchem Corp. | 10637 | 1298884 |
|  Cabot Corp. | 19005 | 1270294 |
|  Chase Corp. | 2546 | 219618 |
|  Danimer Scientific, Inc. (a) (b) | 34738 | 62181 |
|  Diversey Holdings, Ltd. (a) (b) | 27745 | 118194 |
|  Ecovyst, Inc. (a) | 21925 | 194256 |
|  FutureFuel Corp. | 8809 | 71617 |
|  Hawkins, Inc. | 6554 | 252984 |
|  HB Fuller Co. | 17873 | 1280064 |
|  Ingevity Corp. (a) | 12653 | 891277 |
|  Innospec, Inc. (b) | 8439 | 868036 |
|  Intrepid Potash, Inc. (a) (b) | 3574 | 103181 |
|  Koppers Holdings, Inc. (b) | 6870 | 193734 |
|  Kronos Worldwide, Inc. (b) | 7992 | 75125 |
| **Chemicals—(Continued)** |  |  |
|  Livent Corp. (a) (b) | 54352 | 1079974 |
|  LSB Industries, Inc. (a) | 24957 | 331928 |
|  Mativ Holdings, Inc. (b) | 18543 | 387549 |
|  Minerals Technologies, Inc. (b) | 11123 | 675389 |
|  Origin Materials, Inc. (a) (b) | 37920 | 174811 |
|  Orion Engineered Carbons S.A. | 20927 | 372710 |
|  Perimeter Solutions S.A. (a) (b) | 41953 | 383450 |
|  PureCycle Technologies, Inc. (a) (b) | 37119 | 250925 |
|  Quaker Chemical Corp. (b) | 4562 | 761398 |
|  Rayonier Advanced Materials, Inc. (a) | 21679 | 208118 |
|  Sensient Technologies Corp. | 14427 | 1052017 |
|  Stepan Co. (b) | 7227 | 769386 |
|  Tredegar Corp. (b) | 7835 | 80074 |
|  Trinseo plc (b) | 12474 | 283285 |
|  Tronox Holding plc - Class A | 40316 | 552732 |
|  |  | 16055918 |
| **Commercial Services & Supplies—1.4%** |  |  |
|  ABM Industries, Inc. | 22236 | 987723 |
|  ACCO Brands Corp. | 25156 | 140622 |
|  ACV Auctions, Inc. - Class A (a) (b) | 39500 | 324295 |
|  Aris Water Solution, Inc. - Class A (b) | 8028 | 115683 |
|  Brady Corp. - Class A | 15290 | 720159 |
|  BrightView Holdings, Inc. (a) | 14394 | 99175 |
|  Brink's Co. (The) | 15273 | 820313 |
|  Casella Waste Systems, Inc. - Class A (a) (b) | 16835 | 1335184 |
|  Cimpress plc (a) (b) | 6224 | 171845 |
|  CoreCivic, Inc. (a) | 37336 | 431604 |
|  Deluxe Corp. (b) | 14396 | 244444 |
|  Ennis, Inc. (b) | 9011 | 199684 |
|  Geo Group, Inc. (The) (a) (b) | 40071 | 438777 |
|  Harsco Corp. (a) (b) | 21428 | 134782 |
|  Healthcare Services Group, Inc. | 27110 | 325320 |
|  Heritage-Crystal Clean, Inc. (a) | 5046 | 163894 |
|  HNI Corp. | 13689 | 389178 |
|  Interface, Inc. (b) | 20528 | 202611 |
|  KAR Auction Services, Inc. (a) (b) | 36524 | 476638 |
|  Kimball International, Inc. - Class B | 6710 | 43615 |
|  Li-Cycle Holdings Corp. (a) (b) | 45980 | 218865 |
|  Matthews International Corp. - Class A (b) | 11034 | 335875 |
|  MillerKnoll, Inc. | 25792 | 541890 |
|  Montrose Environmental Group, Inc. (a) (b) | 9033 | 400975 |
|  Pitney Bowes, Inc. | 50064 | 190243 |
|  SP Plus Corp. (a) | 6829 | 237103 |
|  Steelcase, Inc. - Class A | 24367 | 172275 |
|  UniFirst Corp. | 5018 | 968424 |
|  Viad Corp. (a) | 6618 | 161413 |
|  VSE Corp. | 3553 | 166565 |
|  |  | 11159174 |
| **Communications Equipment—0.9%** |  |  |
|  ADTRAN Holdings, Inc. (b) | 25898 | 486623 |
|  Aviat Networks, Inc. (a) (b) | 3608 | 112534 |
|  Calix, Inc. (a) | 19249 | 1317209 |
|  Cambium Networks Corp. (a) (b) | 4057 | 87915 |
|  Clearfield, Inc. (a) | 3951 | 371947 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Communications Equipment—(Continued)** | | |
|  CommScope Holding Co., Inc. (a) | 69077 | $507716 |
|  Comtech Telecommunications Corp. (b) | 9651 | 117163 |
|  Digi International, Inc. (a) | 11390 | 416305 |
|  DZS, Inc. (a) | 6096 | 77297 |
|  Extreme Networks, Inc. (a) | 43045 | 788154 |
|  Harmonic, Inc. (a) (b) | 31330 | 410423 |
|  Infinera Corp. (a) (b) | 62963 | 424371 |
|  NETGEAR, Inc. (a) (b) | 10251 | 185646 |
|  NetScout Systems, Inc. (a) (b) | 23746 | 771983 |
|  Ribbon Communications, Inc. (a) | 11536 | 32185 |
|  Viavi Solutions, Inc. (a) | 77528 | 814819 |
|  |  | 6922290 |
| **Construction & Engineering—1.6%** |  |  |
|  Ameresco, Inc. - Class A (a) (b) | 10710 | 611969 |
|  API Group Corp. (a) | 71074 | 1336902 |
|  Arcosa, Inc. (b) | 16643 | 904381 |
|  Argan, Inc. | 4530 | 167066 |
|  Comfort Systems USA, Inc. | 11863 | 1365194 |
|  Concrete Pumping Holdings, Inc. (a) | 8982 | 52545 |
|  Construction Partners, Inc. - Class A (a) (b) | 13715 | 366053 |
|  Dycom Industries, Inc. (a) | 9730 | 910728 |
|  EMCOR Group, Inc. | 15914 | 2357023 |
|  Fluor Corp. (a) (b) | 47959 | 1662259 |
|  Granite Construction, Inc. | 14748 | 517212 |
|  Great Lakes Dredge & Dock Corp. (a) | 16893 | 100513 |
|  IES Holdings, Inc. (a) (b) | 3768 | 134028 |
|  MYR Group, Inc. (a) | 5521 | 508318 |
|  Northwest Pipe Co. (a) | 3497 | 117849 |
|  NV5 Global, Inc. (a) (b) | 4636 | 613436 |
|  Primoris Services Corp. | 18341 | 402402 |
|  Sterling Construction Co., Inc. (a) | 10373 | 340234 |
|  Tutor Perini Corp. (a) | 14544 | 109807 |
|  |  | 12577919 |
| **Construction Materials—0.2%** |  |  |
|  Summit Materials, Inc. - Class A (a) (b) | 40082 | 1137920 |
|  United States Lime & Minerals, Inc. (b) | 743 | 104585 |
|  |  | 1242505 |
| **Consumer Finance—0.7%** |  |  |
|  Bread Financial Holdings, Inc. | 16854 | 634722 |
|  Encore Capital Group, Inc. (a) (b) | 7642 | 366357 |
|  Enova International, Inc. (a) | 10760 | 412861 |
|  EZCORP, Inc. - Class A (a) (b) | 12764 | 104027 |
|  FirstCash Holdings, Inc. | 12699 | 1103670 |
|  Green Dot Corp. - Class A (a) | 15976 | 252740 |
|  LendingClub Corp. (a) (b) | 34752 | 305818 |
|  LendingTree, Inc. (a) | 4341 | 92593 |
|  Navient Corp. | 35935 | 591131 |
|  Nelnet, Inc. - Class A (b) | 5036 | 457017 |
|  NerdWallet, Inc. - Class A (a) (b) | 9795 | 94032 |
|  Oportun Financial Corp. (a) | 9663 | 53243 |
|  PRA Group, Inc. (a) (b) | 12838 | 433668 |
|  PROG Holdings, Inc. (a) | 16086 | 271692 |
| **Consumer Finance—(Continued)** |  |  |
|  Regional Management Corp. | 3196 | 89744 |
|  World Acceptance Corp. (a) (b) | 1519 | 100163 |
|  |  | 5363478 |
| **Containers & Packaging—0.3%** |  |  |
|  Greif, Inc. - Class A (b) | 8697 | 583221 |
|  Greif, Inc. - Class B (b) | 1893 | 148089 |
|  Myers Industries, Inc. | 13639 | 303195 |
|  O-I Glass, Inc. (a) | 51220 | 848716 |
|  Pactiv Evergreen, Inc. | 17273 | 196221 |
|  Ranpak Holdings, Corp. (a) (b) | 12914 | 74514 |
|  TriMas Corp. (b) | 14122 | 391744 |
|  |  | 2545700 |
| **Distributors—0.0%** |  |  |
|  Funko, Inc. - Class A (a) (b) | 9888 | 107878 |
|  Weyco Group, Inc. | 2058 | 43547 |
|  |  | 151425 |
| **Diversified Consumer Services—1.0%** |  |  |
|  2U, Inc. (a) (b) | 25600 | 160512 |
|  Adtalem Global Education, Inc. (a) (b) | 14779 | 524654 |
|  American Public Education, Inc. (a) | 6436 | 79098 |
|  Carriage Services, Inc. | 4082 | 112418 |
|  Chegg, Inc. (a) | 41897 | 1058737 |
|  Coursera, Inc. (a) (b) | 38580 | 456401 |
|  Duolingo, Inc. (a) (b) | 8017 | 570249 |
|  European Wax Center, Inc. - Class A (b) | 7677 | 95579 |
|  Frontdoor, Inc. (a) (b) | 27922 | 580778 |
|  Graham Holdings Co. - Class B | 1262 | 762513 |
|  Laureate Education, Inc. - Class A | 47317 | 455190 |
|  OneSpaWorld Holdings, Ltd. (a) (b) | 23346 | 217818 |
|  Perdoceo Education Corp. (a) | 23695 | 329361 |
|  PowerSchool Holdings, Inc. - Class A (a) (b) | 15984 | 368911 |
|  Rover Group, Inc. (a) (b) | 34168 | 125397 |
|  Strategic Education, Inc. (b) | 7768 | 608390 |
|  Stride, Inc. (a) (b) | 13534 | 423344 |
|  Udemy, Inc. (a) | 25246 | 266345 |
|  Universal Technical Institute, Inc. (a) (b) | 11334 | 76164 |
|  Vivint Smart Home, Inc. (a) (b) | 32315 | 384548 |
|  WW International, Inc. (a) (b) | 8339 | 32189 |
|  |  | 7688596 |
| **Diversified Financial Services—0.3%** |  |  |
|  A-Mark Precious Metals, Inc. (b) | 6654 | 231093 |
|  Alerus Financial Corp. (b) | 4862 | 113528 |
|  Banco Latinoamericano de Comercio Exterior S.A. - Class E | 9691 | 156994 |
|  Cannae Holdings, Inc. (a) | 23433 | 483891 |
|  Compass Diversified Holdings | 20864 | 380351 |
|  Jackson Financial, Inc. - Class A (b) | 25402 | 883736 |
|  |  | 2249593 |
| **Diversified Telecommunication Services—0.6%** |  |  |
|  Anterix, Inc. (a) | 6356 | 204472 |
|  ATN International, Inc. (b) | 3399 | 154009 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Diversified Telecommunication Services—(Continued)** | | |
|  Bandwidth, Inc. - Class A (a) | 8108 | $186079 |
|  Charge Enterprises, Inc., (a) (b) | 47945 | 59452 |
|  Cogent Communications Holdings, Inc. | 14461 | 825434 |
|  Consolidated Communications Holdings, Inc. (a) (b) | 15599 | 55844 |
|  EchoStar Corp. - Class A (a) (b) | 11847 | 197608 |
|  Globalstar, Inc. (a) (b) | 203909 | 271199 |
|  IDT Corp. - Class B (a) | 5006 | 141019 |
|  Iridium Communications, Inc. (a) | 42127 | 2165328 |
|  Liberty Latin America, Ltd. - Class A (a) | 8995 | 67732 |
|  Liberty Latin America, Ltd. - Class C (a) | 47385 | 360126 |
|  Ooma, Inc. (a) | 8609 | 117255 |
|  Radius Global Infrastructure, Inc. - Class A (a) (b) | 26242 | 310180 |
|  |  | 5115737 |
| **Electric Utilities—0.7%** |  |  |
|  ALLETE, Inc. | 19317 | 1246140 |
|  MGE Energy, Inc. | 12519 | 881338 |
|  Otter Tail Corp. | 14134 | 829807 |
|  PNM Resources, Inc. | 28574 | 1394125 |
|  Portland General Electric Co. (b) | 30482 | 1493618 |
|  |  | 5845028 |
| **Electrical Equipment—1.3%** |  |  |
|  Allied Motion Technologies, Inc. (b) | 4130 | 143765 |
|  Array Technologies, Inc. (a) (b) | 51455 | 994625 |
|  Atkore, Inc. (a) | 13955 | 1582776 |
|  AZZ, Inc. | 8063 | 324133 |
|  Babcock & Wilcox Enterprises, Inc. (a) (b) | 12529 | 72292 |
|  Blink Charging Co. (a) (b) | 13174 | 144519 |
|  Bloom Energy Corp. - Class A (a) (b) | 60600 | 1158672 |
|  Encore Wire Corp. (b) | 5966 | 820683 |
|  Energy Vault Holdings, Inc. (a) (b) | 25378 | 79179 |
|  EnerSys | 14034 | 1036270 |
|  Enovix Corp. (a) (b) | 37602 | 467769 |
|  ESS Tech, Inc. (a) (b) | 30151 | 73267 |
|  Fluence Energy, Inc. (a) (b) | 13273 | 227632 |
|  FuelCell Energy, Inc. (a) | 137668 | 382717 |
|  GrafTech International, Ltd. | 59985 | 285529 |
|  NuScale Power Corp. (a) (b) | 11890 | 121991 |
|  Powell Industries, Inc. | 3142 | 110536 |
|  Preformed Line Products Co. (b) | 876 | 72962 |
|  Shoals Technologies Group, Inc. - Class A (a) | 47866 | 1180854 |
|  Stem, Inc. (a) (b) | 49764 | 444890 |
|  Thermon Group Holdings, Inc. (a) | 11598 | 232888 |
|  TPI Composites, Inc. (a) (b) | 11883 | 120494 |
|  Vicor Corp. (a) | 7241 | 389204 |
|  |  | 10467647 |
| **Electronic Equipment, Instruments & Components—2.3%** |  |  |
|  908 Devices, Inc. (a) (b) | 7715 | 58788 |
|  Advanced Energy Industries, Inc. | 12905 | 1106991 |
|  Aeva Technologies, Inc. (a) (b) | 37007 | 50330 |
|  Akoustis Technologies, Inc. (a) (b) | 6378 | 17986 |
|  Arlo Technologies, Inc. (a) | 17319 | 60790 |
|  Badger Meter, Inc. (b) | 9792 | 1067622 |
| **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** |
|  Belden, Inc. | 14345 | 1031405 |
|  Benchmark Electronics, Inc. | 12513 | 333972 |
|  CTS Corp. (b) | 10302 | 406105 |
|  ePlus, Inc. (a) | 8957 | 396616 |
|  Evolv Technologies Holdings, Inc. (a) (b) | 31710 | 82129 |
|  Fabrinet (a) | 12442 | 1595313 |
|  FARO Technologies, Inc. (a) (b) | 6602 | 194165 |
|  Focus Universal, Inc. (a) (b) | 6826 | 43755 |
|  Identiv, Inc. (a) (b) | 7717 | 55871 |
|  Insight Enterprises, Inc. (a) (b) (c) | 10555 | 1058350 |
|  Itron, Inc. (a) (b) | 15613 | 790798 |
|  Kimball Electronics, Inc. (a) | 7836 | 177015 |
|  Knowles Corp. (a) (b) | 30951 | 508215 |
|  Lightwave Logic, Inc. (a) (b) | 39253 | 169180 |
|  Methode Electronics, Inc. (b) | 12060 | 535102 |
|  MicroVision, Inc. (a) (b) | 42277 | 99351 |
|  Mirion Technologies, Inc. (a) (b) | 47819 | 316084 |
|  Napco Security Technologies, Inc. (a) (b) | 9847 | 270596 |
|  nLight, Inc. (a) (b) | 14866 | 150741 |
|  Novanta, Inc. (a) (b) | 11932 | 1621201 |
|  OSI Systems, Inc. (a) | 5288 | 420502 |
|  Ouster, Inc. (a) | 55066 | 47522 |
|  PAR Technology Corp. (a) (b) | 10078 | 262733 |
|  PC Connection, Inc. | 3547 | 166354 |
|  Plexus Corp. (a) (c) | 9231 | 950147 |
|  Rogers Corp. (a) | 6411 | 765089 |
|  Sanmina Corp. (a) | 19251 | 1102890 |
|  ScanSource, Inc. (a) | 8101 | 236711 |
|  SmartRent, Inc. (a) (b) | 25800 | 62694 |
|  TTM Technologies, Inc. (a) | 35927 | 541779 |
|  Velodyne Lidar, Inc. (a) | 78964 | 58331 |
|  Vishay Intertechnology, Inc. | 43569 | 939783 |
|  Vishay Precision Group, Inc. (a) (b) | 4194 | 162098 |
|  |  | 17915104 |
| **Energy Equipment & Services—2.2%** |  |  |
|  Archrock, Inc. (b) | 49321 | 442903 |
|  Borr Drilling, Ltd. (a) | 70507 | 350420 |
|  Bristow Group, Inc. (a) (b) | 8308 | 225396 |
|  Cactus, Inc. - Class A | 19859 | 998113 |
|  ChampionX Corp. | 67467 | 1955868 |
|  Diamond Offshore Drilling, Inc. (a) (b) | 35307 | 367193 |
|  DMC Global, Inc. (a) | 6765 | 131512 |
|  Dril-Quip, Inc. (a) | 11785 | 320198 |
|  Expro Group Holdings NV (a) (b) | 26194 | 474897 |
|  Helix Energy Solutions Group, Inc. (a) | 48941 | 361185 |
|  Helmerich & Payne, Inc. | 35014 | 1735644 |
|  Liberty Oilfield Services, Inc. | 48056 | 769376 |
|  Nabors Industries, Ltd. (a) (b) | 3057 | 473438 |
|  National Energy Services Reunited Corp. (a) (b) | 11331 | 78637 |
|  Newpark Resources, Inc. (a) (b) | 22582 | 93715 |
|  NexTier Oilfield Solutions, Inc. (a) | 59146 | 546509 |
|  Noble Corp. plc (a) | 28608 | 1078808 |
|  Oceaneering International, Inc. (a) (b) | 35840 | 626842 |
|  Oil States International, Inc. (a) | 24658 | 183949 |
|  Patterson-UTI Energy, Inc. | 72095 | 1214080 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Energy Equipment & Services—(Continued)** | | |
|  ProFrac Holding Corp. - Class A (a) (b) | 8200 | $206640 |
|  ProPetro Holding Corp. (a) | 29421 | 305096 |
|  RPC, Inc. (b) | 26045 | 231540 |
|  Select Energy Services, Inc. - Class A (b) | 22065 | 203881 |
|  Solaris Oilfield Infrastructure, Inc. - Class A | 10753 | 106777 |
|  TETRA Technologies, Inc. (a) (b) | 42286 | 146309 |
|  Tidewater, Inc. (a) | 15690 | 578176 |
|  U.S. Silica Holdings, Inc. (a) | 25504 | 318800 |
|  Valaris, Ltd. (a) (b) | 21110 | 1427458 |
|  Weatherford International plc (a) | 23800 | 1211896 |
|  |  | 17165256 |
| **Entertainment—0.3%** |  |  |
|  Cinemark Holdings, Inc. (a) (b) | 37384 | 323745 |
|  IMAX Corp. (a) | 18129 | 265771 |
|  Liberty Media Corp. Liberty Braves - Class A (a) | 3713 | 121304 |
|  Liberty Media Corp.-Liberty Braves - Class C (a) | 12842 | 413898 |
|  Lions Gate Entertainment Corp. - Class A (a) (b) | 20369 | 116307 |
|  Lions Gate Entertainment Corp. - Class B (a) | 33782 | 183436 |
|  Madison Square Garden Entertainment Corp. (a) (b) | 9098 | 409137 |
|  Marcus Corp. (The) (b) | 8228 | 118401 |
|  Playstudios, Inc. (a) (b) | 28794 | 111721 |
|  Reservoir Media, Inc. (a) | 7925 | 47312 |
|  Skillz, Inc. (a) (b) | 61125 | 30960 |
|  |  | 2141992 |
| **Equity Real Estate Investment Trusts—5.6%** |  |  |
|  Acadia Realty Trust (b) | 31446 | 451250 |
|  Agree Realty Corp. (b) | 29500 | 2092435 |
|  Alexander & Baldwin, Inc. | 23869 | 447066 |
|  Alexander's, Inc. (b) | 759 | 167026 |
|  American Assets Trust, Inc. | 17223 | 456409 |
|  Apartment Investment & Management Co. - Class A | 50611 | 360350 |
|  Apple Hospitality REIT, Inc. (b) | 73539 | 1160445 |
|  Armada Hoffler Properties, Inc. | 22515 | 258923 |
|  Ashford Hospitality Trust, Inc. (a) | 4562 | 20392 |
|  Braemar Hotels & Resorts, Inc. (b) | 10301 | 42337 |
|  Brandywine Realty Trust | 52621 | 323619 |
|  Broadstone Net Lease, Inc. (b) | 60343 | 978160 |
|  BRT Apartments Corp. | 3996 | 78481 |
|  CareTrust REIT, Inc. | 33166 | 616224 |
|  CBL & Associates Properties, Inc. (b) | 9399 | 216929 |
|  Centerspace | 5179 | 303852 |
|  Chatham Lodging Trust | 16628 | 204026 |
|  City Office REIT, Inc. | 10797 | 90479 |
|  Community Healthcare Trust, Inc. | 8030 | 287474 |
|  Corporate Office Properties Trust (b) | 37541 | 973814 |
|  CTO Realty Growth, Inc. | 6327 | 115658 |
|  DiamondRock Hospitality Co. | 66934 | 548189 |
|  Diversified Healthcare Trust | 30823 | 19936 |
|  Easterly Government Properties, Inc. (b) | 30700 | 438089 |
|  Elme Communities Trust | 30151 | 536688 |
|  Empire State Realty Trust, Inc. - Class A (b) | 41022 | 276488 |
|  Equity Commonwealth | 35341 | 882465 |
|  Essential Properties Realty Trust, Inc. (b) | 48222 | 1131770 |
|  Farmland Partners, Inc. | 15523 | 193417 |
| **Equity Real Estate Investment Trusts—(Continued)** |  |  |
|  Four Corners Property Trust, Inc. (b) | 28222 | 731796 |
|  Franklin Street Properties Corp. (b) | 21290 | 58122 |
|  Getty Realty Corp. (b) | 14042 | 475322 |
|  Gladstone Commercial Corp. (b) | 13245 | 245033 |
|  Gladstone Land Corp. | 10827 | 198675 |
|  Global Medical REIT, Inc. (b) | 21232 | 201279 |
|  Global Net Lease, Inc. (b) | 34451 | 433049 |
|  Hersha Hospitality Trust | 10786 | 91897 |
|  Independence Realty Trust, Inc. | 75182 | 1267569 |
|  Indus Realty Trust, Inc. (b) | 1581 | 100378 |
|  Industrial Logistics Properties Trust (b) | 13114 | 42883 |
|  Innovative Industrial Properties, Inc. | 9335 | 946102 |
|  InvenTrust Properties Corp. | 23184 | 548765 |
|  iStar, Inc. | 22956 | 175154 |
|  Kite Realty Group Trust | 73131 | 1539408 |
|  LTC Properties, Inc. (b) | 13090 | 465088 |
|  LXP Industrial Trust | 91764 | 919475 |
|  Macerich Co. (The) | 71062 | 800158 |
|  National Health Investors, Inc. | 14087 | 735623 |
|  Necessity Retail REIT, Inc. (The) | 39115 | 231952 |
|  NETSTREIT Corp. (b) | 18614 | 341195 |
|  NexPoint Residential Trust, Inc. | 7849 | 341588 |
|  Office Properties Income Trust | 16817 | 224507 |
|  One Liberty Properties, Inc. (b) | 6483 | 144052 |
|  Orion Office REIT, Inc. (b) | 20172 | 172269 |
|  Outfront Media, Inc. | 49314 | 817626 |
|  Paramount Group, Inc. (b) | 56799 | 337386 |
|  Pebblebrook Hotel Trust (b) | 43364 | 580644 |
|  Phillips Edison & Co., Inc. (b) | 40572 | 1291812 |
|  Physicians Realty Trust (b) | 76855 | 1112092 |
|  Piedmont Office Realty Trust, Inc. - Class A | 41047 | 376401 |
|  Plymouth Industrial REIT, Inc. | 12764 | 244814 |
|  Postal Realty Trust, Inc. - Class A (b) | 5867 | 85248 |
|  PotlatchDeltic Corp. | 26827 | 1180120 |
|  Retail Opportunity Investments Corp. | 41820 | 628555 |
|  RLJ Lodging Trust | 53050 | 561799 |
|  RPT Realty | 28918 | 290337 |
|  Ryman Hospitality Properties, Inc. | 18168 | 1485779 |
|  Sabra Health Care REIT, Inc. | 76355 | 949093 |
|  Safehold, Inc. (b) | 8911 | 255033 |
|  Saul Centers, Inc. | 3884 | 158001 |
|  Service Properties Trust (b) | 51768 | 377389 |
|  SITE Centers Corp. (b) | 65501 | 894744 |
|  STAG Industrial, Inc. | 60806 | 1964642 |
|  Summit Hotel Properties, Inc. | 35542 | 256613 |
|  Sunstone Hotel Investors, Inc. (b) | 70253 | 678644 |
|  Tanger Factory Outlet Centers, Inc. | 34992 | 627756 |
|  Terreno Realty Corp. | 25258 | 1436422 |
|  UMH Properties, Inc. (b) | 16743 | 269562 |
|  Uniti Group, Inc. | 73187 | 404724 |
|  Universal Health Realty Income Trust (b) | 4263 | 203473 |
|  Urban Edge Properties (b) | 39794 | 560697 |
|  Urstadt Biddle Properties, Inc. - Class A (b) | 11225 | 212714 |
|  Veris Residential, Inc. (a) | 30231 | 481580 |
|  Whitestone REIT (b) | 15859 | 152881 |
|  Xenia Hotels & Resorts, Inc. | 37927 | 499878 |
|  |  | 44480189 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Food & Staples Retailing—0.6%** | | |
|  Andersons, Inc. (The) | 11198 | $391818 |
|  Chefs' Warehouse, Inc. (The) (a) | 11522 | 383452 |
|  HF Foods Group, Inc. (a) (b) | 12514 | 50807 |
|  Ingles Markets, Inc. - Class A | 4911 | 473715 |
|  PriceSmart, Inc. | 8316 | 505446 |
|  Rite Aid Corp. (a) | 8720 | 29125 |
|  SpartanNash Co. | 12524 | 378726 |
|  Sprouts Farmers Market, Inc. (a) | 35735 | 1156742 |
|  United Natural Foods, Inc. (a) (b) | 20059 | 776484 |
|  Village Super Market, Inc. - Class A | 2910 | 67774 |
|  Weis Markets, Inc. | 5704 | 469382 |
|  |  | 4683471 |
| **Food Products—1.2%** |  |  |
|  Alico, Inc. (b) | 2158 | 51511 |
|  B&G Foods, Inc. (b) | 23543 | 262504 |
|  Benson Hill, Inc. (a) | 45005 | 114763 |
|  Beyond Meat, Inc. (a) (b) | 20671 | 254460 |
|  BRC, Inc. (a) (b) | 10280 | 62811 |
|  Cal-Maine Foods, Inc. (b) | 12683 | 690589 |
|  Calavo Growers, Inc. (b) | 5820 | 171108 |
|  Fresh Del Monte Produce, Inc. | 10641 | 278688 |
|  Hain Celestial Group, Inc. (The) (a) (b) | 30259 | 489591 |
|  Hostess Brands, Inc. (a) | 45027 | 1010406 |
|  J & J Snack Foods Corp. | 5253 | 786427 |
|  John B Sanfilippo & Son, Inc. (b) | 2849 | 231681 |
|  Lancaster Colony Corp. | 6596 | 1301391 |
|  Landec Corp. (a) | 9681 | 62733 |
|  Local Bounti Corp. (a) (b) | 25259 | 35110 |
|  Mission Produce, Inc. (a) | 15099 | 175450 |
|  Seneca Foods Corp. - Class A (a) (b) | 1733 | 105626 |
|  Simply Good Foods Co. (The) (a) | 29956 | 1139227 |
|  Sovos Brands, Inc. (a) (b) | 14185 | 203838 |
|  SunOpta, Inc. (a) | 34321 | 289669 |
|  Tootsie Roll Industries, Inc. (b) | 5291 | 225238 |
|  TreeHouse Foods, Inc. (a) (b) | 17110 | 844892 |
|  UTZ Brands, Inc. (b) | 22721 | 360355 |
|  Vital Farms, Inc. (a) (b) | 9557 | 142590 |
|  Whole Earth Brands, Inc. (a) | 15579 | 63407 |
|  |  | 9354065 |
| **Gas Utilities—1.2%** |  |  |
|  Brookfield Infrastructure Corp. - Class A (b) | 32716 | 1272652 |
|  Chesapeake Utilities Corp. | 5971 | 705653 |
|  New Jersey Resources Corp. | 32290 | 1602230 |
|  Northwest Natural Holding Co. | 11482 | 546428 |
|  ONE Gas, Inc. (b) | 17967 | 1360461 |
|  South Jersey Industries, Inc. | 41388 | 1470516 |
|  Southwest Gas Holdings, Inc. | 22576 | 1397003 |
|  Spire, Inc. (b) | 17502 | 1205188 |
|  |  | 9560131 |
| **Health Care Equipment & Supplies—3.7%** |  |  |
|  Alphatec Holdings, Inc. (a) | 25663 | 316938 |
|  AngioDynamics, Inc. (a) | 12161 | 167457 |
|  Artivion, Inc. (a) (b) | 12730 | 154288 |
| **Health Care Equipment & Supplies—(Continued)** |  |  |
|  AtriCure, Inc. (a) | 15592 | 691973 |
|  Atrion Corp. | 495 | 276928 |
|  Avanos Medical, Inc. (a) | 15903 | 430335 |
|  AxoGen, Inc. (a) | 14840 | 148103 |
|  Axonics, Inc. (a) | 16781 | 1049316 |
|  BioLife Solutions, Inc. (a) (b) | 11463 | 208627 |
|  Butterfly Network, Inc. (a) (b) | 47336 | 116447 |
|  Cardiovascular Systems, Inc. (a) | 13837 | 188460 |
|  Cerus Corp. (a) (b) | 50269 | 183482 |
|  CONMED Corp. (b) | 9867 | 874611 |
|  Cue Health, Inc. (a) (b) | 38907 | 80537 |
|  Cutera, Inc. (a) (b) | 5219 | 230784 |
|  Embecta Corp. (b) | 19687 | 497884 |
|  Figs, Inc. - Class A (a) (b) | 44317 | 298253 |
|  Glaukos Corp. (a) | 15295 | 668086 |
|  Haemonetics Corp. (a) | 17072 | 1342713 |
|  Heska Corp. (a) | 3474 | 215944 |
|  Inari Medical, Inc. (a) | 16262 | 1033613 |
|  Inogen, Inc. (a) | 7987 | 157424 |
|  Inspire Medical Systems, Inc. (a) | 9509 | 2395127 |
|  Integer Holdings Corp. (a) | 10999 | 752991 |
|  iRadimed Corp. (b) | 2491 | 70470 |
|  iRhythm Technologies, Inc. (a) | 10474 | 981100 |
|  Lantheus Holdings, Inc. (a) | 23157 | 1180081 |
|  LeMaitre Vascular, Inc. (b) | 6277 | 288868 |
|  LivaNova plc (a) | 18448 | 1024602 |
|  Meridian Bioscience, Inc. (a) | 14711 | 488552 |
|  Merit Medical Systems, Inc. (a) | 19225 | 1357669 |
|  Mesa Laboratories, Inc. | 1730 | 287543 |
|  Nano-X Imaging, Ltd. (a) (b) | 15150 | 111807 |
|  Neogen Corp. (a) | 73130 | 1113770 |
|  Nevro Corp. (a) (b) | 12102 | 479239 |
|  NuVasive, Inc. (a) (c) | 18016 | 742980 |
|  Omnicell, Inc. (a) (b) | 14912 | 751863 |
|  OraSure Technologies, Inc. (a) | 28635 | 138021 |
|  Orthofix Medical, Inc. (a) | 7567 | 155350 |
|  OrthoPediatrics Corp. (a) (b) | 5617 | 223163 |
|  Outset Medical, Inc. (a) (b) | 16994 | 438785 |
|  Paragon 28, Inc. (a) (b) | 16207 | 309716 |
|  PROCEPT BioRobotics Corp. (a) | 8922 | 370620 |
|  Pulmonx Corp. (a) | 12235 | 103141 |
|  RxSight, Inc. (a) (b) | 7831 | 99219 |
|  SeaSpine Holdings Corp. (a) | 10839 | 90506 |
|  Senseonics Holdings, Inc. (a) (b) | 121407 | 125049 |
|  Shockwave Medical, Inc. (a) | 11995 | 2466292 |
|  SI-BONE, Inc. (a) (b) | 12210 | 166056 |
|  Sight Sciences, Inc. (a) (b) | 7858 | 95946 |
|  Silk Road Medical, Inc. (a) | 12651 | 668605 |
|  STAAR Surgical Co. (a) | 16470 | 799454 |
|  SurModics, Inc. (a) | 4747 | 161968 |
|  Tactile Systems Technology, Inc. (a) | 6668 | 76549 |
|  TransMedics Group, Inc. (a) (b) | 10461 | 645653 |
|  Treace Medical Concepts, Inc. (a) (b) | 12249 | 281604 |
|  UFP Technologies, Inc. (a) | 2153 | 253817 |
|  Utah Medical Products, Inc. | 1293 | 129985 |
|  Varex Imaging Corp. (a) (b) | 12322 | 250137 |
|  Vicarious Surgical, Inc. (a) (b) | 3842 | 7761 |
|  ViewRay, Inc. (a) (b) | 51713 | 231674 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Health Care Equipment & Supplies—(Continued)** | | |
|  Zimvie, Inc. (a) | 7676 | $71694 |
|  Zynex, Inc. (b) | 7718 | 107357 |
|  |  | 29826987 |
| **Health Care Providers & Services—2.6%** |  |  |
|  1Life Healthcare, Inc. (a) | 60750 | 1015133 |
|  23andMe Holding Co. - Class A (a) (b) | 93214 | 201342 |
|  Accolade, Inc. (a) (b) | 22370 | 174262 |
|  AdaptHealth Corp. (a) (b) | 24358 | 468161 |
|  Addus HomeCare Corp. (a) | 5248 | 522124 |
|  Agiliti, Inc. (a) (b) | 9835 | 160409 |
|  Alignment Healthcare, Inc. (a) (b) | 33732 | 396688 |
|  AMN Healthcare Services, Inc. (a) | 14749 | 1516492 |
|  Apollo Medical Holdings, Inc. (a) (b) | 13155 | 389256 |
|  Brookdale Senior Living, Inc. (a) (b) | 50266 | 137226 |
|  Cano Health, Inc. (a) (b) | 23077 | 31616 |
|  CareMax, Inc. (a) (b) | 22526 | 82220 |
|  Castle Biosciences, Inc. (a) (b) | 7804 | 183706 |
|  Clover Health Investments Corp. (a) (b) | 95865 | 89107 |
|  Community Health Systems, Inc. (a) (b) | 45180 | 195178 |
|  Corvel Corp. (a) | 3162 | 459533 |
|  Cross Country Healthcare, Inc. (a) | 12489 | 331833 |
|  DocGo, Inc. (a) (b) | 28630 | 202414 |
|  Ensign Group, Inc. (The) | 18227 | 1724456 |
|  Fulgent Genetics, Inc. (a) (b) | 7417 | 220878 |
|  HealthEquity, Inc. (a) | 28395 | 1750268 |
|  Hims & Hers Health, Inc. (a) (b) | 43355 | 277906 |
|  Innovage Holding Corp. (a) | 7444 | 53448 |
|  Invitae Corp. (a) (b) | 61651 | 114671 |
|  Joint Corp. (The) (a) (b) | 5088 | 71130 |
|  LHC Group, Inc. (a) | 10014 | 1619164 |
|  Lifestance Health Group, Inc. (a) (b) | 27070 | 133726 |
|  ModivCare, Inc. (a) | 4229 | 379468 |
|  National HealthCare Corp. (b) | 4199 | 249841 |
|  National Research Corp. | 4600 | 171580 |
|  Opko Health, Inc. (a) (b) | 108824 | 136030 |
|  Option Care Health, Inc. (a) | 53171 | 1599915 |
|  Owens & Minor, Inc. (a) (b) | 26335 | 514323 |
|  Patterson Cos., Inc. | 29387 | 823718 |
|  Pediatrix Medical Group, Inc. (a) (b) | 28941 | 430063 |
|  Pennant Group Inc. (The) (a) | 11360 | 124733 |
|  PetIQ, Inc. (a) | 9493 | 87525 |
|  Privia Health Group, Inc. (a) (b) | 15278 | 346963 |
|  Progyny, Inc. (a) | 25175 | 784201 |
|  R1 RCM, Inc. (a) | 51459 | 563476 |
|  RadNet, Inc. (a) (b) | 16412 | 309038 |
|  Select Medical Holdings Corp. (b) | 35092 | 871334 |
|  Surgery Partners, Inc. (a) (b) | 16936 | 471837 |
|  U.S. Physical Therapy, Inc. (b) | 4409 | 357261 |
|  |  | 20743653 |
| **Health Care Technology—0.5%** |  |  |
|  Allscripts Healthcare Solutions, Inc. (a) | 38376 | 676953 |
|  American Well Corp. - Class A (a) (b) | 79266 | 224323 |
|  Computer Programs & Systems, Inc. (a) (b) | 5856 | 159400 |
|  Evolent Health, Inc. - Class A (a) | 27628 | 775794 |
| **Health Care Technology—(Continued)** |  |  |
|  Health Catalyst, Inc. (a) | 17486 | 185876 |
|  HealthStream, Inc. (a) | 9080 | 225547 |
|  Multiplan Corp. (a) (b) | 113659 | 130708 |
|  NextGen Healthcare, Inc. (a) (b) | 18311 | 343881 |
|  Nutex Health, Inc. (a) (b) | 88418 | 167994 |
|  OptimizeRx Corp. (a) (b) | 5787 | 97222 |
|  Pear Therapeutics, Inc. (a) (b) | 26979 | 31835 |
|  Phreesia, Inc. (a) | 17014 | 550573 |
|  Schrodinger, Inc. (a) | 18164 | 339485 |
|  Sharecare, Inc. (a) (b) | 91034 | 145654 |
|  Simulations Plus, Inc. (b) | 5451 | 199343 |
|  |  | 4254588 |
| **Hotels, Restaurants & Leisure—2.3%** |  |  |
|  Accel Entertainment, Inc. (a) | 19825 | 152653 |
|  Bally's Corp. (a) | 11756 | 227831 |
|  BJ's Restaurants, Inc. (a) (b) | 7697 | 203047 |
|  Bloomin' Brands, Inc. (b) | 29104 | 585573 |
|  Bluegreen Vacations Holding Corp. | 3848 | 96046 |
|  Bowlero Corp. (a) (b) | 10517 | 141769 |
|  Brinker International, Inc. (a) (b) | 14683 | 468535 |
|  Century Casinos, Inc. (a) | 9899 | 69590 |
|  Cheesecake Factory, Inc. (The) (b) | 16444 | 521439 |
|  Chuy's Holdings, Inc. (a) (b) | 5463 | 154603 |
|  Cracker Barrel Old Country Store, Inc. (b) | 7474 | 708087 |
|  Dave & Buster's Entertainment, Inc. (a) | 14842 | 526001 |
|  Denny's Corp. (a) | 17176 | 158191 |
|  Dine Brands Global, Inc. | 4863 | 314150 |
|  El Pollo Loco Holdings, Inc. | 6731 | 67041 |
|  Everi Holdings, Inc. (a) | 31005 | 444922 |
|  F45 Training Holdings, Inc. (a) (b) | 14491 | 41299 |
|  First Watch Restaurant Group, Inc. (a) | 5557 | 75186 |
|  Full House Resorts, Inc. (a) (b) | 11840 | 89037 |
|  Golden Entertainment, Inc. (a) | 7102 | 265615 |
|  Hilton Grand Vacations, Inc. (a) | 28976 | 1116735 |
|  Inspired Entertainment, Inc. (a) | 7791 | 98712 |
|  International Game Technology plc (b) | 33162 | 752114 |
|  Jack in the Box, Inc. | 7171 | 489277 |
|  Krispy Kreme, Inc. (b) | 24959 | 257577 |
|  Kura Sushi USA, Inc. - Class A (a) | 1484 | 70757 |
|  Life Time Group Holdings, Inc. (a) (b) | 15138 | 181051 |
|  Light & Wonder, Inc. (a) | 31817 | 1864476 |
|  Lindblad Expeditions Holdings, Inc. (a) | 10934 | 84192 |
|  Monarch Casino & Resort, Inc. (a) | 4396 | 338008 |
|  NEOGAMES S.A. (a) | 5231 | 63766 |
|  Noodles & Co. (a) | 7605 | 41751 |
|  ONE Group Hospitality, Inc. (a) | 7883 | 49663 |
|  Papa John's International, Inc. | 11008 | 906069 |
|  Portillo's, Inc. - Class A (a) (b) | 9053 | 147745 |
|  RCI Hospitality Holdings, Inc. (b) | 2918 | 271928 |
|  Red Rock Resorts, Inc. - Class A (b) | 16727 | 669247 |
|  Rush Street Interactive, Inc. (a) | 21900 | 78621 |
|  Ruth's Hospitality Group, Inc. (b) | 12375 | 191565 |
|  SeaWorld Entertainment, Inc. (a) | 13336 | 713609 |
|  Shake Shack, Inc. - Class A (a) (b) | 13241 | 549899 |
|  Sonder Holdings, Inc. (a) (b) | 44110 | 54696 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Hotels, Restaurants & Leisure—(Continued)** | | |
|  Sweetgreen, Inc. - Class A (a) (b) | 30832 | $264230 |
|  Target Hospitality Corp. (a) | 10601 | 160499 |
|  Texas Roadhouse, Inc. | 22773 | 2071204 |
|  Vacasa, Inc. - Class A (a) (b) | 11738 | 14790 |
|  Wingstop, Inc. (b) | 10057 | 1384044 |
|  Xponential Fitness, Inc. - Class A (a) | 6739 | 154525 |
|  |  | 18351365 |
| **Household Durables—1.5%** |  |  |
|  Beazer Homes USA, Inc. (a) | 10935 | 139531 |
|  Cavco Industries, Inc. (a) | 3093 | 699791 |
|  Century Communities, Inc. (b) | 9541 | 477145 |
|  Dream Finders Homes, Inc. - Class A (a) | 8135 | 70449 |
|  Ethan Allen Interiors, Inc. (b) | 7632 | 201638 |
|  GoPro, Inc. - Class A (a) (b) | 37780 | 188144 |
|  Green Brick Partners, Inc. (a) | 10016 | 242688 |
|  Helen of Troy, Ltd. (a) | 8022 | 889720 |
|  Hovnanian Enterprises, Inc. - Class A (a) (b) | 1923 | 80920 |
|  Installed Building Products, Inc. | 8305 | 710908 |
|  iRobot Corp. (a) (b) | 8888 | 427780 |
|  KB Home | 26061 | 830043 |
|  La-Z-Boy, Inc. (b) | 14484 | 330525 |
|  Legacy Housing Corp. (a) (b) | 3039 | 57619 |
|  LGI Homes, Inc. (a) (b) | 6929 | 641625 |
|  Lovesac Co. (The) (a) (b) | 4517 | 99419 |
|  M/I Homes, Inc. (a) | 9009 | 416036 |
|  MDC Holdings, Inc. | 19668 | 621509 |
|  Meritage Homes Corp. (a) (c) | 12250 | 1129450 |
|  Purple Innovation, Inc. (a) | 18839 | 90239 |
|  Skyline Champion Corp. (a) | 18238 | 939439 |
|  Snap One Holdings Corp. (a) (b) | 5851 | 43356 |
|  Sonos, Inc. (a) (b) | 43889 | 741724 |
|  Taylor Morrison Home Corp. (a) | 35301 | 1071385 |
|  TRI Pointe Group, Inc. (a) | 34643 | 644013 |
|  Tupperware Brands Corp. (a) | 6151 | 25465 |
|  Universal Electronics, Inc. (a) | 4412 | 91814 |
|  Vizio Holding Corp. - Class A (a) (b) | 24137 | 178855 |
|  Vuzix Corp. (a) (b) | 10807 | 39338 |
|  Weber, Inc. - Class A (b) | 9965 | 80218 |
|  |  | 12200786 |
| **Household Products—0.3%** |  |  |
|  Central Garden and Pet Co. (Voting Shares) (a) | 2845 | 106545 |
|  Central Garden and Pet Co. (Non-Voting Shares) - Class A (a) | 13396 | 479577 |
|  Energizer Holdings, Inc. (b) | 21970 | 737093 |
|  WD-40 Co. (b) | 4703 | 758171 |
|  |  | 2081386 |
| **Independent Power and Renewable Electricity Producers—0.5%** |  |  |
|  Altus Power, Inc. (a) (b) | 15727 | 102540 |
|  Clearway Energy, Inc. - Class A | 11424 | 341806 |
|  Clearway Energy, Inc. - Class C (b) | 28206 | 898925 |
|  Montauk Renewables, Inc. (a) | 22642 | 249741 |
|  Ormat Technologies, Inc. (b) | 16559 | 1432023 |
|  Sunnova Energy International, Inc. (a) (b) | 33397 | 601480 |
|  |  | 3626515 |
| **Industrial Conglomerates—0.0%** |  |  |
|  Brookfield Business Corp. - Class A | 9192 | 172718 |
| **Insurance—2.0%** |  |  |
|  Ambac Financial Group, Inc. (a) | 15807 | 275674 |
|  American Equity Investment Life Holding Co. | 24440 | 1114953 |
|  AMERISAFE, Inc. | 6927 | 359996 |
|  Argo Group International Holdings, Ltd. | 10670 | 275820 |
|  BRP Group, Inc. - Class A (a) | 20510 | 515621 |
|  CNO Financial Group, Inc. | 38653 | 883221 |
|  Donegal Group, Inc. - Class A | 5184 | 73613 |
|  eHealth, Inc. (a) (b) | 8539 | 41329 |
|  Employers Holdings, Inc. | 9556 | 412150 |
|  Enstar Group, Ltd. (a) | 3890 | 898746 |
|  Genworth Financial, Inc. - Class A (a) | 163703 | 865989 |
|  Goosehead Insurance, Inc. - Class A (a) (b) | 6359 | 218368 |
|  Greenlight Capital Re, Ltd. - Class A (a) | 4271 | 34809 |
|  HCI Group, Inc. (b) | 2458 | 97312 |
|  Hippo Holdings, Inc. (a) (b) | 6144 | 83558 |
|  Horace Mann Educators Corp. (b) | 13726 | 512941 |
|  Investors Title Co. | 444 | 65512 |
|  James River Group Holdings, Ltd. (b) | 13003 | 271893 |
|  Kinsale Capital Group, Inc. | 7295 | 1907788 |
|  Lemonade, Inc. (a) (b) | 15740 | 215323 |
|  MBIA, Inc. (a) (b) | 16483 | 211807 |
|  Mercury General Corp. | 9027 | 308723 |
|  National Western Life Group, Inc. - Class A (b) | 725 | 203725 |
|  NI Holdings, Inc. (a) | 2919 | 38735 |
|  Oscar Health, Inc. - Class A (a) (b) | 25331 | 62314 |
|  Palomar Holdings, Inc. (a) (b) | 8685 | 392215 |
|  ProAssurance Corp. | 19097 | 333625 |
|  RLI Corp. | 13117 | 1721869 |
|  Safety Insurance Group, Inc. (b) | 4806 | 404954 |
|  Selective Insurance Group, Inc. | 20065 | 1777960 |
|  Siriuspoint, Ltd. (a) | 25748 | 151913 |
|  Stewart Information Services Corp. | 9296 | 397218 |
|  Tiptree, Inc. - Class A | 8311 | 115024 |
|  Trupanion, Inc. (a) (b) | 13150 | 625019 |
|  United Fire Group, Inc. (b) | 7479 | 204625 |
|  Universal Insurance Holdings, Inc. | 5470 | 57927 |
|  |  | 16132269 |
| **Interactive Media & Services—0.7%** |  |  |
|  Arena Group Holdings, Inc. (The) (a) (b) | 4460 | 47320 |
|  Bumble, Inc. - Class A (a) (b) | 29360 | 618028 |
|  Cargurus, Inc. (a) | 35093 | 491653 |
|  Cars.com, Inc. (a) | 23858 | 328525 |
|  DHI Group, Inc. (a) | 6868 | 36332 |
|  Eventbrite, Inc. - Class A (a) (b) | 24116 | 141320 |
|  EverQuote, Inc. - Class A (a) (b) | 6835 | 100748 |
|  FuboTV, Inc. (a) (b) | 64001 | 111362 |
|  MediaAlpha, Inc. - Class A (a) (b) | 7846 | 78068 |
|  Outbrain, Inc. (a) (b) | 14324 | 51853 |
|  QuinStreet, Inc. (a) (b) | 18173 | 260782 |
|  Shutterstock, Inc. | 7975 | 420442 |
|  TrueCar, Inc. (a) | 29890 | 75024 |
|  Vimeo, Inc. (a) | 49749 | 170639 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Interactive Media & Services—(Continued)** | | |
|  Yelp, Inc. (a) | 23657 | $646782 |
|  Ziff Davis, Inc. (a) | 15404 | 1218456 |
|  ZipRecruiter, Inc. - Class A (a) (b) | 24978 | 410139 |
|  |  | 5207473 |
| **Internet & Direct Marketing Retail—0.3%** |  |  |
|  1-800-Flowers.com, Inc. - Class A (a) | 9265 | 88573 |
|  1stdibs.com, Inc. (a) | 9321 | 47351 |
|  BARK, Inc. (a) (b) | 22831 | 34018 |
|  CarParts.com, Inc. (a) (b) | 17448 | 109225 |
|  ContextLogic, Inc. - Class A (a) (b) | 133458 | 65088 |
|  Groupon, Inc. (a) (b) | 9992 | 85731 |
|  Liquidity Services, Inc. (a) (b) | 10346 | 145465 |
|  Overstock.com, Inc. (a) (b) | 15298 | 296169 |
|  PetMed Express, Inc. (b) | 6446 | 114094 |
|  Porch Group, Inc. (a) (b) | 33055 | 62143 |
|  Poshmark, Inc. - Class A (a) (b) | 16416 | 293518 |
|  Quotient Technology, Inc. (a) (b) | 19311 | 66237 |
|  Qurate Retail, Inc. - Series A (a) (b) | 98216 | 160092 |
|  RealReal, Inc. (The) (a) (b) | 2305 | 2881 |
|  Rent the Runway, Inc. - Class A (a) (b) | 18163 | 55397 |
|  Revolve Group, Inc. (a) (b) | 14472 | 322147 |
|  Stitch Fix, Inc. - Class A (a) (b) | 18254 | 56770 |
|  Vivid Seats, Inc. - Class A (a) | 9790 | 71467 |
|  Xometry, Inc. - Class A (a) (b) | 11657 | 375705 |
|  |  | 2452071 |
| **IT Services—1.9%** |  |  |
|  AvidXchange Holdings, Inc. (a) | 50990 | 506841 |
|  BigCommerce Holdings, Inc. (a) | 21617 | 188933 |
|  Brightcove, Inc. (a) (b) | 7169 | 37494 |
|  Cantaloupe, Inc. (a) | 10246 | 44570 |
|  Cass Information Systems, Inc. | 4551 | 208527 |
|  Cerberus Cyber Sentinel Corp. (a) (b) | 17980 | 45849 |
|  Conduent, Inc. (a) | 48443 | 196194 |
|  CSG Systems International, Inc. | 10433 | 596768 |
|  DigitalOcean Holdings, Inc. (a) (b) | 24216 | 616781 |
|  Edgio, Inc. (a) (b) | 16400 | 18532 |
|  EVERTEC, Inc. | 21016 | 680498 |
|  Evo Payments, Inc. - Class A (a) | 15616 | 528445 |
|  ExlService Holdings, Inc. (a) | 10891 | 1845262 |
|  Fastly, Inc. - Class A (a) (b) | 37575 | 307739 |
|  Flywire Corp. (a) | 19174 | 469188 |
|  Grid Dynamics Holdings, Inc. (a) (b) | 18166 | 203822 |
|  Hackett Group, Inc. (The) | 9515 | 193820 |
|  I3 Verticals, Inc. - Class A (a) (b) | 7082 | 172376 |
|  IBEX Holdings, Ltd. (a) (b) | 3027 | 75221 |
|  Information Services Group, Inc. | 11901 | 54745 |
|  International Money Express, Inc. (a) (b) | 11455 | 279158 |
|  Marqeta, Inc. - Class A (a) | 147303 | 900021 |
|  Maximus, Inc. | 20406 | 1496372 |
|  MoneyGram International, Inc. (a) | 31681 | 345006 |
|  Paya Holdings, Inc. (a) (b) | 33025 | 259907 |
|  Payoneer Global, Inc. (a) | 75412 | 412504 |
|  Paysafe, Ltd. (a) (b) | 9881 | 137247 |
|  Perficient, Inc. (a) | 11525 | 804791 |
| **IT Services—(Continued)** |  |  |
|  Rackspace Technology, Inc. (a) (b) | 19337 | 57044 |
|  Remitly Global, Inc. (a) | 35087 | 401746 |
|  Repay Holdings Corp. (a) (b) | 30117 | 242442 |
|  Sabre Corp. (a) (b) | 103327 | 638561 |
|  SolarWinds Corp. (a) (b) | 16368 | 153204 |
|  Squarespace, Inc. - Class A (a) | 11068 | 245378 |
|  StoneCo, Ltd. - Class A (a) | 93184 | 879657 |
|  TTEC Holdings, Inc. | 6343 | 279917 |
|  Tucows, Inc. - Class A (a) (b) | 3376 | 114514 |
|  Unisys Corp. (a) (b) | 23162 | 118358 |
|  Verra Mobility Corp. (a) | 47250 | 653467 |
|  |  | 15410899 |
| **Leisure Products—0.4%** |  |  |
|  Acushnet Holdings Corp. (b) | 11252 | 477760 |
|  AMMO, Inc. (a) (b) | 33699 | 58299 |
|  Clarus Corp. | 9026 | 70764 |
|  Johnson Outdoors, Inc. - Class A | 1720 | 113726 |
|  Latham Group, Inc. (a) | 16213 | 52206 |
|  Malibu Boats, Inc. - Class A (a) (b) | 6721 | 358229 |
|  MasterCraft Boat Holdings, Inc. (a) | 5356 | 138560 |
|  Smith & Wesson Brands, Inc. | 12650 | 109802 |
|  Sturm Ruger & Co., Inc. (b) | 6188 | 313237 |
|  Topgolf Callaway Brands Corp. (a) (b) | 47086 | 929949 |
|  Vinco Ventures, Inc. (a) (b) | 92664 | 42996 |
|  Vista Outdoor, Inc. (a) | 20009 | 487619 |
|  |  | 3153147 |
| **Life Sciences Tools & Services—0.7%** |  |  |
|  AbCellera Biologics, Inc. (a) (b) | 70604 | 715218 |
|  Absci Corp. (a) | 22021 | 46244 |
|  Adaptive Biotechnologies Corp. (a) | 37677 | 287852 |
|  Akoya Biosciences, Inc. (a) (b) | 6387 | 61124 |
|  Berkeley Lights, Inc. (a) | 17360 | 46525 |
|  Bionano Genomics, Inc. (a) (b) | 79407 | 115934 |
|  Codexis, Inc. (a) | 21179 | 98694 |
|  CryoPort, Inc. (a) | 14998 | 260215 |
|  Cytek Biosciences, Inc. (a) (b) | 39465 | 402938 |
|  MaxCyte, Inc. (a) (b) | 36112 | 197172 |
|  Medpace Holdings, Inc. (a) (b) | 8689 | 1845630 |
|  NanoString Technologies, Inc. (a) | 15548 | 123918 |
|  NeoGenomics, Inc. (a) | 42888 | 396285 |
|  OmniAb, Inc. (a) (b) | 27263 | 98147 |
|  Pacific Biosciences of California, Inc. (a) (b) | 76212 | 623414 |
|  Quanterix Corp. (a) (b) | 11230 | 155535 |
|  Quantum-Si, Inc. (a) (b) | 16613 | 30402 |
|  Seer, Inc. (a) (b) | 18742 | 108704 |
|  Singular Genomics Systems, Inc. (a) | 22098 | 44417 |
|  SomaLogic, Inc. (a) (b) | 36284 | 91073 |
|  |  | 5749441 |
| **Machinery—3.7%** |  |  |
|  3D Systems Corp. (a) (b) | 42023 | 310970 |
|  Alamo Group, Inc. | 3307 | 468271 |
|  Albany International Corp. - Class A | 10575 | 1042589 |
|  Altra Industrial Motion Corp. | 21905 | 1308824 |
|  Astec Industries, Inc. | 8361 | 339958 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Machinery—(Continued)** | | |
|  Barnes Group, Inc. (b) | 16460 | $672391 |
|  Blue Bird Corp. (a) (b) | 5919 | 63393 |
|  Chart Industries, Inc. (a) (b) | 14378 | 1656777 |
|  CIRCOR International, Inc. (a) | 6280 | 150469 |
|  Columbus McKinnon Corp. | 10074 | 327103 |
|  Desktop Metal, Inc. - Class A (a) (b) | 93415 | 127044 |
|  Douglas Dynamics, Inc. | 7665 | 277166 |
|  Energy Recovery, Inc. (a) (b) | 18812 | 385458 |
|  Enerpac Tool Group Corp. | 20140 | 512563 |
|  EnPro Industries, Inc. | 6856 | 745179 |
|  ESCO Technologies, Inc. | 8855 | 775167 |
|  Evoqua Water Technologies Corp. (a) | 40010 | 1584396 |
|  Federal Signal Corp. | 20069 | 932607 |
|  Franklin Electric Co., Inc. | 15834 | 1262762 |
|  Gorman-Rupp Co. (The) | 7300 | 187026 |
|  Greenbrier Cos., Inc. (The) (b) | 10684 | 358235 |
|  Helios Technologies, Inc. | 11222 | 610926 |
|  Hillenbrand, Inc. | 23410 | 998905 |
|  Hillman Solutions Corp. (a) (b) | 46403 | 334566 |
|  Hyliion Holdings Corp. (a) (b) | 44983 | 105260 |
|  Hyster-Yale Materials Handling, Inc. (b) | 3777 | 95596 |
|  Hyzon Motors, Inc. (a) (b) | 33428 | 51813 |
|  John Bean Technologies Corp. | 10810 | 987277 |
|  Kadant, Inc. | 3991 | 708921 |
|  Kennametal, Inc. | 28533 | 686504 |
|  Lindsay Corp. | 3673 | 598148 |
|  Luxfer Holdings plc (b) | 10353 | 142043 |
|  Manitowoc Co., Inc. (The) (a) | 9971 | 91334 |
|  Microvast Holdings, Inc. (a) (b) | 61208 | 93648 |
|  Miller Industries, Inc. | 3305 | 88111 |
|  Mueller Industries, Inc. | 18862 | 1112858 |
|  Mueller Water Products, Inc. - Class A | 52474 | 564620 |
|  Nikola Corp. (a) (b) | 112628 | 243277 |
|  Omega Flex, Inc. (b) | 1112 | 103772 |
|  Proterra, Inc. (a) (b) | 76278 | 287568 |
|  Proto Labs, Inc. (a) | 8980 | 229259 |
|  RBC Bearings, Inc. (a) (b) | 9695 | 2029648 |
|  REV Group, Inc. (b) | 10161 | 128232 |
|  Shyft Group, Inc. (The) | 12528 | 311446 |
|  SPX Technologies, Inc. (a) | 14614 | 959409 |
|  Standex International Corp. | 4024 | 412098 |
|  Tennant Co. | 5981 | 368250 |
|  Terex Corp. | 22471 | 959961 |
|  Titan International, Inc. (a) | 18172 | 278395 |
|  Trinity Industries, Inc. | 27337 | 808355 |
|  Wabash National Corp. | 17203 | 388788 |
|  Watts Water Technologies, Inc. - Class A | 9132 | 1335372 |
|  |  | 29602708 |
| **Marine—0.2%** |  |  |
|  Costamare, Inc. (b) | 18240 | 169267 |
|  Eagle Bulk Shipping, Inc. (b) | 4537 | 226578 |
|  Eneti, Inc. | 8218 | 82591 |
|  Genco Shipping & Trading, Ltd. (b) | 11163 | 171464 |
|  Golden Ocean Group, Ltd. (a) (b) | 41330 | 359158 |
|  Matson, Inc. (b) | 12834 | 802253 |
| **Marine—(Continued)** |  |  |
|  Safe Bulkers, Inc. | 11899 | 34626 |
|  |  | 1845937 |
| **Media—0.8%** |  |  |
|  Adeia, Inc. (b) | 35163 | 333345 |
|  Advantage Solutions, Inc. (a) (b) | 30307 | 63038 |
|  AMC Networks, Inc. - Class A (a) | 10133 | 158784 |
|  Boston Omaha Corp. - Class A (a) (b) | 7716 | 204474 |
|  Cardlytics, Inc. (a) | 11016 | 63672 |
|  Clear Channel Outdoor Holdings, Inc. (a) | 91739 | 96326 |
|  Cumulus Media, Inc. - Class A (a) | 6119 | 37999 |
|  Daily Journal Corp. (a) (b) | 413 | 103461 |
|  Entravision Communications Corp. - Class A | 13112 | 62938 |
|  EW Scripps Co. (The) - Class A (a) | 19856 | 261901 |
|  Gannett Co., Inc. (a) (b) | 31452 | 63847 |
|  Gray Television, Inc. | 29805 | 333518 |
|  iHeartMedia, Inc. - Class A (a) (b) | 39947 | 244875 |
|  Innovid Corp. (a) | 14365 | 24564 |
|  Integral Ad Science Holding Corp. (a) | 12716 | 111774 |
|  John Wiley & Sons, Inc. - Class A (b) | 14809 | 593248 |
|  Magnite, Inc. (a) (b) | 44965 | 476179 |
|  PubMatic, Inc. - Class A (a) (b) | 14669 | 187910 |
|  Scholastic Corp. (b) | 10323 | 407346 |
|  Sinclair Broadcast Group, Inc. - Class A (b) | 12733 | 197489 |
|  Stagwell, Inc. (a) | 26744 | 166080 |
|  TechTarget, Inc. (a) (b) | 9094 | 400682 |
|  TEGNA, Inc. | 75982 | 1610059 |
|  Thryv Holdings, Inc. (a) | 9046 | 171874 |
|  WideOpenWest, Inc. (a) | 18090 | 164800 |
|  |  | 6540183 |
| **Metals & Mining—1.5%** |  |  |
|  5E Advanced Materials, Inc. (a) (b) | 11608 | 91471 |
|  Alpha Metallurgical Resources, Inc. | 5134 | 751566 |
|  Arconic Corp. (a) | 34233 | 724370 |
|  ATI, Inc. (a) | 41824 | 1248865 |
|  Carpenter Technology Corp. | 16114 | 595251 |
|  Century Aluminum Co. (a) (b) | 17836 | 145899 |
|  Coeur Mining, Inc. (a) (b) | 84454 | 283766 |
|  Commercial Metals Co. | 39392 | 1902634 |
|  Compass Minerals International, Inc. | 11864 | 486424 |
|  Constellium SE (a) | 40645 | 480830 |
|  Dakota Gold Corp. (a) (b) | 19923 | 60765 |
|  Haynes International, Inc. | 3793 | 173302 |
|  Hecla Mining Co. (b) | 190581 | 1059631 |
|  Ivanhoe Electric, Inc. (US) (a) (b) | 5445 | 66157 |
|  Kaiser Aluminum Corp. | 5296 | 402284 |
|  Materion Corp. | 6859 | 600231 |
|  Novagold Resources, Inc. (a) (b) | 73695 | 440696 |
|  Olympic Steel, Inc. | 3243 | 108900 |
|  Piedmont Lithium, Inc. (a) | 6114 | 269138 |
|  Ramaco Resources, Inc. (b) | 7675 | 67463 |
|  Ryerson Holding Corp. | 6574 | 198929 |
|  Schnitzer Steel Industries, Inc. - Class A | 8757 | 268402 |
|  SunCoke Energy, Inc. | 29072 | 250891 |
|  TimkenSteel Corp. (a) (b) | 16152 | 293482 |
|  Warrior Met Coal, Inc. | 17236 | 597055 |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Metals & Mining—(Continued)** | | |
|  Worthington Industries, Inc. (b) | 10605 | $527175 |
|  |  | 12095577 |
| **Mortgage Real Estate Investment Trusts—1.1%** |  |  |
|  AFC Gamma, Inc. (b) | 5786 | 91014 |
|  Apollo Commercial Real Estate Finance, Inc. (b) | 46637 | 501814 |
|  Arbor Realty Trust, Inc. (b) | 56695 | 747807 |
|  Ares Commercial Real Estate Corp. (b) | 17797 | 183131 |
|  ARMOUR Residential REIT, Inc. (b) | 44480 | 250422 |
|  Blackstone Mortgage Trust, Inc. - Class A (b) | 58537 | 1239228 |
|  BrightSpire Capital, Inc. (b) | 27413 | 170783 |
|  Broadmark Realty Capital, Inc. (b) | 44009 | 156672 |
|  Chimera Investment Corp. (b) | 74114 | 407627 |
|  Claros Mortgage Trust, Inc. (b) | 31509 | 463497 |
|  Dynex Capital, Inc. (b) | 15184 | 193140 |
|  Ellington Financial, Inc. (b) | 18630 | 230453 |
|  Franklin BSP Realty Trust, Inc. (b) | 29093 | 375300 |
|  Granite Point Mortgage Trust, Inc. (b) | 12147 | 65108 |
|  Hannon Armstrong Sustainable Infrastructure Capital, Inc. (b) | 29370 | 851143 |
|  Invesco Mortgage Capital, Inc. (b) | 10803 | 137522 |
|  KKR Real Estate Finance Trust, Inc. (b) | 19694 | 274928 |
|  Ladder Capital Corp. | 39172 | 393287 |
|  MFA Financial, Inc. (b) | 33634 | 331295 |
|  New York Mortgage Trust, Inc. (b) | 118219 | 302641 |
|  Nexpoint Real Estate Finance, Inc. | 2764 | 43920 |
|  Orchid Island Capital, Inc. (b) | 12097 | 127019 |
|  PennyMac Mortgage Investment Trust (b) | 29854 | 369891 |
|  Ready Capital Corp. (b) | 25669 | 285953 |
|  Redwood Trust, Inc. (b) | 34200 | 231192 |
|  TPG RE Finance Trust, Inc. (b) | 20840 | 141504 |
|  Two Harbors Investment Corp. | 29085 | 458670 |
|  |  | 9024961 |
| **Multi-Utilities—0.5%** |  |  |
|  Avista Corp. | 24867 | 1102603 |
|  Black Hills Corp. | 21772 | 1531442 |
|  NorthWestern Corp. | 19325 | 1146745 |
|  Unitil Corp. | 5057 | 259728 |
|  |  | 4040518 |
| **Multiline Retail—0.1%** |  |  |
|  Big Lots, Inc. (b) | 10588 | 155644 |
|  Dillard's, Inc. - Class A (b) | 1334 | 431149 |
|  Franchise Group, Inc. (b) | 9820 | 233912 |
|  |  | 820705 |
| **Oil, Gas & Consumable Fuels—4.4%** |  |  |
|  Aemetis, Inc. (a) (b) | 667 | 2641 |
|  Alto Ingredients, Inc. (a) | 27235 | 78437 |
|  Amplify Energy Corp. (a) (b) | 12277 | 107915 |
|  Arch Resources, Inc. | 5183 | 740081 |
|  Ardmore Shipping Corp. (a) | 13795 | 198786 |
|  Berry Corp. | 25676 | 205408 |
|  California Resources Corp. (b) | 25104 | 1092275 |
|  Callon Petroleum Co. (a) | 16581 | 614989 |
|  Centennial Resource Development, Inc. - Class A (b) | 69322 | 651627 |
| **Oil, Gas & Consumable Fuels—(Continued)** |  |  |
|  Centrus Energy Corp. - Class A (a) (b) | 3474 | 112836 |
|  Chord Energy Corp. | 14046 | 1921633 |
|  Civitas Resources, Inc. | 24843 | 1439155 |
|  Clean Energy Fuels Corp. (a) (b) | 54120 | 281424 |
|  CNX Resources Corp. (a) | 60092 | 1011949 |
|  Comstock Resources, Inc. (b) | 30914 | 423831 |
|  CONSOL Energy, Inc. | 11564 | 751660 |
|  Crescent Energy, Inc. - Class A (b) | 12363 | 148232 |
|  CVR Energy, Inc. (b) | 10082 | 315970 |
|  Delek U.S. Holdings, Inc. (b) | 23703 | 639981 |
|  Denbury, Inc. (a) | 17329 | 1507970 |
|  DHT Holdings, Inc. (b) | 43310 | 384593 |
|  Dorian LPG, Ltd. (b) | 11086 | 210080 |
|  Earthstone Energy, Inc. - Class A (a) (b) | 14648 | 208441 |
|  Energy Fuels, Inc. (a) (b) | 45980 | 285536 |
|  Equitrans Midstream Corp. | 137245 | 919541 |
|  Excelerate Energy, Inc. - Class A (b) | 6800 | 170340 |
|  Flex LNG, Ltd. (a) (b) | 10006 | 327096 |
|  Frontline, Ltd. (b) | 42361 | 514263 |
|  Gevo, Inc. (a) (b) | 46943 | 89192 |
|  Golar LNG, Ltd. (a) | 34450 | 785115 |
|  Green Plains, Inc. (a) (b) | 17759 | 541649 |
|  Gulfport Energy Corp. (a) (b) | 4145 | 305238 |
|  HighPeak Energy, Inc. (b) | 2697 | 61680 |
|  International Seaways, Inc. | 16560 | 613051 |
|  Kinetik Holdings, Inc. (b) | 5614 | 185711 |
|  Kosmos Energy, Ltd. (a) (b) | 151784 | 965346 |
|  Laredo Petroleum, Inc. (a) (b) | 5753 | 295819 |
|  Magnolia Oil & Gas Corp. - Class A (b) | 59186 | 1387912 |
|  Matador Resources Co. | 37921 | 2170598 |
|  Murphy Oil Corp. | 49464 | 2127447 |
|  NACCO Industries, Inc. - Class A (b) | 1389 | 52782 |
|  NextDecade Corp. (a) (b) | 11051 | 54592 |
|  Nordic American Tankers, Ltd. | 54846 | 167829 |
|  Northern Oil and Gas, Inc. | 22081 | 680536 |
|  Par Pacific Holdings, Inc. (a) | 16282 | 378557 |
|  PBF Energy, Inc. - Class A | 33227 | 1354997 |
|  Peabody Energy Corp. (a) (b) | 39586 | 1045862 |
|  Ranger Oil Corp. - Class A | 6272 | 253577 |
|  REX American Resources Corp. (a) (b) | 5256 | 167456 |
|  Riley Exploration Permian, Inc. (b) | 4606 | 135555 |
|  Ring Energy, Inc. (a) (b) | 12828 | 31557 |
|  SandRidge Energy, Inc. (a) | 10783 | 183634 |
|  Scorpio Tankers, Inc. | 15850 | 852254 |
|  SFL Corp., Ltd. | 39560 | 364743 |
|  SilverBow Resources, Inc. (a) (b) | 3997 | 113035 |
|  Sitio Royalties Corp. - Class A (b) | 22877 | 660009 |
|  SM Energy Co. | 41402 | 1442032 |
|  Talos Energy, Inc. (a) (b) | 22318 | 421364 |
|  Teekay Corp. (a) | 15904 | 72204 |
|  Teekay Tankers, Ltd. - Class A (a) | 7500 | 231075 |
|  Tellurian, Inc. (a) (b) | 155326 | 260948 |
|  Ur-Energy, Inc. (a) (b) | 75333 | 86633 |
|  Uranium Energy Corp. (a) (b) | 119148 | 462294 |
|  VAALCO Energy, Inc. (b) | 36276 | 165419 |
|  Vertex Energy, Inc. (a) (b) | 11729 | 72720 |
|  W&T Offshore, Inc. (a) (b) | 32957 | 183900 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Oil, Gas & Consumable Fuels—(Continued)** | | |
|  World Fuel Services Corp. | 21674 | $592350 |
|  |  | 35283362 |
| **Paper & Forest Products—0.1%** |  |  |
|  Clearwater Paper Corp. (a) | 5381 | 203456 |
|  Glatfelter Corp. (b) | 3259 | 9060 |
|  Resolute Forest Products, Inc. (a) (b) | 15573 | 336221 |
|  Sylvamo Corp. | 12273 | 596345 |
|  |  | 1145082 |
| **Personal Products—0.7%** |  |  |
|  Beauty Health Co. (The) (a) (b) | 34332 | 312421 |
|  BellRing Brands, Inc. (a) | 45561 | 1168184 |
|  Edgewell Personal Care Co. (b) | 17393 | 670326 |
|  elf Beauty, Inc. (a) | 16536 | 914441 |
|  Herbalife Nutrition, Ltd. (a) | 33308 | 495623 |
|  Honest Co. Inc. (The) (a) (b) | 25893 | 77938 |
|  Inter Parfums, Inc. | 6203 | 598714 |
|  Medifast, Inc. (b) | 3603 | 415606 |
|  Nu Skin Enterprises, Inc. - Class A (b) | 16591 | 699476 |
|  USANA Health Sciences, Inc. (a) | 3693 | 196468 |
|  Veru, Inc. (a) (b) | 21948 | 115885 |
|  |  | 5665082 |
| **Pharmaceuticals—1.6%** |  |  |
|  Aclaris Therapeutics, Inc. (a) | 21806 | 343444 |
|  Amneal Pharmaceuticals, Inc. (a) (b) | 36199 | 72036 |
|  Amphastar Pharmaceuticals, Inc. (a) | 13014 | 364652 |
|  Amylyx Pharmaceuticals, Inc. (a) (b) | 17183 | 634912 |
|  ANI Pharmaceuticals, Inc. (a) | 4311 | 173432 |
|  Arvinas, Inc. (a) (b) | 16311 | 557999 |
|  Atea Pharmaceuticals, Inc. (a) (b) | 32816 | 157845 |
|  Axsome Therapeutics, Inc. (a) (b) | 10909 | 841411 |
|  Cara Therapeutics, Inc. (a) (b) | 18209 | 195565 |
|  Cassava Sciences, Inc. (a) (b) | 12781 | 377551 |
|  CinCor Pharma, Inc. (a) | 7403 | 90983 |
|  Collegium Pharmaceutical, Inc. (a) | 11356 | 263459 |
|  Corcept Therapeutics, Inc. (a) (b) | 30309 | 615576 |
|  DICE Therapeutics, Inc. (a) (b) | 12126 | 378331 |
|  Edgewise Therapeutics, Inc. (a) (b) | 15027 | 134341 |
|  Esperion Therapeutics, Inc. (a) | 22594 | 140761 |
|  Evolus, Inc. (a) (b) | 12622 | 94791 |
|  Fulcrum Therapeutics, Inc. (a) | 12205 | 88852 |
|  Harmony Biosciences Holdings, Inc. (a) (b) | 9337 | 514469 |
|  Innoviva, Inc. (a) | 21386 | 283365 |
|  Intra-Cellular Therapies, Inc. (a) | 31476 | 1665710 |
|  Liquidia Corp. (a) (b) | 16545 | 105392 |
|  Nektar Therapeutics (a) (b) | 61459 | 138897 |
|  NGM Biopharmaceuticals, Inc. (a) (b) | 11665 | 58558 |
|  Nuvation Bio, Inc. (a) (b) | 19876 | 38162 |
|  Ocular Therapeutix, Inc. (a) (b) | 12425 | 34914 |
|  Pacira BioSciences, Inc. (a) | 15246 | 588648 |
|  Phathom Pharmaceuticals, Inc. (a) | 7762 | 87090 |
|  Phibro Animal Health Corp. - Class A (b) | 6746 | 90464 |
|  Prestige Consumer Healthcare, Inc. (a) | 16788 | 1050929 |
|  Provention Bio, Inc. (a) (b) | 19889 | 210227 |
| **Pharmaceuticals—(Continued)** |  |  |
|  Reata Pharmaceuticals, Inc. - Class A (a) (b) | 9837 | 373708 |
|  Revance Therapeutics, Inc. (a) | 27227 | 502610 |
|  SIGA Technologies, Inc. (b) | 18339 | 134975 |
|  Supernus Pharmaceuticals, Inc. (a) (b) | 16728 | 596688 |
|  Tarsus Pharmaceuticals, Inc. (a) (b) | 6902 | 101183 |
|  Theravance Biopharma, Inc. (a) | 21852 | 245179 |
|  Ventyx Biosciences, Inc. (a) (b) | 8423 | 276190 |
|  Xeris Biopharma Holdings, Inc. (a) (b) | 16854 | 22416 |
|  |  | 12645715 |
| **Professional Services—1.6%** |  |  |
|  Alight, Inc. - Class A (a) (b) | 115533 | 965856 |
|  ASGN, Inc. (a) | 16523 | 1346294 |
|  Barrett Business Services, Inc. | 2279 | 212585 |
|  CBIZ, Inc. (a) (b) | 16340 | 765529 |
|  CRA International, Inc. | 2343 | 286853 |
|  Exponent, Inc. | 17133 | 1697709 |
|  First Advantage Corp. (a) | 20718 | 269334 |
|  Forrester Research, Inc. (a) | 3344 | 119581 |
|  Franklin Covey Co. (a) | 3849 | 180018 |
|  Heidrick & Struggles International, Inc. | 7497 | 209691 |
|  HireRight Holdings Corp. (a) (b) | 9930 | 117770 |
|  Huron Consulting Group, Inc. (a) (b) | 6931 | 503191 |
|  ICF International, Inc. | 6347 | 628670 |
|  Insperity, Inc. | 12214 | 1387510 |
|  Kelly Services, Inc. - Class A | 12354 | 208783 |
|  Kforce, Inc. | 7178 | 393570 |
|  Korn Ferry (b) | 17703 | 896126 |
|  LegalZoom.com, Inc (a) (b) | 33809 | 261682 |
|  Planet Labs PBC (a) (b) | 54596 | 237493 |
|  Red Violet, Inc. (a) | 3327 | 76588 |
|  Resources Connection, Inc. | 11231 | 206426 |
|  Spire Global, Inc. (a) | 47910 | 45994 |
|  Sterling Check Corp. (a) (b) | 10968 | 169675 |
|  TriNet Group, Inc. (a) | 12584 | 853195 |
|  TrueBlue, Inc. (a) (b) | 10956 | 214518 |
|  Upwork, Inc. (a) (b) | 41273 | 430890 |
|  Willdan Group, Inc. (a) (b) | 4570 | 81574 |
|  |  | 12767105 |
| **Real Estate Management & Development—0.6%** |  |  |
|  Anywhere Real Estate Inc, (a) | 34390 | 219752 |
|  Compass, Inc. - Class A (a) (b) | 90359 | 210536 |
|  Cushman & Wakefield plc (a) (b) | 53474 | 666286 |
|  DigitalBridge Group, Inc. | 55617 | 608450 |
|  Douglas Elliman, Inc. (b) | 27436 | 111665 |
|  eXp World Holdings, Inc. (b) | 22252 | 246552 |
|  Forestar Group, Inc. (a) | 6983 | 107608 |
|  FRP Holdings, Inc. (a) (b) | 2285 | 123070 |
|  Kennedy-Wilson Holdings, Inc. (b) | 41685 | 655705 |
|  Marcus & Millichap, Inc. (b) | 8728 | 300680 |
|  Newmark Group, Inc. - Class A | 49815 | 397026 |
|  RE/MAX Holdings, Inc. - Class A | 6249 | 116481 |
|  Redfin Corp. (a) (b) | 27890 | 118254 |
|  RMR Group, Inc. (The) - Class A (b) | 4706 | 132944 |
|  St. Joe Co. (The) | 11618 | 449036 |
|  Stratus Properties, Inc. | 2033 | 39217 |

---

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Real Estate Management & Development—(Continued)** | | |
|  Tejon Ranch Co. (a) | 7461 | $140565 |
|  |  | 4643827 |
| **Road & Rail—0.6%** |  |  |
|  ArcBest Corp. | 8408 | 588896 |
|  Covenant Logistics Group, Inc. | 3144 | 108688 |
|  Daseke, Inc. (a) (b) | 7659 | 43580 |
|  Heartland Express, Inc. (b) | 16789 | 257543 |
|  Marten Transport, Ltd. | 20880 | 413006 |
|  PAM Transportation Services, Inc. (a) (b) | 2312 | 59881 |
|  Saia, Inc. (a) | 8950 | 1876636 |
|  TuSimple Holdings, Inc. - Class A (a) (b) | 24046 | 39436 |
|  Universal Logistics Holdings, Inc. | 2513 | 84035 |
|  Werner Enterprises, Inc. | 21850 | 879681 |
|  |  | 4351382 |
| **Semiconductors & Semiconductor Equipment—2.5%** |  |  |
|  ACM Research, Inc. - Class A (a) | 16205 | 124941 |
|  Alpha & Omega Semiconductor, Ltd. (a) (b) | 7372 | 210618 |
|  Ambarella, Inc. (a) (b) | 12522 | 1029684 |
|  Amkor Technology, Inc. | 35047 | 840427 |
|  Atomera, Inc. (a) (b) | 2128 | 13236 |
|  Axcelis Technologies, Inc. (a) | 11021 | 874627 |
|  AXT, Inc. (a) | 5693 | 24935 |
|  Ceva, Inc. (a) (b) | 8407 | 215051 |
|  Cohu, Inc. (a) (b) | 15880 | 508954 |
|  Credo Technology Group Holding, Ltd. (a) (b) | 34289 | 456387 |
|  Diodes, Inc. (a) | 14825 | 1128776 |
|  FormFactor, Inc. (a) (c) | 26288 | 584382 |
|  Ichor Holdings, Ltd. (a) (b) | 10143 | 272035 |
|  Impinj, Inc. (a) (b) | 7085 | 773540 |
|  indie Semiconductor, Inc. - Class A (a) (b) | 35336 | 206009 |
|  Kulicke & Soffa Industries, Inc. (b) | 19165 | 848243 |
|  MACOM Technology Solutions Holdings, Inc. (a) | 17379 | 1094529 |
|  MaxLinear, Inc. (a) | 24378 | 827633 |
|  Onto Innovation, Inc. (a) | 16863 | 1148202 |
|  PDF Solutions, Inc. (a) (b) | 10025 | 285913 |
|  Photronics, Inc. (a) | 21105 | 355197 |
|  Power Integrations, Inc. | 19120 | 1371286 |
|  Rambus, Inc. (a) | 36035 | 1290774 |
|  Semtech Corp. (a) | 21007 | 602691 |
|  Silicon Laboratories, Inc. (a) (b) | 11133 | 1510414 |
|  SiTime Corp. (a) (b) | 5459 | 554744 |
|  SMART Global Holdings, Inc. (a) | 16723 | 248838 |
|  SunPower Corp. (a) (b) | 27543 | 496600 |
|  Synaptics, Inc. (a) | 13375 | 1272765 |
|  Ultra Clean Holdings, Inc. (a) (b) | 15549 | 515449 |
|  Veeco Instruments, Inc. (a) (b) | 18456 | 342913 |
|  |  | 20029793 |
| **Software—4.4%** |  |  |
|  8x8, Inc. (a) | 30039 | 129768 |
|  A10 Networks, Inc. | 21038 | 349862 |
|  ACI Worldwide, Inc. (a) | 38487 | 885201 |
|  Agilysys, Inc. (a) (b) | 6690 | 529447 |
|  Alarm.com Holdings, Inc. (a) | 16373 | 810136 |
| **Software—(Continued)** |  |  |
|  Alkami Technology, Inc. (a) (b) | 12712 | 185468 |
|  Altair Engineering, Inc. - Class A (a) (b) | 17467 | 794225 |
|  American Software, Inc. - Class A (b) | 11730 | 172196 |
|  Amplitude, Inc. - Class A (a) (b) | 19500 | 235560 |
|  Appfolio, Inc. - Class A (a) | 6540 | 689185 |
|  Appian Corp. (a) (b) | 13931 | 453593 |
|  Asana, Inc. - Class A (a) (b) | 25738 | 354412 |
|  AvePoint, Inc. (a) | 45466 | 186865 |
|  Benefitfocus, Inc. (a) | 8913 | 93230 |
|  Blackbaud, Inc. (a) | 16076 | 946233 |
|  Blackline, Inc. (a) (b) | 18622 | 1252702 |
|  Blend Labs, Inc. - Class A (a) (b) | 39380 | 56707 |
|  Box, Inc. - Class A (a) (b) | 47952 | 1492746 |
|  C3.ai, Inc. - Class A (a) | 20285 | 226989 |
|  Cerence, Inc. (a) (b) | 13068 | 242150 |
|  Clear Secure, Inc. - Class A (b) | 21433 | 587907 |
|  CommVault Systems, Inc. (a) | 15305 | 961766 |
|  Consensus Cloud Solutions, Inc. (a) (b) | 6453 | 346913 |
|  Couchbase, Inc. (a) (b) | 9433 | 125082 |
|  CS Disco, Inc. (a) (b) | 8074 | 51028 |
|  Cvent Holding Corp. (a) (b) | 18343 | 99052 |
|  Digimarc Corp. (a) (b) | 5494 | 101584 |
|  Digital Turbine, Inc. (a) (b) | 31408 | 478658 |
|  Domo, Inc. - Class B (a) | 9814 | 139751 |
|  Duck Creek Technologies, Inc. (a) | 26005 | 313360 |
|  E2open Parent Holdings, Inc. (a) (b) | 71031 | 416952 |
|  Ebix, Inc. (b) | 8704 | 173732 |
|  eGain Corp. (a) | 7231 | 65296 |
|  Enfusion, Inc. - Class A (a) (b) | 9141 | 88393 |
|  EngageSmart, Inc. (a) | 12404 | 218310 |
|  Envestnet, Inc. (a) | 18894 | 1165760 |
|  Everbridge, Inc. (a) | 13337 | 394508 |
|  EverCommerce, Inc. (a) (b) | 12206 | 90813 |
|  ForgeRock, Inc. - Class A (a) (b) | 13127 | 298902 |
|  Instructure Holdings, Inc. (a) | 6115 | 143336 |
|  Intapp, Inc. (a) (b) | 5137 | 128117 |
|  InterDigital, Inc. | 10312 | 510238 |
|  KnowBe4, Inc. - Class A (a) | 25095 | 621854 |
|  LivePerson, Inc. (a) (b) | 26766 | 271407 |
|  LiveRamp Holdings, Inc. (a) | 22504 | 527494 |
|  Marathon Digital Holdings, Inc. (a) (b) | 29263 | 100079 |
|  Matterport, Inc. (a) (b) | 76333 | 213732 |
|  MeridianLink, Inc. (a) (b) | 8983 | 123337 |
|  MicroStrategy, Inc. - Class A (a) (b) | 3203 | 453449 |
|  Mitek Systems, Inc. (a) (b) | 15147 | 146774 |
|  Model N, Inc. (a) (b) | 12650 | 513084 |
|  Momentive Global, Inc. (a) | 45741 | 320187 |
|  N-able, Inc. (a) (b) | 24099 | 247738 |
|  NextNav, Inc. (a) (b) | 28336 | 83024 |
|  Olo, Inc. - Class A (a) (b) | 31375 | 196094 |
|  ON24, Inc. (a) | 14977 | 129252 |
|  OneSpan, Inc. (a) | 13014 | 145627 |
|  PagerDuty, Inc. (a) (b) | 28642 | 760732 |
|  Progress Software Corp. (b) | 14833 | 748325 |
|  PROS Holdings, Inc. (a) | 13842 | 335807 |
|  Q2 Holdings, Inc. (a) | 18911 | 508139 |
|  Qualys, Inc. (a) | 13001 | 1459102 |
|  Rapid7, Inc. (a) | 19953 | 678003 |

---

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Software—(Continued)** | | |
|  Rimini Street, Inc. (a) (b) | 5072 | $19324 |
|  Riot Blockchain, Inc. (a) (b) | 53684 | 181989 |
|  Sapiens International Corp. NV (b) | 11177 | 206551 |
|  ShotSpotter, Inc. (a) (b) | 3138 | 106159 |
|  Sprout Social, Inc. - Class A (a) (b) | 15663 | 884333 |
|  SPS Commerce, Inc. (a) | 12153 | 1560810 |
|  Sumo Logic, Inc. (a) | 40580 | 328698 |
|  Telos Corp. (a) (b) | 19498 | 99245 |
|  Tenable Holdings, Inc. (a) | 37751 | 1440201 |
|  Upland Software, Inc. (a) | 10139 | 72291 |
|  UserTesting, Inc. (a) (b) | 17088 | 128331 |
|  Varonis Systems, Inc. (a) | 37442 | 896361 |
|  Verint Systems, Inc. (a) | 21871 | 793480 |
|  Veritone, Inc. (a) (b) | 10577 | 56058 |
|  Weave Communications, Inc. (a) (b) | 12297 | 56320 |
|  Workiva, Inc. (a) (b) | 16074 | 1349734 |
|  Xperi, Inc. | 14065 | 121100 |
|  Yext, Inc. (a) (b) | 37994 | 248101 |
|  Zeta Global Holdings Corp. - Class A (a) | 39653 | 323965 |
|  Zuora, Inc. - Class A (a) | 35718 | 227166 |
|  |  | 34669590 |
| **Specialty Retail—2.4%** |  |  |
|  Aaron's, Inc. (The) | 13892 | 166009 |
|  Abercrombie & Fitch Co. - Class A (a) | 16478 | 377511 |
|  Academy Sports & Outdoors, Inc. (b) | 26247 | 1379017 |
|  America's Car-Mart, Inc. (a) (b) | 2086 | 150734 |
|  American Eagle Outfitters, Inc. (b) | 53012 | 740048 |
|  Arko Corp. (b) | 31060 | 268980 |
|  Asbury Automotive Group, Inc. (a) (b) | 7450 | 1335412 |
|  Bed Bath & Beyond, Inc. (a) (b) | 14918 | 37444 |
|  Big 5 Sporting Goods Corp. (b) | 7812 | 68980 |
|  Boot Barn Holdings, Inc. (a) | 10047 | 628138 |
|  Buckle, Inc. (The) (b) | 10213 | 463160 |
|  Build-A-Bear Workshop, Inc. (a) | 4959 | 118223 |
|  Caleres, Inc. (b) | 13428 | 299176 |
|  Camping World Holdings, Inc. - Class A (b) | 12715 | 283799 |
|  Cato Corp. (The) - Class A | 6299 | 58770 |
|  Chico's FAS, Inc. (a) | 35028 | 172338 |
|  Children's Place, Inc. (The) (a) | 3971 | 144624 |
|  Citi Trends, Inc. (a) | 2791 | 73906 |
|  Container Store Group, Inc. (The) (a) (b) | 2938 | 12663 |
|  Designer Brands, Inc. - Class A (b) | 17144 | 167668 |
|  Destination XL Group, Inc. (a) (b) | 20962 | 141494 |
|  EVgo, Inc. (a) (b) | 24290 | 108576 |
|  Foot Locker, Inc. (b) | 27984 | 1057515 |
|  Genesco, Inc. (a) | 4989 | 229594 |
|  Group 1 Automotive, Inc. (b) | 4766 | 859643 |
|  GrowGeneration Corp. (a) (b) | 13528 | 53030 |
|  Guess?, Inc. (b) | 11608 | 240170 |
|  Haverty Furniture Cos., Inc. (b) | 4960 | 148304 |
|  Hibbett Sports, Inc. | 4141 | 282499 |
|  LL Flooring Holdings, Inc. (a) (b) | 4817 | 27072 |
|  MarineMax, Inc. (a) | 7339 | 229124 |
|  Monro, Inc. (b) | 10365 | 468498 |
|  Murphy USA, Inc. | 7052 | 1971316 |
|  National Vision Holdings, Inc. (a) (b) | 26199 | 1015473 |
| **Specialty Retail—(Continued)** |  |  |
|  ODP Corp. (The) (a) | 13523 | 615837 |
|  OneWater Marine, Inc. - Class A (a) (b) | 3644 | 104218 |
|  Rent-A-Center, Inc. (b) | 17965 | 405111 |
|  Sally Beauty Holdings, Inc. (a) (b) | 38900 | 487028 |
|  Shoe Carnival, Inc. (b) | 6132 | 146616 |
|  Signet Jewelers, Ltd. (b) | 15707 | 1068076 |
|  Sleep Number Corp. (a) (b) | 7502 | 194902 |
|  Sonic Automotive, Inc. - Class A (b) | 6087 | 299906 |
|  Sportsman's Warehouse Holdings, Inc. (a) (b) | 15500 | 145855 |
|  Tile Shop Holdings, Inc. (a) (b) | 10850 | 47523 |
|  Tilly's, Inc. - Class A (a) | 7804 | 70626 |
|  TravelCenters of America, Inc. (a) | 4817 | 215705 |
|  Urban Outfitters, Inc. (a) (b) | 21577 | 514611 |
|  Warby Parker, Inc. - Class A (a) (b) | 28895 | 389794 |
|  Winmark Corp. | 994 | 234415 |
|  Zumiez, Inc. (a) (b) | 5111 | 111113 |
|  |  | 18830244 |
| **Technology Hardware, Storage & Peripherals—0.3%** |  |  |
|  Avid Technology, Inc. (a) (b) | 12231 | 325222 |
|  Corsair Gaming, Inc. (a) | 13698 | 185882 |
|  Diebold Nixdorf, Inc. (a) (b) | 25673 | 36456 |
|  Eastman Kodak Co. (a) (b) | 7366 | 22466 |
|  IonQ, Inc. (a) (b) | 42228 | 145687 |
|  Super Micro Computer, Inc. (a) (b) | 15615 | 1281991 |
|  Turtle Beach Corp. (a) (b) | 5364 | 38460 |
|  Xerox Holdings Corp. | 38468 | 561633 |
|  |  | 2597797 |
| **Textiles, Apparel & Luxury Goods—0.7%** |  |  |
|  Allbirds, Inc. - Class A (a) (b) | 34384 | 83209 |
|  Crocs, Inc. (a) (c) | 20452 | 2217610 |
|  Ermenegildo Zegna N.V. (b) | 20835 | 218142 |
|  Fossil Group, Inc. (a) | 16285 | 70188 |
|  G-III Apparel Group, Ltd. (a) | 15756 | 216015 |
|  Kontoor Brands, Inc. (b) | 19434 | 777166 |
|  Movado Group, Inc. (b) | 4696 | 151446 |
|  Oxford Industries, Inc. | 5314 | 495159 |
|  PLBY Group, Inc. (a) (b) | 15915 | 43766 |
|  Rocky Brands, Inc. (b) | 2393 | 56523 |
|  Steven Madden, Ltd. | 26574 | 849305 |
|  Wolverine World Wide, Inc. (b) | 24519 | 267993 |
|  |  | 5446522 |
| **Thrifts & Mortgage Finance—1.3%** |  |  |
|  Axos Financial, Inc. (a) | 19507 | 745557 |
|  Blue Foundry Bancorp (a) (b) | 11482 | 147544 |
|  Bridgewater Bancshares, Inc. (a) (b) | 6071 | 107700 |
|  Capitol Federal Financial, Inc. (b) | 39516 | 341813 |
|  Columbia Financial, Inc. (a) (b) | 11020 | 238252 |
|  Enact Holdings, Inc. (b) | 10654 | 256974 |
|  Essent Group, Ltd. | 35218 | 1369276 |
|  Federal Agricultural Mortgage Corp. - Class C (b) | 3118 | 351430 |
|  Greene County Bancorp, Inc. | 1212 | 69593 |
|  Hingham Institution for Savings (The) | 473 | 130529 |
|  Home Bancorp, Inc. (b) | 2776 | 111123 |

---

*See accompanying notes to financial statements.* 

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **<br>Shares** | **Value** |
| **Thrifts & Mortgage Finance—(Continued)** | | |
|  Kearny Financial Corp. (b) | 17057 | $173129 |
|  Luther Burbank Corp. | 5087 | 56517 |
|  Merchants Bancorp (b) | 5967 | 145117 |
|  Mr Cooper Group, Inc. (a) | 23198 | 930936 |
|  NMI Holdings, Inc. - Class A (a) | 27709 | 579118 |
|  Northfield Bancorp, Inc. | 15870 | 249635 |
|  PCSB Financial Corp. | 4598 | 87546 |
|  PennyMac Financial Services, Inc. | 9037 | 512036 |
|  Pioneer Bancorp, Inc. (a) | 3994 | 45532 |
|  Provident Financial Services, Inc. | 24532 | 524003 |
|  Radian Group, Inc. | 53096 | 1012541 |
|  Southern Missouri Bancorp, Inc. | 3031 | 138911 |
|  TrustCo Bank Corp. | 5837 | 219413 |
|  Walker & Dunlop, Inc. | 10258 | 805048 |
|  Waterstone Financial, Inc. (b) | 8351 | 143971 |
|  WSFS Financial Corp. | 20665 | 936951 |
|  |  | 10430195 |
| **Tobacco—0.1%** |  |  |
|  22nd Century Group, Inc. (a) (b) | 15797 | 14541 |
|  Turning Point Brands, Inc. | 5617 | 121496 |
|  Universal Corp. | 8059 | 425596 |
|  Vector Group, Ltd. | 49588 | 588113 |
|  |  | 1149746 |
| **Trading Companies & Distributors—1.7%** |  |  |
|  Alta Equipment Group, Inc. (b) | 7040 | 92858 |
|  Applied Industrial Technologies, Inc. | 12837 | 1617847 |
|  Beacon Roofing Supply, Inc. (a) (b) | 17484 | 922980 |
|  BlueLinx Holdings, Inc. (a) | 2908 | 206788 |
|  Boise Cascade Co. | 13372 | 918255 |
|  Custom Truck One Source, Inc. (a) (b) | 14475 | 91482 |
|  Distribution Solutions Group, Inc. (a) (b) | 1694 | 62441 |
|  DXP Enterprises, Inc. (a) | 4806 | 132405 |
|  GATX Corp. (b) | 12037 | 1280015 |
|  Global Industrial Co. | 3989 | 93861 |
|  GMS, Inc. (a) | 14713 | 732707 |
|  H&E Equipment Services, Inc. | 10452 | 474521 |
|  Herc Holdings, Inc. | 8653 | 1138475 |
|  Hudson Technologies, Inc. (a) (b) | 14689 | 148653 |
|  McGrath RentCorp | 8030 | 792882 |
|  MRC Global, Inc. (a) | 28411 | 328999 |
|  NOW, Inc. (a) | 37163 | 471970 |
|  Rush Enterprises, Inc. - Class A | 13925 | 727999 |
|  Rush Enterprises, Inc. - Class B | 2388 | 134373 |
|  Textainer Group Holdings, Ltd. | 15539 | 481864 |
|  Titan Machinery, Inc. (a) | 6828 | 271277 |
|  Transcat, Inc. (a) (b) | 2285 | 161938 |
|  Triton International, Ltd. (b) | 19639 | 1350771 |
|  Veritiv Corp. (b) | 4355 | 530047 |
|  |  | 13165408 |
| **Water Utilities—0.5%** |  |  |
|  American States Water Co. | 12645 | 1170295 |
|  Artesian Resources Corp. - Class A | 2874 | 168359 |
|  California Water Service Group | 18456 | 1119172 |
|  Global Water Resources, Inc. | 4624 | 61406 |
|  Middlesex Water Co. | 5991 | 471312 |
|  Pure Cycle Corp. (a) | 6829 | 71568 |
|  SJW Group | 9303 | 755310 |
|  York Water Co. (The) | 5110 | 229848 |
|  |  | 4047270 |
| **Wireless Telecommunication Services—0.1%** |  |  |
|  Gogo, Inc. (a) | 16484 | 243304 |
|  Shenandoah Telecommunications Co. (b) | 16904 | 268435 |
|  Telephone & Data Systems, Inc. (b) | 34718 | 364192 |
|  United States Cellular Corp. (a) (b) | 5651 | 117823 |
|  |  | 993754 |
|  Total Common Stocks <br>(Cost $640,035,047) |  | 769770262 |
| **Mutual Funds—2.2%** |  |  |
| **Investment Company Securities—2.2%** |  |  |
|  iShares Russell 2000 Index Fund (b) <br>(Cost $18,144,743) | 102700 | 17906772 |
| **Rights—0.0%** |  |  |
| **Biotechnology—0.0%** |  |  |
|  Tobira Therapeutics, Inc. Expires 12/31/28 (a) (d) (e) | 4660 | 37094 |
| **Health Care Providers & Services—0.0%** |  |  |
|  OmniAb, Inc. Expires 10/26/27 (a) | 4218 | 0 |
| **Pharmaceuticals—0.0%** |  |  |
|  Zogenix, Inc. Expires 12/31/23 (a) (d) (e) | 24868 | 16910 |
|  Total Rights <br>(Cost $17,190) |  | 54004 |
| **Warrants—0.0%** |  |  |
| **Energy Equipment & Services—0.0%** |  |  |
|  Nabors Industries, Ltd. Expires 06/11/26 (a) <br>(Cost $0) | 882 | 29018 |
| **Escrow Shares—0.0%** |  |  |
| **Food & Staples Retailing—0.0%** |  |  |
|  Fresh Market, Inc. (a) (d) (e) <br>(Cost $0) | 21412 | 0 |

---

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investments—1.2%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **U.S. Treasury—1.2%** | | |
|  U.S. Treasury Bills<br>3.452%, 01/17/23 (f) | 1100000 | $1098427 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.733%, 01/24/23 (f) | 8475000 | 8456012 |
|  Total Short-Term Investments <br>(Cost $9,552,482) |  | 9554439 |
| **Securities Lending Reinvestments (g)—24.8%** |  |  |
| **Certificates of Deposit—9.3%** |  |  |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (h) | 2000000 | 2002702 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (h) | 4000000 | 4000000 |
|  Bank of Nova Scotia<br>4.550%, SOFR + 0.250%, 02/17/23 (h) | 2000000 | 1999909 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.770%, FEDEFF PRV + 0.440%, 01/09/23 (h) | 1000000 | 1000041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (h) | 5000000 | 5002101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (h) | 2000000 | 2002338 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (h) | 5000000 | 4999990 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (h) | 4000000 | 4001392 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (h) | 2000000 | 2000132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (h) | 4000000 | 4001531 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (h) | 3000000 | 3000213 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (h) | 2000000 | 2000601 |
|  MUFG Bank Ltd. (NY)<br>4.900%, SOFR + 0.600%, 01/25/23 (h) | 5000000 | 5001050 |
|  Nordea Bank Abp (NY)<br>4.760%, SOFR + 0.460%, 02/13/23 (h) | 2000000 | 2000342 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/21/23 (h) | 5000000 | 5001675 |
|  Rabobank (London)<br>4.830%, SOFR + 0.530%, 05/16/23 (h) | 2000000 | 2000000 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (h) | 3000000 | 2999952 |
|  Standard Chartered Bank (NY)<br>4.860%, FEDEFF PRV + 0.530%, 01/17/23 (h) | 2000000 | 2000246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.040%, SOFR + 0.740%, 05/02/23 (h) | 2000000 | 2003036 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (h) | 3000000 | 3000330 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.840%, SOFR + 0.540%, 01/10/23 (h) | 3000000 | 3000234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (h) | 2000000 | 2000556 |
|  Svenska Handelsbanken AB<br>4.900%, SOFR + 0.600%, 04/12/23 (h) | 2000000 | 2001358 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (h) | 4000000 | 3999825 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (h) | 2000000 | 1999780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (h) | 1000000 | 1000341 |
|  |  | 74019675 |
| **Commercial Paper—1.3%** |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (h) | 5000000 | 5006810 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (h) | 1000000 | 1000988 |
|  United Overseas Bank, Ltd.<br>4.850%, SOFR + 0.550%, 02/03/23 (h) | 4000000 | 4000964 |
|  |  | 10008762 |
| **Master Demand Notes—0.3%** |  |  |
|  Bank of America N.A.<br>4.880%, SOFR + 0.580%, 05/15/23 (h) | 2000000 | 1999977 |
| **Repurchase Agreements—10.0%** |  |  |
|  Citigroup Global Markets, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $2,008,983; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $2,040,000. | 2000000 | 2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $6,150,158; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $6,120,001. | 6000000 | 6000000 |
|  Goldman Sachs & Co. <br>Repurchase Agreement dated 12/30/22 at 4.150%, due on 01/03/23 with a maturity value of $21,973,498; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 7.625%, maturity dates ranging from 01/24/23 - 11/15/52, and an aggregate market value of $22,402,389. | 21963126 | 21963126 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $2,040,963. | 2000000 | 2000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $3,001,440; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $3,071,608. | 3000000 | 3000000 |
|  National Bank of Canada<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $6,505,460; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 01/31/23 - 11/15/32, and an aggregate market value of $6,645,458. | 6500000 | 6500000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $25,021,632; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $27,220,713. | 25000000 | 25000000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (g)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | | |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $3,013,563; collateralized by various Common Stock with an aggregate market value of $3,333,764. | 3000000 | $3000000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $500,236; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $510,903. | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $1,000,488; collateralized by various Common Stock with an aggregate market value of $1,112,847. | 1000000 | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $3,903,352; collateralized by various Common Stock with an aggregate market value of $4,341,448. | 3900000 | 3900000 |
|  TD Prime Services LLC<br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $5,002,445; collateralized by various Common Stock with an aggregate market value of $5,588,202. | 5000000 | 5000000 |
|  |  | 79863126 |
| **Time Deposits—1.0%** |  |  |
|  First Abu Dhabi Bank USA NV<br>4.300%, 01/03/23 | 3000000 | 3000000 |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (h) | 5000000 | 5000000 |
|  |  | 8000000 |
| **Mutual Funds—2.9%** |  |  |
|  AB Government Money Market Portfolio, Institutional Class <br>4.110% (i) | 5000000 | 5000000 |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (i) | 2000000 | 2000000 |
|  Fidelity Investments Money Market Government Portfolio, Institutional Class 4.100% (i) | 3000000 | 3000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (i) | 1000000 | 1000000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (i) | 2000000 | 2000000 |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (i) | 5000000 | 5000000 |
| **Mutual Funds—(Continued)** |  |  |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (i) | 5000000 | 5000000 |
|  |  | 23000000 |
|  Total Securities Lending Reinvestments <br>(Cost $196,863,126) |  | 196891540 |
|  Total Investments— 124.8% <br>(Cost $864,612,588) |  | 994206035 |
|  Other assets and liabilities (net)—(24.8)% |  | (197646526) |
| **Net Assets—100.0%** |  | $796559509 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $192,924,235 and the collateral received consisted of cash in the amount of $196,863,126 and non-cash collateral with a value of $1,525,071. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $4,064,303.

(d) Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3.

(e) Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent less than 0.05% of net assets.

(f) The rate shown represents current yield to maturity.

(g) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(h) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(i) The rate shown represents the annualized seven-day yield as of December 31, 2022.

*See accompanying notes to financial statements.* 

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Russell 2000 Index E-Mini Futures  | 03/17/23 | 100 | USD | 8854500 | $(255500) |

---

**Glossary of Abbreviations** 

Currencies

------

(USD)— United States Dollar

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

Other Abbreviations<u> </u>

------

(REIT)— Real Estate Investment Trust

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $7862674 | $— | $— | $7862674 |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Freight & Logistics | 3314173 |  |  | 3314173 |
| &nbsp;&nbsp;&nbsp;&nbsp; Airlines | 2279033 |  |  | 2279033 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | 10167336 |  |  | 10167336 |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | 1150706 |  |  | 1150706 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks | 77328886 |  |  | 77328886 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages | 4910793 |  |  | 4910793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology | 56621839 |  |  | 56621839 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Products | 9988650 |  |  | 9988650 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 12265193 |  |  | 12265193 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 16055918 |  |  | 16055918 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services & Supplies | 11159174 |  |  | 11159174 |
| &nbsp;&nbsp;&nbsp;&nbsp; Communications Equipment | 6922290 |  |  | 6922290 |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction & Engineering | 12577919 |  |  | 12577919 |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction Materials | 1242505 |  |  | 1242505 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Finance | 5363478 |  |  | 5363478 |
| &nbsp;&nbsp;&nbsp;&nbsp; Containers & Packaging | 2545700 |  |  | 2545700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributors | 151425 |  |  | 151425 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Consumer Services | 7688596 |  |  | 7688596 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Financial Services | 2249593 |  |  | 2249593 |

---

*See accompanying notes to financial statements.* 

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Telecommunication Services | $5115737 | $— | $— | $5115737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electric Utilities | 5845028 |  |  | 5845028 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment | 10467647 |  |  | 10467647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electronic Equipment, Instruments & Components | 17915104 |  |  | 17915104 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Equipment & Services | 17165256 |  |  | 17165256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment | 2141992 |  |  | 2141992 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Real Estate Investment Trusts | 44480189 |  |  | 44480189 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food & Staples Retailing | 4683471 |  |  | 4683471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food Products | 9354065 |  |  | 9354065 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gas Utilities | 9560131 |  |  | 9560131 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 29826987 |  |  | 29826987 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 20743653 |  |  | 20743653 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Technology | 4254588 |  |  | 4254588 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 18351365 |  |  | 18351365 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Durables | 12200786 |  |  | 12200786 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products | 2081386 |  |  | 2081386 |
| &nbsp;&nbsp;&nbsp;&nbsp; Independent Power and Renewable Electricity Producers | 3626515 |  |  | 3626515 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Conglomerates | 172718 |  |  | 172718 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 16132269 |  |  | 16132269 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interactive Media & Services | 5207473 |  |  | 5207473 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | 2452071 |  |  | 2452071 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 15410899 |  |  | 15410899 |
| &nbsp;&nbsp;&nbsp;&nbsp; Leisure Products | 3153147 |  |  | 3153147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 5749441 |  |  | 5749441 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 29602708 |  |  | 29602708 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marine | 1845937 |  |  | 1845937 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media | 6540183 |  |  | 6540183 |
| &nbsp;&nbsp;&nbsp;&nbsp; Metals & Mining | 12095577 |  |  | 12095577 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Real Estate Investment Trusts | 9024961 |  |  | 9024961 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multi-Utilities | 4040518 |  |  | 4040518 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multiline Retail | 820705 |  |  | 820705 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 35283362 |  |  | 35283362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Paper & Forest Products | 1145082 |  |  | 1145082 |
| &nbsp;&nbsp;&nbsp;&nbsp; Personal Products | 5665082 |  |  | 5665082 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 12645715 |  |  | 12645715 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional Services | 12767105 |  |  | 12767105 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Management & Development | 4643827 |  |  | 4643827 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 4351382 |  |  | 4351382 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 20029793 |  |  | 20029793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 34669590 |  |  | 34669590 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 18830244 |  |  | 18830244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology Hardware, Storage & Peripherals | 2597797 |  |  | 2597797 |
| &nbsp;&nbsp;&nbsp;&nbsp; Textiles, Apparel & Luxury Goods | 5446522 |  |  | 5446522 |
| &nbsp;&nbsp;&nbsp;&nbsp; Thrifts & Mortgage Finance | 10430195 |  |  | 10430195 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tobacco | 1149746 |  |  | 1149746 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading Companies & Distributors | 13165408 |  |  | 13165408 |
| &nbsp;&nbsp;&nbsp;&nbsp; Water Utilities | 4047270 |  |  | 4047270 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wireless Telecommunication Services | 993754 |  |  | 993754 |
|  Total Common Stocks | 769770262 |  |  | 769770262 |
|  Total Mutual Funds\* | 17906772 |  |  | 17906772 |
|  Total Rights\* |  | 0 | 54004 | 54004 |
|  Total Warrants\* | 29018 |  |  | 29018 |
|  Total Escrow Shares\* |  |  | 0 | 0 |
|  Total Short-Term Investments\* |  | 9554439 |  | 9554439 |

---

*See accompanying notes to financial statements.* 

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit | $— | $74019675 | $— | $74019675 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 10008762 |  | 10008762 |
| &nbsp;&nbsp;&nbsp;&nbsp; Master Demand Notes |  | 1999977 |  | 1999977 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 79863126 |  | 79863126 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposits |  | 8000000 |  | 8000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 23000000 |  |  | 23000000 |
|  Total Securities Lending Reinvestments | 23000000 | 173891540 |  | 196891540 |
|  Total Investments | $810706052 | $183445979 | $54004 | $994206035 |
|  Collateral for Securities Loaned (Liability) | $— | $(196863126) | $— | $(196863126) |
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | $(255500) | $— | $— | $(255500) |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

*See accompanying notes to financial statements.* 

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $994206035 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 69366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 692793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 962978 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 995934244 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 97100 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 196863126 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 697480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 1071367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 31000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 171635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 81776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 208700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 199374735 |
|  **Net Assets** | $796559509 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $654132557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 142426952 |
|  **Net Assets** | $796559509 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $444621125 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 172100109 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 17976788 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 161861487 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 28862296 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 11633811 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1178552 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 11031106 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $15.40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 14.79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 15.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 14.67 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $864,612,588.

(b) Includes securities loaned at value of $192,924,235.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $11919256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 114536 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 1592320 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 13626112 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 2194893 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 47455 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 109618 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 479559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 30403 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class G | 532708 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 50044 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 48432 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 89551 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 7615 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 91882 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 3691734 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (18983) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 3672751 |
|  **Net Investment Income** | 9953361 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 16177766 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (2235664) |
|  Net realized gain (loss) | 13942102 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (235315880) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (210102) |
|  Net change in unrealized appreciation (depreciation) | (235525982) |
|  Net realized and unrealized gain (loss) | (221583880) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(211630519) |

---

(a) Net of foreign withholding taxes of $19,650.

*See accompanying notes to financial statements.* 

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $9953361 | $7321693 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 13942102 | 159065147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (235525982) | (25230029) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (211630519) | 141156811 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (91952917) | (36104548) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (36689310) | (14523579) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (3810032) | (1531758) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class G | (34310663) | (11963294) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (166762922) | (64123179) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 116158599 | (12433448) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (262234842) | 64600184 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1058794351 | 994194167 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $796559509 | $1058794351 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1581100 | $28530255 | 2858857 | $71278112 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 6130195 | 91952917 | 1457004 | 36104548 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3305338) | (59384543) | (3989132) | (98656705) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 4405957 | $61098629 | 326729 | $8725955 |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 551272 | $9549287 | 601925 | $14318942 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 2544335 | 36689310 | 605149 | 14523579 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1455986) | (24957387) | (2152604) | (51617946) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1639621 | $21281210 | (945530) | $(22775425) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 105288 | $1881073 | 101392 | $2491691 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 256395 | 3810032 | 62292 | 1531758 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (218489) | (3805880) | (221092) | (5404237) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 143194 | $1885225 | (57408) | $(1380788) |
|  **Class G** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 980158 | $18094196 | 1283858 | $30389876 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 2397670 | 34310663 | 501395 | 11963294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1220436) | (20511324) | (1647559) | (39356360) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 2157392 | $31893535 | 137694 | $2996810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $116158599 |  | $(12433448) |

---

*See accompanying notes to financial statements.* 

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $24.24 | $22.47 | $20.30 | $18.13 | $21.98 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.23 | 0.20 | 0.21 | 0.25 | 0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.23) | 3.09 | 3.26 | 4.16 | (2.34) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.00) | 3.29 | 3.47 | 4.41 | (2.08) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.22) | (0.25) | (0.25) | (0.25) | (0.25) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.62) | (1.27) | (1.05) | (1.99) | (1.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.84) | (1.52) | (1.30) | (2.24) | (1.77) |
|  **Net Asset Value, End of Period** | $15.40 | $24.24 | $22.47 | $20.30 | $18.13 |
|  **Total Return (%)** (b) | (20.23) | 14.52 | 19.62 | 25.62 | (10.97) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.30 | 0.30 | 0.32 | 0.31 | 0.31 |
|  Net ratio of expenses to average net assets (%) (c) | 0.30 | 0.30 | 0.32 | 0.31 | 0.31 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.25 | 0.80 | 1.16 | 1.27 | 1.17 |
|  Portfolio turnover rate (%) | 22 | 36 | 34 | 19 | 26 |
|  Net assets, end of period (in millions) | $444.6 | $592.8 | $542.2 | $504.4 | $441.5 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $23.45 | $21.79 | $19.72 | $17.66 | $21.45 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.17 | 0.13 | 0.16 | 0.19 | 0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.05) | 3.00 | 3.16 | 4.05 | (2.27) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (4.88) | 3.13 | 3.32 | 4.24 | (2.07) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.16) | (0.20) | (0.20) | (0.19) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.62) | (1.27) | (1.05) | (1.99) | (1.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.78) | (1.47) | (1.25) | (2.18) | (1.72) |
|  **Net Asset Value, End of Period** | $14.79 | $23.45 | $21.79 | $19.72 | $17.66 |
|  **Total Return (%)** (b) | (20.44) | 14.23 | 19.35 | 25.30 | (11.18) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.55 | 0.55 | 0.57 | 0.56 | 0.56 |
|  Net ratio of expenses to average net assets (%) (c) | 0.55 | 0.55 | 0.57 | 0.56 | 0.56 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.00 | 0.54 | 0.91 | 1.01 | 0.92 |
|  Portfolio turnover rate (%) | 22 | 36 | 34 | 19 | 26 |
|  Net assets, end of period (in millions) | $172.1 | $234.3 | $238.3 | $227.8 | $205.8 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Financial Highlights** 

**Selected per share data** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $24.03 | $22.30 | $20.15 | $18.01 | $21.84 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.20 | 0.16 | 0.18 | 0.22 | 0.22 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.18) | 3.06 | 3.24 | 4.12 | (2.31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (4.98) | 3.22 | 3.42 | 4.34 | (2.09) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.18) | (0.22) | (0.22) | (0.21) | (0.22) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.62) | (1.27) | (1.05) | (1.99) | (1.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.80) | (1.49) | (1.27) | (2.20) | (1.74) |
|  **Net Asset Value, End of Period** | $15.25 | $24.03 | $22.30 | $20.15 | $18.01 |
|  **Total Return (%)** (b) | (20.33) | 14.31 | 19.45 | 25.40 | (11.08) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.45 | 0.45 | 0.47 | 0.46 | 0.46 |
|  Net ratio of expenses to average net assets (%) (c) | 0.45 | 0.45 | 0.47 | 0.46 | 0.46 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.10 | 0.65 | 1.01 | 1.11 | 1.01 |
|  Portfolio turnover rate (%) | 22 | 36 | 34 | 19 | 26 |
|  Net assets, end of period (in millions) | $18 | $24.9 | $24.4 | $23.9 | $21.9 |
|  | **Class G** | **Class G** | **Class G** | **Class G** | **Class G** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $23.30 | $21.66 | $19.62 | $17.59 | $21.37 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.16 | 0.12 | 0.15 | 0.18 | 0.19 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.02) | 2.99 | 3.14 | 4.03 | (2.26) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (4.86) | 3.11 | 3.29 | 4.21 | (2.07) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.15) | (0.20) | (0.20) | (0.19) | (0.19) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.62) | (1.27) | (1.05) | (1.99) | (1.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.77) | (1.47) | (1.25) | (2.18) | (1.71) |
|  **Net Asset Value, End of Period** | $14.67 | $23.30 | $21.66 | $19.62 | $17.59 |
|  **Total Return (%)** (b) | (20.46) | 14.19 | 19.26 | 25.20 | (11.20) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.60 | 0.60 | 0.62 | 0.61 | 0.61 |
|  Net ratio of expenses to average net assets (%) (c) | 0.60 | 0.60 | 0.62 | 0.61 | 0.61 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.96 | 0.50 | 0.86 | 0.97 | 0.88 |
|  Portfolio turnover rate (%) | 22 | 36 | 34 | 19 | 26 |
|  Net assets, end of period (in millions) | $161.9 | $206.8 | $189.3 | $166 | $135.7 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Russell 2000 Index Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $97,100 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $79,863,126, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(179261420) | $— | $— | $— | $(179261420) |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | (17601706) |  |  |  | (17601706) |
|  **Total Borrowings** | $**(196863126)** | $**—** | $**—** | $**—** | $**(196863126)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(196863126) |

---

**3. Investments in Derivative Instruments** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

---

| | | |
|:---|:---|:---|
|  | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets & <br>Liabilities Location** | **Fair Value** |
|  Equity | Unrealized depreciation on futures contracts (a) | $255500 |

---

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Statement of Operations Location—Net Realized Gain (Loss)** | **Equity** |
|  Futures contracts | $(2235664) |
| **Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)** | **Equity** |
|  Futures contracts | $(210102) |

---

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Futures contracts long | $9365667 |

---

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**BHFTII-34** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with

**BHFTII-35** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $190634589 | $0 | $221394809 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2022 were $2,194,893.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Management, LLC ("MIM") with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIM an investment subadvisory fee for each class of the Portfolio as follows:

---

| | | |
|:---|:---|:---|
| **% per annum** | **Average Daily Net Assets** | **Average Daily Net Assets** |
| 0.040% |  | On the first $500 million |
| 0.030% |  | Of the next $500 million |
| 0.015% | On amounts over $| 1 billion |

---

Fees earned by MIM with respect to the Portfolio for the year ended December 31, 2022 were $313,132.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.005% | Over $500 million and under $1 billion |
| 0.010% | Of the next $1 billion |
| 0.015% | On amounts over $2 billion |

---

**BHFTII-36** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $875847987 |
|  Gross unrealized appreciation | 249249460 |
|  Gross unrealized (depreciation) | (130891412) |
|  Net unrealized appreciation (depreciation) | 118358048 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $24200005 | $16321007 | $142562917 | $47802172 | $166762922 | $64123179 |

---

**BHFTII-37** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $9513730 | $14707724 | $118358049 | $– $| 142579503 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**9. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-38** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MetLife Russell 2000 Index Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Russell 2000 Index Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Russell 2000 Index Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-39** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-40** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-41** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-42** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-43** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MetLife Russell 2000 Index Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Management, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe for the one- and three-year periods ended June 30, 2022 and outperformed the median of its Performance Universe for the five-year period ended June 30, 2022. The Board also considered that the Portfolio underperformed the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Index, for the one-year period ended October 31, 2022 and underperformed its benchmark for the three- and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-44** 

------

**Brighthouse Funds Trust II** 

**MetLife Russell 2000 Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-45** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Managed By MetLife Investment Management, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, D, E and G shares of the MetLife Stock Index Portfolio returned -18.30%, -18.51%, -18.38%, -18.43%, and -18.55%, respectively. The Portfolio's benchmark, the Standard & Poor's ("S&P") 500 Index¹, returned -18.11%.

**MARKET ENVIRONMENT / CONDITIONS** 

Equity markets declined in 2022 as the U.S. Federal Reserve (the "Fed") aggressively raised interest rates to address higher inflation. Tight labor markets and ongoing supply and demand imbalances drove inflation to a new 40-year high. In addition, investor concerns about rising recession risks, lingering pandemic effects, and the ongoing Russian invasion of Ukraine were negatives for the market. Factors that supported the equity markets included signs that inflation data was decelerating, and the Fed might begin pausing interest rate increases. In addition, equity investors were hopeful that the end of Chinese lockdowns might eventually boost the global economy.

During the year, the Federal Open Market Committee (the "FOMC") met eight times. In December, the FOMC decided to raise the Federal Funds Rate target range from 3.75% - 4.00% to 4.25% - 4.50%. The FOMC stated that inflation remained elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures. The FOMC seeks to achieve maximum employment and inflation at the rate of 2 percent over the long run.

Nine of the eleven sectors comprising the S&P 500 Index experienced negative returns for the year. Energy (2.6% beginning weight in the benchmark), up 65.7%, was the best performing sector and had the largest positive impact on the benchmark return. Communication Services (10.2% beginning weight), down 39.9%; Consumer Discretionary (12.5% beginning weight), down 37.3%; and Information Technology (29.2% beginning weight), down 28.2%, were the worst-performing sectors.

The stocks with the largest positive impact to the benchmark return for the year were Exxon Mobil, up 87.4%; Chevron, up 58.5%; and Merck, up 49.4%. The stocks with the largest negative impact were Amazon, down 49.6%; Microsoft, down 28.0%; and Apple, down 26.4%.

**PORTFOLIO REVIEW / CURRENT POSITIONING** 

The Portfolio is managed utilizing a full replication strategy versus the S&P 500 Index. This strategy seeks to replicate the performance of the Index by owning all of the components of the Index at their respective Index capitalization weights. The Portfolio is periodically rebalanced for compositional changes in the S&P 500 Index. Factors that impact tracking error include transaction costs, cash drag, securities lending, net asset value (NAV) rounding, and contributions and withdrawals.

**Stacey Lituchy** 

**Norman Hu** 

**Mirsad Usejnoski** 

Portfolio Managers

*MetLife Investment Management, LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The S&P 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-weighted index (stock price times number of shares outstanding) with each stock's weight in the Index proportionate to its market value.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX**![LOGO](g400324g05o28.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** | **Since Inception<sup>1</sup>** |
| &nbsp;&nbsp;&nbsp;**MetLife Stock Index Portfolio** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -18.30 | 9.16 | 12.28 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -18.51 | 8.88 | 12.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class D** | -18.38 | 9.05 | 12.17 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -18.43 | 8.99 | 12.11 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class G** | -18.55 | 8.83 |  | 9.57 |
| &nbsp;&nbsp;&nbsp;**S&P 500 Index** | -18.11 | 9.43 | 12.56 |  |

---

<sup>1</sup> Inception dates of the Class A, Class B, Class D, Class E and Class G shares are 5/1/90, 1/2/01, 4/28/09, 5/1/01 and 11/12/14, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Apple, Inc.** | **6.0** |
| **Microsoft Corp.** | **5.5** |
| **Amazon.com, Inc.** | **2.3** |
| **Berkshire Hathaway, Inc.- Class B** | **1.7** |
| **Alphabet, Inc.- Class A** | **1.6** |
| **UnitedHealth Group, Inc.** | **1.5** |
| **Alphabet, Inc.- Class C** | **1.4** |
| **Johnson & Johnson** | **1.4** |
| **Exxon Mobil Corp.** | **1.4** |
| **SPDR S&P 500 ETF Trust** | **1.3** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Information Technology** | **25.3** |
| **Health Care** | **15.6** |
| **Financials** | **12.8** |
| **Consumer Discretionary** | **9.6** |
| **Industrials** | **8.5** |
| **Communication Services** | **7.2** |
| **Consumer Staples** | **7.1** |
| **Energy** | **5.1** |
| **Utilities** | **3.1** |
| **Materials** | **2.7** |

---

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MetLife Stock Index Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.26% | $1000.00 | $1021.90 | $1.33 |
|  | Hypothetical\* | 0.26% | $1000.00 | $1023.90 | $1.33 |
|  Class B (a) | Actual | 0.51% | $1000.00 | $1020.50 | $2.60 |
|  | Hypothetical\* | 0.51% | $1000.00 | $1022.64 | $2.60 |
|  Class D (a) | Actual | 0.36% | $1000.00 | $1021.40 | $1.83 |
|  | Hypothetical\* | 0.36% | $1000.00 | $1023.39 | $1.84 |
|  Class E (a) | Actual | 0.41% | $1000.00 | $1020.90 | $2.09 |
|  | Hypothetical\* | 0.41% | $1000.00 | $1023.14 | $2.09 |
|  Class G (a) | Actual | 0.56% | $1000.00 | $1020.40 | $2.85 |
|  | Hypothetical\* | 0.56% | $1000.00 | $1022.38 | $2.85 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—98.5% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.9%** | | |
|  Boeing Co. (The) (a) (b) | 112760 | $21479652 |
|  General Dynamics Corp. | 45313 | 11242609 |
|  Howmet Aerospace, Inc. | 74110 | 2920675 |
|  Huntington Ingalls Industries, Inc. | 8032 | 1852822 |
|  L3Harris Technologies, Inc. | 38324 | 7979440 |
|  Lockheed Martin Corp. | 46947 | 22839246 |
|  Northrop Grumman Corp. | 29120 | 15888163 |
|  Raytheon Technologies Corp. | 295888 | 29861017 |
|  Textron, Inc. | 42020 | 2975016 |
|  TransDigm Group, Inc. | 10397 | 6546471 |
|  |  | 123585111 |
| **Air Freight & Logistics—0.6%** |  |  |
|  C.H. Robinson Worldwide, Inc. (b) | 23692 | 2169239 |
|  Expeditors International of Washington, Inc. (b) | 32030 | 3328558 |
|  FedEx Corp. (b) | 48186 | 8345815 |
|  United Parcel Service, Inc. - Class B | 146895 | 25536227 |
|  |  | 39379839 |
| **Airlines—0.2%** |  |  |
|  Alaska Air Group, Inc. (a) (b) | 25529 | 1096215 |
|  American Airlines Group, Inc. (a) (b) | 130809 | 1663891 |
|  Delta Air Lines, Inc. (a) | 129055 | 4240747 |
|  Southwest Airlines Co. (a) | 119508 | 4023834 |
|  United Airlines Holdings, Inc. (a) | 65802 | 2480736 |
|  |  | 13505423 |
| **Auto Components—0.1%** |  |  |
|  Aptiv plc (a) | 54535 | 5078845 |
|  BorgWarner, Inc. (b) | 47129 | 1896942 |
|  |  | 6975787 |
| **Automobiles—1.3%** |  |  |
|  Ford Motor Co. | 794968 | 9245478 |
|  General Motors Co. | 285952 | 9619425 |
|  Tesla, Inc. (a) | 540243 | 66547133 |
|  |  | 85412036 |
| **Banks—3.8%** |  |  |
|  Bank of America Corp. | 1404809 | 46527274 |
|  Citigroup, Inc. | 389842 | 17632554 |
|  Citizens Financial Group, Inc. | 99126 | 3902591 |
|  Comerica, Inc. | 26357 | 1761966 |
|  Fifth Third Bancorp (b) | 138155 | 4532866 |
|  First Republic Bank | 36818 | 4487746 |
|  Huntington Bancshares, Inc. | 290387 | 4094457 |
|  JPMorgan Chase & Co. | 590384 | 79170494 |
|  KeyCorp | 187784 | 3271197 |
|  M&T Bank Corp. | 34743 | 5039820 |
|  PNC Financial Services Group, Inc. (The) | 81178 | 12821253 |
|  Regions Financial Corp. (b) | 188081 | 4055026 |
|  Signature Bank | 12665 | 1459261 |
|  SVB Financial Group (a) | 11896 | 2737745 |
|  Truist Financial Corp. | 267046 | 11490989 |
|  U.S. Bancorp | 272145 | 11868244 |
| **Banks—(Continued)** |  |  |
|  Wells Fargo & Co. | 766960 | 31667778 |
|  Zions Bancorp N.A. (b) | 30114 | 1480404 |
|  |  | 248001665 |
| **Beverages—1.9%** |  |  |
|  Brown-Forman Corp. - Class B | 36804 | 2417287 |
|  Coca-Cola Co. (The) | 783378 | 49830675 |
|  Constellation Brands, Inc. - Class A | 32673 | 7571968 |
|  Keurig Dr Pepper, Inc. | 171034 | 6099072 |
|  Molson Coors Beverage Co. - Class B (b) | 37839 | 1949465 |
|  Monster Beverage Corp. (a) | 76660 | 7783290 |
|  PepsiCo, Inc. | 277300 | 50097018 |
|  |  | 125748775 |
| **Biotechnology—2.4%** |  |  |
|  AbbVie, Inc. | 355953 | 57525564 |
|  Amgen, Inc. (b) | 107397 | 28206748 |
|  Biogen, Inc. (a) | 28984 | 8026249 |
|  Gilead Sciences, Inc. | 252449 | 21672747 |
|  Incyte Corp. (a) | 37166 | 2985173 |
|  Moderna, Inc. (a) (b) | 66501 | 11944910 |
|  Regeneron Pharmaceuticals, Inc. (a) | 21554 | 15550995 |
|  Vertex Pharmaceuticals, Inc. (a) | 51666 | 14920108 |
|  |  | 160832494 |
| **Building Products—0.4%** |  |  |
|  A.O. Smith Corp. (b) | 25535 | 1461623 |
|  Allegion plc (b) | 17681 | 1861102 |
|  Carrier Global Corp. (b) | 168319 | 6943159 |
|  Johnson Controls International plc | 138618 | 8871552 |
|  Masco Corp. (b) | 45393 | 2118491 |
|  Trane Technologies plc | 46355 | 7791812 |
|  |  | 29047739 |
| **Capital Markets—3.1%** |  |  |
|  Ameriprise Financial, Inc. | 21419 | 6669234 |
|  Bank of New York Mellon Corp. (The) | 148045 | 6739008 |
|  BlackRock, Inc. | 30231 | 21422594 |
|  Cboe Global Markets, Inc. | 21351 | 2678910 |
|  Charles Schwab Corp. (The) | 307008 | 25561486 |
|  CME Group, Inc. | 72404 | 12175457 |
|  FactSet Research Systems, Inc. | 7668 | 3076478 |
|  Franklin Resources, Inc. (b) | 57175 | 1508276 |
|  Goldman Sachs Group, Inc. (The) | 68159 | 23404437 |
|  Intercontinental Exchange, Inc. | 112423 | 11533476 |
|  Invesco, Ltd. (b) | 91540 | 1646805 |
|  MarketAxess Holdings, Inc. (b) | 7576 | 2112871 |
|  Moody's Corp. | 31712 | 8835597 |
|  Morgan Stanley (b) | 265339 | 22559122 |
|  MSCI, Inc. | 16094 | 7486446 |
|  Nasdaq, Inc. | 68229 | 4185849 |
|  Northern Trust Corp. | 41949 | 3712067 |
|  Raymond James Financial, Inc. (b) | 38965 | 4163410 |
|  S&P Global, Inc. | 67025 | 22449353 |
|  State Street Corp. | 73856 | 5729010 |

---

*See accompanying notes to financial statements.* 

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Capital Markets—(Continued)** | | |
| T. Rowe Price Group, Inc. (b) | 44978 | $4905301 |
|  |  | 202555187 |
| **Chemicals—1.8%** |  |  |
|  Air Products & Chemicals, Inc. | 44643 | 13761651 |
|  Albemarle Corp. | 23580 | 5113559 |
|  Celanese Corp. | 20078 | 2052775 |
|  CF Industries Holdings, Inc. | 39488 | 3364378 |
|  Corteva, Inc. | 143810 | 8453152 |
|  Dow, Inc. | 141649 | 7137693 |
|  DuPont de Nemours, Inc. (b) | 99991 | 6862382 |
|  Eastman Chemical Co. | 24151 | 1966857 |
|  Ecolab, Inc. | 49876 | 7259951 |
|  FMC Corp. | 25354 | 3164179 |
|  International Flavors & Fragrances, Inc. (b) | 51317 | 5380074 |
|  Linde plc | 99507 | 32457193 |
|  LyondellBasell Industries NV - Class A (b) | 51121 | 4244577 |
|  Mosaic Co. (The) | 68530 | 3006411 |
|  PPG Industries, Inc. | 47305 | 5948131 |
|  Sherwin-Williams Co. (The) | 47465 | 11264868 |
|  |  | 121437831 |
| **Commercial Services & Supplies—0.5%** |  |  |
|  Cintas Corp. | 17373 | 7845994 |
|  Copart, Inc. (a) | 86251 | 5251823 |
|  Republic Services, Inc. | 41342 | 5332705 |
|  Rollins, Inc. | 46587 | 1702289 |
|  Waste Management, Inc. | 75183 | 11794709 |
|  |  | 31927520 |
| **Communications Equipment—0.9%** |  |  |
|  Arista Networks, Inc. (a) | 49818 | 6045414 |
|  Cisco Systems, Inc. | 826433 | 39371268 |
|  F5, Inc. (a) | 12048 | 1729009 |
|  Juniper Networks, Inc. | 65325 | 2087787 |
|  Motorola Solutions, Inc. | 33654 | 8672972 |
|  |  | 57906450 |
| **Construction & Engineering—0.1%** |  |  |
|  Quanta Services, Inc. (b) | 28762 | 4098585 |
| **Construction Materials—0.1%** |  |  |
|  Martin Marietta Materials, Inc. | 12498 | 4223949 |
|  Vulcan Materials Co. | 26751 | 4684368 |
|  |  | 8908317 |
| **Consumer Finance—0.5%** |  |  |
|  American Express Co. | 120320 | 17777280 |
|  Capital One Financial Corp. | 76826 | 7141745 |
|  Discover Financial Services | 54993 | 5379965 |
|  Synchrony Financial | 90683 | 2979844 |
|  |  | 33278834 |
| **Containers & Packaging—0.3%** |  |  |
|  AMCOR plc | 299704 | 3569474 |
|  Avery Dennison Corp. | 16297 | 2949757 |
|  Ball Corp. (b) | 63184 | 3231230 |
|  International Paper Co. | 71587 | 2479058 |
|  Packaging Corp. of America | 18625 | 2382324 |
|  Sealed Air Corp. | 29116 | 1452306 |
|  Westrock Co. | 51184 | 1799629 |
|  |  | 17863778 |
| **Distributors—0.2%** |  |  |
|  Genuine Parts Co. | 28372 | 4922826 |
|  LKQ Corp. | 51087 | 2728556 |
|  Pool Corp. | 7860 | 2376314 |
|  |  | 10027696 |
| **Diversified Financial Services—1.7%** |  |  |
|  Berkshire Hathaway, Inc. - Class B (a) | 362643 | 112020423 |
| **Diversified Telecommunication Services—0.9%** |  |  |
|  AT&T, Inc. | 1434494 | 26409034 |
|  Lumen Technologies, Inc. (b) | 191577 | 1000032 |
|  Verizon Communications, Inc. | 845322 | 33305687 |
|  |  | 60714753 |
| **Electric Utilities—2.1%** |  |  |
|  Alliant Energy Corp. | 50524 | 2789430 |
|  American Electric Power Co., Inc. (b) | 103428 | 9820489 |
|  Constellation Energy Corp. | 65820 | 5674342 |
|  Duke Energy Corp. | 154995 | 15962935 |
|  Edison International (b) | 76862 | 4889961 |
|  Entergy Corp. | 40956 | 4607550 |
|  Evergy, Inc. | 46200 | 2907366 |
|  Eversource Energy | 70105 | 5877603 |
|  Exelon Corp. | 200016 | 8646692 |
|  FirstEnergy Corp. | 109326 | 4585132 |
|  NextEra Energy, Inc. | 399968 | 33437325 |
|  NRG Energy, Inc. | 46370 | 1475493 |
|  PG&E Corp. (a)(b) | 324061 | 5269232 |
|  Pinnacle West Capital Corp. | 22772 | 1731583 |
|  PPL Corp. | 148203 | 4330492 |
|  Southern Co. (The) | 219123 | 15647573 |
|  Xcel Energy, Inc. | 110147 | 7722406 |
|  |  | 135375604 |
| **Electrical Equipment—0.6%** |  |  |
|  AMETEK, Inc. | 46224 | 6458417 |
|  Eaton Corp. plc | 80047 | 12563377 |
|  Emerson Electric Co. | 119014 | 11432485 |
|  Generac Holdings, Inc. (a) (b) | 12752 | 1283616 |
|  Rockwell Automation, Inc. | 23115 | 5953731 |
|  |  | 37691626 |
| **Electronic Equipment, Instruments & Components—0.6%** | **Electronic Equipment, Instruments & Components—0.6%** |  |
|  Amphenol Corp. - Class A | 119778 | 9119897 |
|  CDW Corp. | 27251 | 4866483 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** | |
|  Corning, Inc. (b) | 153217 | $4893751 |
|  Keysight Technologies, Inc. (a) | 35987 | 6156296 |
|  TE Connectivity, Ltd. | 64022 | 7349726 |
|  Teledyne Technologies, Inc. (a) | 9434 | 3772751 |
|  Trimble, Inc. (a)(b) | 49639 | 2509748 |
|  Zebra Technologies Corp. - Class A (a) | 10392 | 2664613 |
|  |  | 41333265 |
| **Energy Equipment & Services—0.4%** |  |  |
|  Baker Hughes Co. (b) | 201571 | 5952392 |
|  Halliburton Co. | 182768 | 7191921 |
|  Schlumberger, Ltd. | 285409 | 15257965 |
|  |  | 28402278 |
| **Entertainment—1.3%** |  |  |
|  Activision Blizzard, Inc. | 143346 | 10973136 |
|  Electronic Arts, Inc. (b) | 52790 | 6449882 |
|  Live Nation Entertainment, Inc. (a) (b) | 28750 | 2005025 |
|  Netflix, Inc. (a) | 89572 | 26412991 |
|  Take-Two Interactive Software, Inc. (a) | 31751 | 3306232 |
|  Walt Disney Co. (The) (a) | 366937 | 31879487 |
|  Warner Bros Discovery, Inc. (a) (b) | 444787 | 4216581 |
|  |  | 85243334 |
| **Equity Real Estate Investment Trusts—2.6%** |  |  |
|  Alexandria Real Estate Equities, Inc. (b) | 30054 | 4377966 |
|  American Tower Corp. | 93715 | 19854460 |
|  AvalonBay Communities, Inc. | 28158 | 4548080 |
|  Boston Properties, Inc. | 28711 | 1940289 |
|  Camden Property Trust | 21441 | 2398819 |
|  Crown Castle, Inc. | 87162 | 11822654 |
|  Digital Realty Trust, Inc. (b) | 57871 | 5802725 |
|  Equinix, Inc. (b) | 18626 | 12200589 |
|  Equity Residential | 68459 | 4039081 |
|  Essex Property Trust, Inc. | 13033 | 2761953 |
|  Extra Space Storage, Inc. | 26955 | 3967237 |
|  Federal Realty Investment Trust | 14710 | 1486298 |
|  Healthpeak Properties, Inc. | 108193 | 2712398 |
|  Host Hotels & Resorts, Inc. | 143918 | 2309884 |
|  Invitation Homes, Inc. (b) | 116909 | 3465183 |
|  Iron Mountain, Inc. (b) | 58513 | 2916873 |
|  Kimco Realty Corp. (b) | 124481 | 2636508 |
|  Mid-America Apartment Communities, Inc. | 23243 | 3648919 |
|  Prologis, Inc. | 185793 | 20944445 |
|  Public Storage | 31817 | 8914805 |
|  Realty Income Corp. (b) | 126231 | 8006832 |
|  Regency Centers Corp. (b) | 30998 | 1937375 |
|  SBA Communications Corp. | 21731 | 6091417 |
|  Simon Property Group, Inc. | 65806 | 7730889 |
|  UDR, Inc. | 61592 | 2385458 |
|  Ventas, Inc. | 80453 | 3624408 |
|  VICI Properties, Inc. | 193848 | 6280675 |
|  Vornado Realty Trust (b) | 32423 | 674723 |
|  Welltower, Inc. (b) | 95107 | 6234264 |
|  Weyerhaeuser Co. (b) | 148122 | 4591782 |
|  |  | 170306989 |
| **Food & Staples Retailing—1.5%** |  |  |
|  Costco Wholesale Corp. | 89086 | 40667759 |
|  Kroger Co. (The) | 131107 | 5844750 |
|  Sysco Corp. | 102000 | 7797900 |
|  Walgreens Boots Alliance, Inc. (b) | 144474 | 5397548 |
|  Walmart, Inc. | 284082 | 40279987 |
|  |  | 99987944 |
| **Food Products—1.2%** |  |  |
|  Archer-Daniels-Midland Co. (b) | 110567 | 10266146 |
|  Campbell Soup Co. (b) | 40423 | 2294005 |
|  Conagra Brands, Inc. | 96462 | 3733079 |
|  General Mills, Inc. (b) | 119464 | 10017056 |
|  Hershey Co. (The) | 29581 | 6850072 |
|  Hormel Foods Corp. | 58266 | 2654016 |
|  J.M. Smucker Co. (The) (b) | 21447 | 3398492 |
|  Kellogg Co. | 51518 | 3670142 |
|  Kraft Heinz Co. (The) (b) | 160256 | 6524022 |
|  Lamb Weston Holdings, Inc. | 28949 | 2586883 |
|  McCormick & Co., Inc. (b) | 50439 | 4180889 |
|  Mondelez International, Inc. - Class A | 274866 | 18319819 |
|  Tyson Foods, Inc. - Class A | 58292 | 3628677 |
|  |  | 78123298 |
| **Gas Utilities—0.0%** |  |  |
|  Atmos Energy Corp. (b) | 28156 | 3155443 |
| **Health Care Equipment & Supplies—2.8%** |  |  |
|  Abbott Laboratories | 350939 | 38529593 |
|  Align Technology, Inc. (a) | 14622 | 3083780 |
|  Baxter International, Inc. (b) | 101467 | 5171773 |
|  Becton Dickinson & Co. | 57403 | 14597583 |
|  Boston Scientific Corp. (a) | 288289 | 13339132 |
|  Cooper Cos., Inc. (The) | 9932 | 3284214 |
|  Dentsply Sirona, Inc. (b) | 43256 | 1377271 |
|  DexCom, Inc. (a) | 77744 | 8803731 |
|  Edwards Lifesciences Corp. (a) | 124440 | 9284468 |
|  Hologic, Inc. (a) | 50249 | 3759128 |
|  IDEXX Laboratories, Inc. (a) (b) | 16669 | 6800285 |
|  Intuitive Surgical, Inc. (a) | 71128 | 18873815 |
|  Medtronic plc | 267526 | 20792121 |
|  ResMed, Inc. | 29484 | 6136505 |
|  STERIS plc (b) | 20092 | 3710791 |
|  Stryker Corp. | 67790 | 16573977 |
|  Teleflex, Inc. (b) | 9441 | 2356757 |
|  Zimmer Biomet Holdings, Inc. | 42238 | 5385345 |
|  |  | 181860269 |
| **Health Care Providers & Services—3.6%** |  |  |
|  AmerisourceBergen Corp. | 32597 | 5401649 |
|  Cardinal Health, Inc. (b) | 52761 | 4055738 |
|  Centene Corp. (a) | 113974 | 9347008 |
|  Cigna Corp. | 61538 | 20390001 |
|  CVS Health Corp. | 264470 | 24645959 |
|  DaVita, Inc. (a) | 11062 | 825999 |
|  Elevance Health, Inc. | 48071 | 24658981 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares** | **Value** | **Value** |
| **Health Care Providers & Services—(Continued)** | | | |
|  HCA Healthcare, Inc. | 42678 | $| 10241013 |
|  Henry Schein, Inc. (a) | 27282 |  | 2179013 |
|  Humana, Inc. | 25482 |  | 13051626 |
|  Laboratory Corp. of America Holdings | 17833 |  | 4199315 |
|  McKesson Corp. (b) | 28540 |  | 10705925 |
|  Molina Healthcare, Inc. (a) | 11755 |  | 3881736 |
|  Quest Diagnostics, Inc. | 22923 |  | 3586074 |
|  UnitedHealth Group, Inc. | 188062 |  | 99706711 |
|  Universal Health Services, Inc. - Class B | 12913 |  | 1819313 |
|  |  |  | 238696061 |
| **Hotels, Restaurants & Leisure—2.0%** |  |  |  |
|  Booking Holdings, Inc. (a) | 7808 |  | 15735306 |
|  Caesars Entertainment, Inc. (a) | 43186 |  | 1796538 |
|  Carnival Corp. (a)(b) | 201565 |  | 1624614 |
|  Chipotle Mexican Grill, Inc. (a) | 5580 |  | 7742194 |
|  Darden Restaurants, Inc. | 24633 |  | 3407483 |
|  Domino's Pizza, Inc. | 7125 |  | 2468100 |
|  Expedia Group, Inc. (a) | 30305 |  | 2654718 |
|  Hilton Worldwide Holdings, Inc. | 54436 |  | 6878533 |
|  Las Vegas Sands Corp. (a) (b) | 66137 |  | 3179205 |
|  Marriott International, Inc. - Class A | 54155 |  | 8063138 |
|  McDonald's Corp. | 147420 |  | 38849593 |
|  MGM Resorts International | 64154 |  | 2151084 |
|  Norwegian Cruise Line Holdings, Ltd. (a) (b) | 84816 |  | 1038148 |
|  Royal Caribbean Cruises, Ltd. (a) (b) | 44171 |  | 2183372 |
|  Starbucks Corp. (b) | 231044 |  | 22919565 |
|  Wynn Resorts, Ltd. (a) | 20754 |  | 1711582 |
|  Yum! Brands, Inc. | 56697 |  | 7261752 |
|  |  |  | 129664925 |
| **Household Durables—0.3%** |  |  |  |
|  DR Horton, Inc. (b) | 62998 |  | 5615642 |
|  Garmin, Ltd. | 30861 |  | 2848162 |
|  Lennar Corp. - Class A (b) | 51278 |  | 4640659 |
|  Mohawk Industries, Inc. (a) | 10613 |  | 1084861 |
|  Newell Brands, Inc. (b) | 75755 |  | 990875 |
|  NVR, Inc. (a) | 605 |  | 2790611 |
|  PulteGroup, Inc. | 45854 |  | 2087732 |
|  Whirlpool Corp. (b) | 10965 |  | 1551109 |
|  |  |  | 21609651 |
| **Household Products—1.6%** |  |  |  |
|  Church & Dwight Co., Inc. | 49084 |  | 3956661 |
|  Clorox Co. (The) (b) | 24834 |  | 3484955 |
|  Colgate-Palmolive Co. | 168108 |  | 13245229 |
|  Kimberly-Clark Corp. (b) | 67929 |  | 9221362 |
|  Procter & Gamble Co. (The) | 476964 |  | 72288664 |
|  |  |  | 102196871 |
| **Independent Power and Renewable Electricity Producers—0.1%** | **Independent Power and Renewable Electricity Producers—0.1%** | **Independent Power and Renewable Electricity Producers—0.1%** | **Independent Power and Renewable Electricity Producers—0.1%** |
|  AES Corp. (The) | 134442 |  | 3866552 |
| **Industrial Conglomerates—0.9%** |  |  |  |
|  3M Co. | 111254 |  | 13341580 |
| **Industrial Conglomerates—(Continued)** |  |  |  |
|  General Electric Co. | 219927 |  | 18427683 |
|  Honeywell International, Inc. | 135322 |  | 28999505 |
|  |  |  | 60768768 |
| **Insurance—2.4%** |  |  |  |
|  Aflac, Inc. | 113887 |  | 8193031 |
|  Allstate Corp. (The) (b) | 53380 |  | 7238328 |
|  American International Group, Inc. | 149544 |  | 9457162 |
|  Aon plc - Class A (b) | 41635 |  | 12496329 |
|  Arch Capital Group, Ltd. (a) | 74446 |  | 4673720 |
|  Arthur J. Gallagher & Co. (b) | 42437 |  | 8001072 |
|  Assurant, Inc. | 10633 |  | 1329763 |
|  Brown & Brown, Inc. | 47314 |  | 2695478 |
|  Chubb, Ltd. | 83540 |  | 18428924 |
|  Cincinnati Financial Corp. (b) | 31637 |  | 3239312 |
|  Everest Re Group, Ltd. | 7883 |  | 2611401 |
|  Globe Life, Inc. | 18207 |  | 2194854 |
|  Hartford Financial Services Group, Inc. (The) | 64025 |  | 4855016 |
|  Lincoln National Corp. (b) | 30993 |  | 952105 |
|  Loews Corp. | 39664 |  | 2313601 |
|  Marsh & McLennan Cos., Inc. | 99835 |  | 16520696 |
|  MetLife, Inc. (c) | 132654 |  | 9600170 |
|  Principal Financial Group, Inc. (b) | 45801 |  | 3843620 |
|  Progressive Corp. (The) | 117760 |  | 15274650 |
|  Prudential Financial, Inc. | 74069 |  | 7366903 |
|  Travelers Cos., Inc. (The) | 47169 |  | 8843716 |
|  W.R. Berkley Corp. | 41144 |  | 2985820 |
|  Willis Towers Watson plc (b) | 21786 |  | 5328420 |
|  |  |  | 158444091 |
| **Interactive Media & Services—3.9%** |  |  |  |
|  Alphabet, Inc. - Class A (a) | 1202221 |  | 106071959 |
|  Alphabet, Inc. - Class C (a) (d) | 1065720 |  | 94561336 |
|  Match Group, Inc. (a) | 56217 |  | 2332443 |
|  Meta Platforms, Inc. - Class A (a) | 452603 |  | 54466245 |
|  |  |  | 257431983 |
| **Internet & Direct Marketing Retail—2.4%** |  |  |  |
|  Amazon.com, Inc. (a) | 1786413 |  | 150058692 |
|  eBay, Inc. | 109224 |  | 4529519 |
|  Etsy, Inc. (a) (b) | 25298 |  | 3030195 |
|  |  |  | 157618406 |
| **IT Services—4.4%** |  |  |  |
|  Accenture plc - Class A | 126820 |  | 33840649 |
|  Akamai Technologies, Inc. (a) (b) | 31649 |  | 2668011 |
|  Automatic Data Processing, Inc. | 83495 |  | 19943616 |
|  Broadridge Financial Solutions, Inc. | 23681 |  | 3176333 |
|  Cognizant Technology Solutions Corp. - Class A | 103439 |  | 5915676 |
|  DXC Technology Co. (a) | 46306 |  | 1227109 |
|  EPAM Systems, Inc. (a)(b) | 11576 |  | 3793918 |
|  Fidelity National Information Services, Inc. | 119432 |  | 8103461 |
|  Fiserv, Inc. (a) | 127815 |  | 12918262 |
|  FleetCor Technologies, Inc. (a) | 14844 |  | 2726546 |
|  Gartner, Inc. (a) | 15906 |  | 5346643 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **IT Services—(Continued)** | | |
|  Global Payments, Inc. (b) | 54425 | $5405491 |
|  International Business Machines Corp. | 181979 | 25639021 |
|  Jack Henry & Associates, Inc. | 14683 | 2577747 |
|  MasterCard, Inc. - Class A (b) | 170860 | 59413148 |
|  Paychex, Inc. | 64560 | 7460554 |
|  PayPal Holdings, Inc. (a) | 229460 | 16342141 |
|  VeriSign, Inc. (a) | 18564 | 3813788 |
|  Visa, Inc. - Class A (b) | 329089 | 68371531 |
|  |  | 288683645 |
| **Leisure Products—0.0%** |  |  |
|  Hasbro, Inc. | 26131 | 1594252 |
| **Life Sciences Tools & Services—1.9%** |  |  |
|  Agilent Technologies, Inc. | 59586 | 8917045 |
|  Bio-Rad Laboratories, Inc. - Class A (a) | 4334 | 1822404 |
|  Bio-Techne Corp. | 31594 | 2618511 |
|  Charles River Laboratories International, Inc. (a) | 10241 | 2231514 |
|  Danaher Corp. | 131869 | 35000670 |
|  Illumina, Inc. (a) | 31661 | 6401854 |
|  IQVIA Holdings, Inc. (a) | 37385 | 7659813 |
|  Mettler-Toledo International, Inc. (a) | 4488 | 6487180 |
|  PerkinElmer, Inc. | 25406 | 3562429 |
|  Thermo Fisher Scientific, Inc. | 78940 | 43471468 |
|  Waters Corp. (a) | 11958 | 4096572 |
|  West Pharmaceutical Services, Inc. | 14901 | 3506950 |
|  |  | 125776410 |
| **Machinery—1.9%** |  |  |
|  Caterpillar, Inc. | 104746 | 25092952 |
|  Cummins, Inc. | 28384 | 6877159 |
|  Deere & Co. | 55282 | 23702710 |
|  Dover Corp. | 28250 | 3825333 |
|  Fortive Corp. | 71213 | 4575435 |
|  IDEX Corp. (b) | 15180 | 3466049 |
|  Illinois Tool Works, Inc. (b) | 56265 | 12395180 |
|  Ingersoll Rand, Inc. | 81501 | 4258427 |
|  Nordson Corp. | 10824 | 2573081 |
|  Otis Worldwide Corp. | 83848 | 6566137 |
|  PACCAR, Inc. (b) | 69997 | 6927603 |
|  Parker-Hannifin Corp. | 25845 | 7520895 |
|  Pentair plc | 33109 | 1489243 |
|  Snap-on, Inc. (b) | 10699 | 2444615 |
|  Stanley Black & Decker, Inc. | 29777 | 2236848 |
|  Westinghouse Air Brake Technologies Corp. | 36605 | 3653545 |
|  Xylem, Inc. (b) | 36274 | 4010816 |
|  |  | 121616028 |
| **Media—0.8%** |  |  |
|  Charter Communications, Inc. - Class A (a) | 21620 | 7331342 |
|  Comcast Corp. - Class A | 868297 | 30364346 |
|  DISH Network Corp. - Class A (a)(b) | 50591 | 710298 |
|  Fox Corp. - Class A (b) | 60880 | 1848926 |
|  Fox Corp. - Class B | 28043 | 797823 |
|  Interpublic Group of Cos., Inc. (The) (b) | 78200 | 2604842 |
| **Media—(Continued)** |  |  |
|  News Corp. - Class A | 76958 | 1400636 |
|  News Corp. - Class B (b) | 23730 | 437581 |
|  Omnicom Group, Inc. | 41043 | 3347877 |
|  Paramount Global - Class B (b) | 101650 | 1715852 |
|  |  | 50559523 |
| **Metals & Mining—0.4%** |  |  |
|  Freeport-McMoRan, Inc. | 287689 | 10932182 |
|  Newmont Corp. | 159760 | 7540672 |
|  Nucor Corp. | 51636 | 6806141 |
|  Steel Dynamics, Inc. | 33571 | 3279887 |
|  |  | 28558882 |
| **Multi-Utilities—0.9%** |  |  |
|  Ameren Corp. | 52034 | 4626863 |
|  CenterPoint Energy, Inc. | 126710 | 3800033 |
|  CMS Energy Corp. | 58420 | 3699738 |
|  Consolidated Edison, Inc. | 71425 | 6807517 |
|  Dominion Energy, Inc. | 167718 | 10284468 |
|  DTE Energy Co. | 38995 | 4583082 |
|  NiSource, Inc. | 81745 | 2241448 |
|  Public Service Enterprise Group, Inc. | 100426 | 6153101 |
|  Sempra Energy | 63268 | 9777437 |
|  WEC Energy Group, Inc. | 63489 | 5952729 |
|  |  | 57926416 |
| **Multiline Retail—0.5%** |  |  |
|  Dollar General Corp. | 45402 | 11180242 |
|  Dollar Tree, Inc. (a) | 42369 | 5992671 |
|  Target Corp. | 92640 | 13807066 |
|  |  | 30979979 |
| **Oil, Gas & Consumable Fuels—4.7%** |  |  |
|  APA Corp. | 64712 | 3020756 |
|  Chevron Corp. | 358059 | 64268010 |
|  ConocoPhillips | 250804 | 29594872 |
|  Coterra Energy, Inc. (b) | 158699 | 3899234 |
|  Devon Energy Corp. | 131574 | 8093117 |
|  Diamondback Energy, Inc. | 35424 | 4845295 |
|  EOG Resources, Inc. | 118227 | 15312761 |
|  EQT Corp. (b) | 73877 | 2499259 |
|  Exxon Mobil Corp. | 828913 | 91429104 |
|  Hess Corp. | 55849 | 7920505 |
|  Kinder Morgan, Inc. (b) | 398126 | 7198118 |
|  Marathon Oil Corp. | 127823 | 3460169 |
|  Marathon Petroleum Corp. | 94330 | 10979069 |
|  Occidental Petroleum Corp. | 146354 | 9218838 |
|  ONEOK, Inc. (b) | 89961 | 5910438 |
|  Phillips 66 | 95129 | 9901026 |
|  Pioneer Natural Resources Co. | 47823 | 10922295 |
|  Targa Resources Corp. | 45563 | 3348880 |
|  Valero Energy Corp. | 77596 | 9843829 |
|  Williams Cos., Inc. (The) (b) | 245154 | 8065567 |
|  |  | 309731142 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Personal Products—0.2%** | | |
|  Estee Lauder Cos., Inc. (The) - Class A | 46549 | $11549272 |
| **Pharmaceuticals—4.8%** |  |  |
|  Bristol-Myers Squibb Co. | 427945 | 30790643 |
|  Catalent, Inc. (a) | 36222 | 1630352 |
|  Eli Lilly and Co. | 158736 | 58071978 |
|  Johnson & Johnson | 526233 | 92959060 |
|  Merck & Co., Inc. | 510314 | 56619338 |
|  Organon & Co. (b) | 51197 | 1429932 |
|  Pfizer, Inc. | 1129825 | 57892233 |
|  Viatris, Inc. | 244084 | 2716655 |
|  Zoetis, Inc. | 93809 | 13747709 |
|  |  | 315857900 |
| **Professional Services—0.4%** |  |  |
|  CoStar Group, Inc. (a) (b) | 81856 | 6325832 |
|  Equifax, Inc. (b) | 24645 | 4790002 |
|  Jacobs Solutions, Inc. | 25684 | 3083878 |
|  Leidos Holdings, Inc. | 27512 | 2893987 |
|  Robert Half International, Inc. (b) | 21838 | 1612300 |
|  Verisk Analytics, Inc. | 31477 | 5553172 |
|  |  | 24259171 |
| **Real Estate Management & Development—0.1%** |  |  |
|  CBRE Group, Inc. - Class A (a) | 63592 | 4894040 |
| **Road & Rail—0.9%** |  |  |
|  CSX Corp. | 423164 | 13109621 |
|  J.B. Hunt Transport Services, Inc. | 16672 | 2906930 |
|  Norfolk Southern Corp. | 46598 | 11482679 |
|  Old Dominion Freight Line, Inc. | 18235 | 5174728 |
|  Union Pacific Corp. | 123745 | 25623877 |
|  |  | 58297835 |
| **Semiconductors & Semiconductor Equipment—5.0%** |  |  |
|  Advanced Micro Devices, Inc. (a) | 324528 | 21019679 |
|  Analog Devices, Inc. | 103525 | 16981206 |
|  Applied Materials, Inc. | 173159 | 16862223 |
|  Broadcom, Inc. (b) | 81519 | 45579718 |
|  Enphase Energy, Inc. (a) | 27358 | 7248776 |
|  First Solar, Inc. (a) | 19955 | 2989059 |
|  Intel Corp. | 830666 | 21954502 |
|  KLA Corp. | 28525 | 10754781 |
|  Lam Research Corp. | 27450 | 11537235 |
|  Microchip Technology, Inc. | 110703 | 7776886 |
|  Micron Technology, Inc. | 218821 | 10936674 |
|  Monolithic Power Systems, Inc. (b) | 8976 | 3174003 |
|  NVIDIA Corp. | 501177 | 73242007 |
|  NXP Semiconductors NV | 52158 | 8242529 |
|  ON Semiconductor Corp. (a) (b) | 87036 | 5428435 |
|  Qorvo, Inc. (a) | 20407 | 1849690 |
|  QUALCOMM, Inc. | 225630 | 24805762 |
|  Skyworks Solutions, Inc. | 32293 | 2942861 |
|  SolarEdge Technologies, Inc. (a) | 11250 | 3186788 |
|  Teradyne, Inc. (b) | 31349 | 2738335 |
| **Semiconductors & Semiconductor Equipment—(Continued)** | **Semiconductors & Semiconductor Equipment—(Continued)** | **Semiconductors & Semiconductor Equipment—(Continued)** |
|  Texas Instruments, Inc. | 182672 | 30181068 |
|  |  | 329432217 |
| **Software—8.2%** |  |  |
|  Adobe, Inc. (a) | 93573 | 31490122 |
|  ANSYS, Inc. (a) | 17534 | 4236039 |
|  Autodesk, Inc. (a) | 43447 | 8118941 |
|  Cadence Design Systems, Inc. (a) | 55213 | 8869416 |
|  Ceridian HCM Holding, Inc. (a) | 30914 | 1983133 |
|  Fortinet, Inc. (a) | 130512 | 6380732 |
|  Gen Digital, Inc. | 116681 | 2500474 |
|  Intuit, Inc. | 56734 | 22082007 |
|  Microsoft Corp. | 1500407 | 359827607 |
|  Oracle Corp. | 309323 | 25284062 |
|  Paycom Software, Inc. (a)(b) | 9784 | 3036073 |
|  PTC, Inc. (a) | 21278 | 2554211 |
|  Roper Technologies, Inc. | 21346 | 9223393 |
|  Salesforce.com, Inc. (a) | 201276 | 26687185 |
|  ServiceNow, Inc. (a) | 40658 | 15786282 |
|  Synopsys, Inc. (a) | 30777 | 9826788 |
|  Tyler Technologies, Inc. (a)(b) | 8381 | 2702118 |
|  |  | 540588583 |
| **Specialty Retail—2.4%** |  |  |
|  Advance Auto Parts, Inc. | 12100 | 1779063 |
|  AutoZone, Inc. (a) | 3821 | 9423274 |
|  Bath & Body Works, Inc. | 45966 | 1937007 |
|  Best Buy Co., Inc. | 40328 | 3234709 |
|  CarMax, Inc. (a)(b) | 31804 | 1936545 |
|  Home Depot, Inc. (The) | 206052 | 65083585 |
|  Lowe's Cos., Inc. | 124932 | 24891451 |
|  O'Reilly Automotive, Inc. (a) | 12595 | 10630558 |
|  Ross Stores, Inc. | 69855 | 8108070 |
|  TJX Cos., Inc. (The) | 233692 | 18601883 |
|  Tractor Supply Co. | 22234 | 5001983 |
|  Ulta Beauty, Inc. (a) | 10310 | 4836112 |
|  |  | 155464240 |
| **Technology Hardware, Storage & Peripherals—6.2%** |  |  |
|  Apple, Inc. | 3009807 | 391064224 |
|  Hewlett Packard Enterprise Co. | 258982 | 4133353 |
|  HP, Inc. | 178174 | 4787535 |
|  NetApp, Inc. | 43750 | 2627625 |
|  Seagate Technology Holdings plc (b) | 38645 | 2033113 |
|  Western Digital Corp. (a) | 63935 | 2017149 |
|  |  | 406662999 |
| **Textiles, Apparel & Luxury Goods—0.5%** |  |  |
|  NIKE, Inc. - Class B | 253545 | 29667300 |
|  Ralph Lauren Corp. (b) | 8270 | 873891 |
|  Tapestry, Inc. | 48499 | 1846842 |
|  VF Corp. (b) | 66477 | 1835430 |
|  |  | 34223463 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** | **Value** |
| **Tobacco—0.7%** | | | |
|  Altria Group, Inc. | 360721 | $| 16488557 |
|  Philip Morris International, Inc. | 312018 |  | 31579342 |
|  |  |  | 48067899 |
| **Trading Companies & Distributors—0.2%** |  |  |  |
|  Fastenal Co. (b) | 115282 |  | 5455144 |
|  United Rentals, Inc. (a) | 13950 |  | 4958109 |
|  WW Grainger, Inc. (b) | 9052 |  | 5035175 |
|  |  |  | 15448428 |
| **Water Utilities—0.1%** |  |  |  |
|  American Water Works Co., Inc. (b) | 36597 |  | 5578115 |
| **Wireless Telecommunication Services—0.3%** |  |  |  |
|  T-Mobile U.S., Inc. (a) | 120201 |  | 16828140 |
|  Total Common Stocks <br>(Cost $2,681,986,612) |  |  | 6467584180 |
| **Mutual Funds—1.3%** |  |  |  |
| **Investment Company Securities—1.3%** |  |  |  |
|  SPDR S&P 500 ETF Trust (b) <br>(Cost $89,554,699) | 228000 |  | 87194040 |
| **Short-Term Investments—0.4%** |  |  |  |
| **U.S. Treasury—0.4%** |  |  |  |
|  U.S. Treasury Bills<br>3.407%, 01/17/23 (e) | 7675000 |  | 7664020 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.684%, 01/31/23 (e) | 17700000 |  | 17660344 |
|  Total Short-Term Investments <br>(Cost $25,320,067) |  |  | 25324364 |
| **Securities Lending Reinvestments (f)—7.9%** | **Securities Lending Reinvestments (f)—7.9%** | **Securities Lending Reinvestments (f)—7.9%** | **Securities Lending Reinvestments (f)—7.9%** |
| **Certificates of Deposit—3.7%** |  |  |  |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (g) | 5000000 |  | 5006754 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (g) | 8000000 |  | 8000000 |
|  Bank of Nova Scotia<br>4.550%, SOFR + 0.250%, 02/17/23 (g) | 5000000 |  | 4999774 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (g) | 20000000 |  | 20008405 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (g) | 12000000 |  | 12014028 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (g) | 10000000 |  | 9999980 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (g) | 8000000 |  | 8002784 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.800%, SOFR + 0.500%, 03/03/23 (g) | 15000000 |  | 15005742 |
|  Commonwealth Bank of Australia<br>4.680%, SOFR + 0.380%, 03/30/23 (g) | 5000000 |  | 5000370 |
| **Certificates of Deposit—(Continued)** |  |  |  |
|  Cooperatieve Rabobank UA<br>4.670%, SOFR + 0.370%, 03/20/23 (g) | 10000000 |  | 10000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.830%, SOFR + 0.530%, 02/01/23 (g) | 6000000 |  | 6001254 |
|  Credit Agricole S.A.<br>4.700%, 02/03/23 | 6000000 |  | 6001500 |
|  Credit Industriel et Commercial<br>4.730%, SOFR + 0.430%, 01/06/23 (g) | 15000000 |  | 15000420 |
|  Credit Industriel et Commercial (NY)<br>4.710%, FEDEFF PRV + 0.380%, 01/09/23 (g) | 10000000 |  | 10000290 |
|  Mitsubishi UFJ Trust and Banking Corp. (London) Zero Coupon, 01/17/23 | 5000000 |  | 4989050 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (g) | 7000000 |  | 7002102 |
|  MUFG Bank Ltd. (NY)<br>4.810%, SOFR + 0.510%, 02/17/23 (g) | 6000000 |  | 6001524 |
|  Natixis S.A.<br>4.750%, SOFR + 0.450%, 06/21/23 (g) | 5000000 |  | 5001619 |
|  Nordea Bank Abp (NY)<br>4.760%, SOFR + 0.460%, 02/13/23 (g) | 5000000 |  | 5000855 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/21/23 (g) | 10000000 |  | 10003350 |
|  Royal Bank of Canada<br>4.880%, SOFR + 0.580%, 09/20/23 (g) | 10000000 |  | 10006610 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.890%, FEDEFF PRV + 0.560%, 04/10/23 (g) | 5000000 |  | 5002880 |
|  Sumitomo Mitsui Banking Corp.<br>5.050%, SOFR + 0.750%, 04/21/23 (g) | 12000000 |  | 12016248 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.840%, SOFR + 0.540%, 01/10/23 (g) | 5000000 |  | 5000390 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.890%, SOFR + 0.590%, 02/01/23 (g) | 11000000 |  | 11004312 |
|  Svenska Handelsbanken AB<br>4.900%, SOFR + 0.600%, 04/12/23 (g) | 7000000 |  | 7004753 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (g) | 10000000 |  | 9998900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (g) | 10000000 |  | 10003410 |
|  |  |  | 243077304 |
| **Commercial Paper—0.4%** |  |  |  |
|  DNB Bank ASA<br>4.780%, SOFR + 0.480%, 06/02/23 (g) | 8000000 |  | 8002024 |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (g) | 10000000 |  | 10013620 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (g) | 5000000 |  | 5004940 |
|  UBS AG<br>4.870%, SOFR + 0.570%, 03/23/23 (g) | 6000000 |  | 6000000 |
|  |  |  | 29020584 |
| **Master Demand Notes—0.2%** |  |  |  |
|  Natixis Financial Products LLC<br>4.550%, OBFR + 0.230%, 01/03/23 (g) | 10000000 |  | 10000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.570%, OBFR + 0.250%, 01/03/23 (g) | 1000000 |  | 1000000 |
|  |  |  | 11000000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (f)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—1.7%** | | |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $11,189,781; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $11,408,176. | 11184487 | $11184487 |
|  Citigroup Global Markets, Inc.<br>Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $6,026,950; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $6,120,000. | 6000000 | 6000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $20,500,528; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $20,400,003. | 20000000 | 20000000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $46,539,060; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $47,540,586. | 46500000 | 46500000 |
|  Societe Generale <br>Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $30,025,783; collateralized by various Common Stock with an aggregate market value of $33,395,757. | 30000000 | 30000000 |
|  |  | 113684487 |
| **Time Deposits—0.6%** |  |  |
|  Australia & New Zealand Banking Group, Ltd.<br>4.300%, 01/03/23 | 5000000 | 5000000 |
|  Canadian Imperial Bank London<br>4.250%, 01/03/23 | 2000000 | 2000000 |
|  First Abu Dhabi Bank USA NV<br>4.300%, 01/03/23 | 10000000 | 10000000 |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (g) | 23000000 | 23000000 |
|  |  | 40000000 |
| **Mutual Funds—1.3%** |  |  |
|  AB Government Money Market Portfolio, Institutional Class 4.110% (h) | 5000000 | 5000000 |
|  Allspring Government Money Market Fund, Select Class 4.090% (h) | 1000000 | 1000000 |
|  BlackRock Liquidity Funds FedFund, Institutional Shares 4.020% (h) | 22400000 | 22400000 |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (h) | 106309 | 106309 |
| **Mutual Funds—(Continued)** |  |  |
|  Fidelity Investments Money Market Government Portfolio, Class I 4.060% (h) | 1000000 | 1000000 |
|  Fidelity Investments Money Market Government Portfolio, Institutional Class 4.100% (h) | 2000000 | 2000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (h) | 30000000 | 30000000 |
|  Morgan Stanley Liquidity Funds Government Portfolio, Institutional Shares 4.110% (h) | 6000000 | 6000000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (h) | 5000000 | 5000000 |
|  STIT-Government & Agency Portfolio, Institutional Class 4.220% (h) | 5671742 | 5671742 |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (h) | 5000000 | 5000000 |
|  |  | 83178051 |
|  Total Securities Lending Reinvestments <br>(Cost $519,854,009) |  | 519960426 |
|  Total Investments—108.1% <br>(Cost $3,316,715,387) |  | 7100063010 |
|  Other assets and liabilities (net)—(8.1)% |  | (530437350) |
|  Net Assets—100.0% |  | $6569625660 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $507,484,106 and the collateral received consisted of cash in the amount of $519,803,451 and non-cash collateral with a value of $473,008. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Affiliated Issuer. (See Note 7 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)

(d) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $10,647,600.

(e) The rate shown represents current yield to maturity.

(f) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(g) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(h) The rate shown represents the annualized seven-day yield as of December 31, 2022.

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional**<br>**Amount** | **Notional**<br>**Amount** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  S&P 500 Index E-Mini Futures | 03/17/23 | 100 | USD | 19305000 | $(536250) |

---

**Glossary of Abbreviations** 

Currencies

------

(USD)— United States Dollar

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

Other Abbreviations

------

(ETF)— Exchange-Traded Fund

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $6467584180 | $— | $— | $6467584180 |
|  Total Mutual Funds\* | 87194040 |  |  | 87194040 |
|  Total Short-Term Investments\* |  | 25324364 |  | 25324364 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 243077304 |  | 243077304 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 29020584 |  | 29020584 |
| &nbsp;&nbsp;&nbsp;&nbsp; Master Demand Notes |  | 11000000 |  | 11000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 113684487 |  | 113684487 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposits |  | 40000000 |  | 40000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 83178051 |  |  | 83178051 |
|  Total Securities Lending Reinvestments | 83178051 | 436782375 |  | 519960426 |
|  Total Investments | $6637956271 | $462106739 | $— | $7100063010 |
|  Collateral for Securities Loaned (Liability) | $— | $(519803451) | $— | $(519803451) |
| Futures Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | $(536250) | $— | $— | $(536250) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $7090462840.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (c) | 9600170.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 884888.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 6005019.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 27303.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 7106980220.0 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 218616.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 519803451.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 14622741.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 53750.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1356906.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 413811.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 168887.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 716398.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 537354560.0 |
|  **Net Assets** | $6569625660.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $2324595835.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 4245029825.0 |
|  **Net Assets** | $6569625660.0 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $4597241393.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 1803125460.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 39511934.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 118082401.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 11664472.0 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 88023919.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 36663403.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 759293.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 2284906.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 237533.0 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $52.23 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 49.18 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 52.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 51.68 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 49.11 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments, excluding affiliated investments, was $3,311,691,085.

(b) Includes securities loaned at value of $507,484,106.

(c) Identified cost of affiliated investments was $5,024,302.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $119353094 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 286961 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 275908 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 1349914 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 121265877 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 18273660 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 273691 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 355664 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 5004097 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class D | 45304 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 197569 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class G | 40445 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 265247 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 59630 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 868685 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 25484999 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (921419) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 24563580 |
|  **Net Investment Income** | 96702297 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 474067429 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | 649409 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (3784214) |
|  Net realized gain (loss) | 470932624 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (2140262564) |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments | 773148 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (940858) |
|  Net change in unrealized appreciation (depreciation) | (2140430274) |
|  Net realized and unrealized gain (loss) | (1669497650) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(1572795353) |

---

(a) Net of foreign withholding taxes of $27,721.

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $96702297 | $90777265 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 470932624 | 669203859 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (2140430274) | 1301896478 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (1572795353) | 2061877602 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (523222271) | (437546689) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (209856290) | (179928270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D | (4616007) | (3929655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (13361393) | (11543564) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class G | (1417670) | (1882826) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (752473631) | (634831004) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 98868314 | (323558193) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (2226400670) | 1103488405 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 8796026330 | 7692537925 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $6569625660 | $8796026330 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2899300 | $162358051 | 2016303 | $133516077 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 10227175 | 523222271 | 6910087 | 437546689 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (10635824) | (616395193) | (11153403) | (741683946) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 2490651 | $69185129 | (2227013) | $(170621180) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1991762 | $109929514 | 2139322 | $133630471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 4350255 | 209856290 | 2995310 | 179928270 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (5159347) | (287833483) | (7062669) | (445538724) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1182670 | $31952321 | (1928037) | $(131979983) |
|  **Class D** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2641 | $153238 | 154801 | $10287617 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 90510 | 4616007 | 62237 | 3929655 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (112530) | (6391127) | (234140) | (15526325) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (19379) | $(1621882) | (17102) | $(1309053) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 48836 | $2860744 | 60854 | $4005045 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 263746 | 13361393 | 183932 | 11543564 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (270123) | (15805606) | (388075) | (25459101) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 42459 | $416531 | (143289) | $(9910492) |
|  **Class G** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 5776 | $322416 | 5512 | $340266 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 29424 | 1417670 | 31438 | 1882826 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (50935) | (2803871) | (186839) | (11960577) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (15735) | $(1063785) | (149889) | $(9737485) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $98868314 |  | $(323558193) |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $71.87 | $60.62 | $56.03 | $47.25 | $53.40 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.82 | 0.77 | 0.87 | 1.02 | 1.01 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (14.10) | 15.72 | 8.22 | 13.01 | (3.11) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (13.28) | 16.49 | 9.09 | 14.03 | (2.10) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.80) | (1.04) | (1.04) | (1.17) | (0.98) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (5.56) | (4.20) | (3.46) | (4.08) | (3.07) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (6.36) | (5.24) | (4.50) | (5.25) | (4.05) |
|  **Net Asset Value, End of Period** | $52.23 | $71.87 | $60.62 | $56.03 | $47.25 |
|  **Total Return (%)** (b) | (18.30) | 28.36 | 18.10 | 31.15 | (4.60) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
|  Net ratio of expenses to average net assets (%) (c) | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.40 | 1.17 | 1.63 | 1.95 | 1.90 |
|  Portfolio turnover rate (%) | 10 | 12 | 13 | 12 | 14 |
|  Net assets, end of period (in millions) | $4597.2 | $6147.5 | $5319.9 | $4933.6 | $4117.9 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $68.09 | $57.69 | $53.53 | $45.34 | $51.39 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.63 | 0.58 | 0.71 | 0.85 | 0.84 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (13.35) | 14.92 | 7.82 | 12.45 | (2.97) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.72) | 15.50 | 8.53 | 13.30 | (2.13) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.63) | (0.90) | (0.91) | (1.03) | (0.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (5.56) | (4.20) | (3.46) | (4.08) | (3.07) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (6.19) | (5.10) | (4.37) | (5.11) | (3.92) |
|  **Net Asset Value, End of Period** | $49.18 | $68.09 | $57.69 | $53.53 | $45.34 |
|  **Total Return (%)** (b) | (18.51) | 28.04 | 17.83 | 30.80 | (4.83) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 |
|  Net ratio of expenses to average net assets (%) (c) | 0.51 | 0.51 | 0.52 | 0.52 | 0.52 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.15 | 0.92 | 1.38 | 1.70 | 1.65 |
|  Portfolio turnover rate (%) | 10 | 12 | 13 | 12 | 14 |
|  Net assets, end of period (in millions) | $1803.1 | $2415.9 | $2158 | $2043.2 | $1779.4 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class D** | **Class D** | **Class D** | **Class D** | **Class D** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $71.62 | $60.43 | $55.86 | $47.11 | $53.24 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.75 | 0.70 | 0.82 | 0.96 | 0.95 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (14.04) | 15.66 | 8.19 | 12.98 | (3.09) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (13.29) | 16.36 | 9.01 | 13.94 | (2.14) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.73) | (0.97) | (0.98) | (1.11) | (0.92) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (5.56) | (4.20) | (3.46) | (4.08) | (3.07) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (6.29) | (5.17) | (4.44) | (5.19) | (3.99) |
|  **Net Asset Value, End of Period** | $52.04 | $71.62 | $60.43 | $55.86 | $47.11 |
|  **Total Return (%)** (b) | (18.38) | 28.23 | 17.99 | 31.03 | (4.69) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
|  Net ratio of expenses to average net assets (%) (c) | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.29 | 1.07 | 1.54 | 1.85 | 1.80 |
|  Portfolio turnover rate (%) | 10 | 12 | 13 | 12 | 14 |
|  Net assets, end of period (in millions) | $39.5 | $55.8 | $48.1 | $48.3 | $45.1 |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $71.17 | $60.08 | $55.56 | $46.88 | $53.01 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.72 | 0.67 | 0.79 | 0.93 | 0.92 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (13.96) | 15.57 | 8.14 | 12.91 | (3.08) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (13.24) | 16.24 | 8.93 | 13.84 | (2.16) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.69) | (0.95) | (0.95) | (1.08) | (0.90) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (5.56) | (4.20) | (3.46) | (4.08) | (3.07) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (6.25) | (5.15) | (4.41) | (5.16) | (3.97) |
|  **Net Asset Value, End of Period** | $51.68 | $71.17 | $60.08 | $55.56 | $46.88 |
|  **Total Return (%)** (b) | (18.43) | 28.17 | 17.93 | 30.93 | (4.72) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 |
|  Net ratio of expenses to average net assets (%) (c) | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.25 | 1.02 | 1.48 | 1.80 | 1.75 |
|  Portfolio turnover rate (%) | 10 | 12 | 13 | 12 | 14 |
|  Net assets, end of period (in millions) | $118.1 | $159.6 | $143.3 | $140.2 | $125.2 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class G** | **Class G** | **Class G** | **Class G** | **Class G** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $67.87 | $57.51 | $53.39 | $45.24 | $51.30 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.60 | 0.54 | 0.68 | 0.82 | 0.82 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (13.31) | 14.89 | 7.78 | 12.44 | (2.98) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.71) | 15.43 | 8.46 | 13.26 | (2.16) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.49) | (0.87) | (0.88) | (1.03) | (0.83) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (5.56) | (4.20) | (3.46) | (4.08) | (3.07) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (6.05) | (5.07) | (4.34) | (5.11) | (3.90) |
|  **Net Asset Value, End of Period** | $49.11 | $67.87 | $57.51 | $53.39 | $45.24 |
|  **Total Return (%)** (b) | (18.55) | 27.99 | 17.74 | 30.77 | (4.89) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 |
|  Net ratio of expenses to average net assets (%) (c) | 0.56 | 0.56 | 0.57 | 0.57 | 0.57 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.09 | 0.87 | 1.33 | 1.65 | 1.60 |
|  Portfolio turnover rate (%) | 10 | 12 | 13 | 12 | 14 |
|  Net assets, end of period (in millions) | $11.7 | $17.2 | $23.2 | $21.8 | $16.3 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MetLife Stock Index Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers five classes of shares: Class A, B, D, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $218,616 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $113,684,487, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(435069656) | $— | $— | $— | $(435069656) |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | (84733795) |  |  |  | (84733795) |
|  **Total Borrowings** | $**(519803451)** | $**—** | $**—** | $**—** | $**(519803451)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(519803451) |

---

**3. Investments in Derivative Instruments** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

---

| | | |
|:---|:---|:---|
|  | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets & <br>Liabilities Location** | **Fair Value** |
|  Equity | Unrealized depreciation on futures contracts (a) | $536250 |

---

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Statement of Operations Location—Net Realized Gain (Loss)** | **Equity** |
|  Futures contracts | $(3784214) |
| **Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)** | **Equity** |
|  Futures contracts | $(940858) |

---

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Futures contracts long | $20493591 |

---

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $734006855 | $0 | $1299212361 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the annual rate of 0.250% of average daily net assets. Fees earned by Brighthouse Investment Advisers with respect to the Portfolio for the year ended December 31, 2022 were $18,273,660.

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with MetLife Investment Management, LLC ("MIM") with respect to managing the Portfolio. For providing subadvisory services to the Portfolio, Brighthouse Investment Advisers has agreed to pay MIM an investment subadvisory fee for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum** | **Average Daily Net Assets** |
| 0.020% | On the first $500 million |
| 0.015% | Of the next $500 million |
| 0.010% | Of the next $1 billion |
| 0.005% | On amounts over $2 billion |

---

Fees earned by MIM with respect to the Portfolio for the year ended December 31, 2022 were $540,473.

**Management Fee Waiver** - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.005% | Over $500 million and under $1 billion |
| 0.010% | Of the next $1 billion |
| 0.015% | On amounts over $2 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees** - The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Transactions in Securities of Affiliated Issuers** 

A summary of the Portfolio's transactions in the securities of affiliated issuers during the year ended December 31, 2022 is as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31,<br>2021** | **Purchases** | **Sales** | **Realized<br>Gain/(Loss)** | **Change in<br>Unrealized<br>Appreciation /<br>(Depreciation)** | **Ending Value<br>as of<br>December 31,<br>2022** | **Income<br>earned from<br>affiliates<br>during the period** | **Number of<br>shares held<br>December 31,<br>2022** |
|  MetLife, Inc. | $9683325 | $– $| (1505712) | $649409 | $773148 | $9600170 | $286961 | 132654 |

---

**8. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**9. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $3420878955 |
|  Gross unrealized appreciation | 3969140382 |
|  Gross unrealized (depreciation) | (289956327) |
|  Net unrealized appreciation (depreciation) | $3679184055 |

---

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $104263779 | $146110100 | $648209852 | $488720904 | $752473631 | $634831004 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $93784150 | $472230507 | $3679184055 | $– $| 4245198712 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**10. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MetLife Stock Index Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MetLife Stock Index Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MetLife Stock Index Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MetLife Stock Index Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Management, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the S&P 500 Index, for the one-, three-, and five-year periods ended October 31, 2022, and the Board noted management's explanation of the tracking error between the Portfolio and the Index. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**MetLife Stock Index Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were above the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Managed by Massachusetts Financial Services Company** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, E and F shares of the MFS Total Return Portfolio returned -9.63%, -9.87%, -9.77%, and -9.82%, respectively. The Portfolio's benchmarks, the Standard & Poor's ("S&P") 500 Index¹ and the Bloomberg U.S. Aggregate Bond Index², returned -18.11% and -13.01%, respectively. A blend of the S&P 500 Index (60%) and the Bloomberg U.S. Aggregate Bond Index (40%) returned -15.79%.

**MARKET ENVIRONMENT / CONDITIONS** 

In 2022, markets continued to grapple with the strongest global inflationary pressures in decades, along with signs of slowing economic growth. Intermittent COVID-19 flare-ups, particularly in China, where home-grown vaccines have proved less effective than elsewhere, kept supply chains stretched for a considerable period. At the same time, the reopening of the economy in other parts of the world where the pandemic had been better contained led to a shift in consumption patterns in favor of services, straining already tight labor markets in most developed economies, while reducing demand for manufactured goods, primarily from Asia. As a result of Russia's invasion of Ukraine, geopolitical considerations, such as sanctions and trade bans, have resulted in additional supply chain disruptions and volatile global energy prices. Taken together, these factors have contributed to market volatility.

The ripple effects from the Russian invasion further complicated the mission central banks must undertake to rein in surging inflation. Energy shocks have historically resulted in global growth slowdowns, if not pullbacks, so policymakers found themselves in the difficult position of trying to restrain inflation without tipping economies into recession. Despite the challenging macroeconomic and geopolitical environment, policymakers remained focused on controlling inflation, although investors appeared to have expected varying degrees of action from the central banks. The U.S. Federal Reserve has been among the most aggressive developed market central banks, tightening policy at the fastest rate in decades, although it slowed its hiking pace at the end of the period, as did the European Central Bank. After remaining on the monetary policy sidelines for much of the period, the Bank of Japan widened its yield curve control band, capping the yield on its 10-year bond at 0.50%, up from 0.25%, an action investors interpreted as a first step toward monetary policy normalization.

Against an environment of still-tight labor markets, tighter global financial conditions and volatile materials prices, investor anxiety appeared to have increased over the potential that corporate profit margins may have peaked for this cycle. That said, tentative signs that supply chain bottlenecks (particularly semiconductors) may be moderating, the easing of COVID-19 restrictions in China, low levels of unemployment across developed markets and hopes that inflation levels may be near a peak were supportive factors for the macroeconomic backdrop during the period.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio outperformed its blended benchmark in 2022. Overall, the equity portion of the Portfolio outperformed the S&P 500 Index, while the fixed income portion slightly underperformed the Bloomberg U.S. Aggregate Bond Index.

Within the equity portion of the Portfolio, an underweight position and stock selection within the Consumer Discretionary sector contributed to performance relative to the S&P 500 Index. Here, not owning shares of both internet retailer Amazon.com and electric vehicle manufacturer Tesla aided relative performance. Security selection and an underweight position in the Communication Services sector further strengthened relative results. Here, not owning shares of social networking service provider Meta Platforms and an underweight position in technology company Alphabet bolstered relative performance.

Security selection and an overweight position in the Health Care sector also supported relative returns. Within this sector, overweight positions in global health services provider Cigna, pharmaceutical company Merck and health services company McKesson benefited relative results. Elsewhere, the Portfolio's overweight positions in integrated energy company Hess and oil and gas company ConocoPhillips, and not holding shares of computer and personal electronics maker Apple further helped relative performance.

Within the equity portion of the Portfolio, security selection in the Industrials sector detracted from performance relative to the S&P 500 Index, led by overweight positions in power and hand tools manufacturer Stanley Black & Decker and home improvement products maker Masco. Stock selection in the Materials sector also hindered relative performance. However, there were no individual stocks within this sector, either in the Portfolio or in the benchmark, that were among the Portfolio's largest relative detractors during the period.

Elsewhere, not owning shares of integrated oil and gas company ExxonMobil, integrated energy company Chevron, health insurance and Medicare/Medicaid provider UnitedHealth Group, insurance and investment firm Berkshire Hathaway and pharmaceutical companies Eli Lilly and AbbVie further weighed on relative returns. Additionally, overweight positions in cable services provider Comcast and semiconductor company Intel dampened relative results.

Within the fixed income portion of the Portfolio, the Portfolio's yield curve positioning detracted from performance relative to its benchmark. Additionally, bond selection within Asset-Backed Securities ("ABS") and an underweight exposure to the Treasury sector weighed on relative returns.

The Portfolio's underweight to duration in a rising rate environment contributed to performance relative to the Bloomberg U.S. Aggregate Bond Index. The Portfolio's bond selection and an underweight

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Managed by Massachusetts Financial Services Company** 

**Portfolio Manager Commentary\*—(Continued)** 

position in Agency Mortgage-Backed Securities ("MBS") also benefited relative performance, as did overweight exposure and security selection in Commercial Mortgage-Backed Securities ("CMBS").

At year-end, the equity portion of the Portfolio had the largest overweight allocations in the Financials and Industrials sectors. In contrast, the largest underweight allocations in the equity portion of the Portfolio were in the Information Technology ("IT") and Consumer Discretionary sectors. Over the trailing 12 months, the equity portion of the Portfolio increased its weighting in the Communication Services, Energy and Materials sectors, while decreasing its exposure to the Consumer Staples, Health Care and IT sectors.

The fixed income portion of the Portfolio ended the period approximately neutral duration relative to the Bloomberg U.S. Aggregate Bond Index. The Portfolio was underweight U.S. Treasuries in favor of overweight positions in corporate bonds, ABS, CMBS, Agency MBS, and off-benchmark exposure to Collateralized Loan Obligations ("CLO"). Over the trailing 12 months, the fixed income portion of the Portfolio increased exposure to CLOs, Agency MBS, and corporate bonds, while decreasing exposure to U.S. Treasuries and CMBS.

The Portfolio utilized U.S. Treasury futures during the period for yield curve management purposes to ensure that overall Portfolio duration and yield curve positioning was consistent with the team's views. Specifically, the U.S. Treasury futures used in the Portfolio were short the 10-year portion of the yield curve and long the 2-year, 5-year, and 30-year portion. Using U.S. Treasury futures instead of cash bonds to achieve this positioning allowed us greater efficiency in modestly adjusting duration and yield positioning over the course of the year.

**Steven Gorham** 

**Joshua Marston** 

**Johnathon Munko** 

**Alexander Mackey** 

**Henry Peabody^** 

Portfolio Managers

*Massachusetts Financial Services Company* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

^ Henry Peabody relinquished his portfolio management duties for the Portfolio subsequent to the end of the reporting period.

¹ The S&P 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-weighted index (stock price times number of shares outstanding) with each stock's weight in the Index proportionate to its market value.

² The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG U.S. AGGREGATE BOND INDEX & THE S&P 500 INDEX & THE BLENDED INDEX**![LOGO](g400082g96k49.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**MFS Total Return Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -9.63 | 5.19 | 7.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -9.87 | 4.92 | 7.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -9.77 | 5.03 | 7.23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class F** | -9.82 | 4.98 | 7.18 |
| &nbsp;&nbsp;&nbsp;**Bloomberg U.S. Aggregate Bond Index** | -13.01 | 0.02 | 1.06 |
| &nbsp;&nbsp;&nbsp;**S&P 500 Index** | -18.11 | 9.43 | 12.56 |
| &nbsp;&nbsp;&nbsp;**Blended Index** | -15.79 | 5.96 | 8.09 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Equity Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Financials** | **14.8** |
| **Health Care** | **10.8** |
| **Industrials** | **8.6** |
| **Information Technology** | **7.2** |
| **Communication Services** | **4.4** |

---

**Top Equity Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Goldman Sachs Group, Inc. (The)** | **2.2** |
| **Charles Schwab Corp. (The)** | **1.9** |
| **Microsoft Corp.** | **1.9** |
| **JPMorgan Chase & Co.** | **1.9** |
| **Cigna Corp.** | **1.8** |

---

**Top Fixed Income Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Treasury & Government Agencies** | **18.7** |
| **Corporate Bonds & Notes** | **13.4** |
| **Asset-Backed Securities** | **4.7** |
| **Mortgage-Backed Securities** | **1.8** |
| **Municipals** | **0.4** |

---

**Top Fixed Income Issuers** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Fannie Mae 30 Yr. Pool** | **5.2** |
| **U.S. Treasury Bonds** | **3.3** |
| **U.S. Treasury Notes** | **3.0** |
| **Ginnie Mae II 30 Yr. Pool** | **2.1** |
| **Freddie Mac 30 Yr. Pool** | **1.0** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MFS Total Return Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.61% | $1000.00 | $1037.10 | $3.13 |
|  | Hypothetical\* | 0.61% | $1000.00 | $1022.13 | $3.11 |
|  Class B (a) | Actual | 0.86% | $1000.00 | $1035.80 | $4.41 |
|  | Hypothetical\* | 0.86% | $1000.00 | $1020.87 | $4.38 |
|  Class E (a) | Actual | 0.76% | $1000.00 | $1036.30 | $3.90 |
|  | Hypothetical\* | 0.76% | $1000.00 | $1021.37 | $3.87 |
|  Class F (a) | Actual | 0.81% | $1000.00 | $1036.00 | $4.16 |
|  | Hypothetical\* | 0.81% | $1000.00 | $1021.12 | $4.13 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—58.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.5%** | | |
|  Howmet Aerospace, Inc. | 74552 | 2938094 |
|  L3Harris Technologies, Inc. | 18980 | 3951826 |
|  Northrop Grumman Corp. | 4448 | 2426873 |
|  |  | 9316793 |
| **Auto Components—1.0%** | **Auto Components—1.0%** | **Auto Components—1.0%** |
|  Aptiv plc (a) | 33103 | 3082883 |
|  Lear Corp. | 23818 | 2953908 |
|  |  | 6036791 |
| **Banks—4.8%** | **Banks—4.8%** | **Banks—4.8%** |
|  Bank of America Corp. | 233833 | 7744549 |
|  JPMorgan Chase & Co. | 89310 | 11976471 |
|  PNC Financial Services Group, Inc. (The) | 20212 | 3192283 |
|  Truist Financial Corp. | 171125 | 7363509 |
|  |  | 30276812 |
| **Beverages—0.4%** | **Beverages—0.4%** | **Beverages—0.4%** |
|  Constellation Brands, Inc. - Class A | 9630 | 2231752 |
| **Biotechnology—0.2%** | **Biotechnology—0.2%** | **Biotechnology—0.2%** |
|  Vertex Pharmaceuticals, Inc. (a) | 5339 | 1541796 |
| **Building Products—2.1%** | **Building Products—2.1%** | **Building Products—2.1%** |
|  Johnson Controls International plc | 115442 | 7388288 |
|  Masco Corp. | 120284 | 5613654 |
|  |  | 13001942 |
| **Capital Markets—6.6%** | **Capital Markets—6.6%** | **Capital Markets—6.6%** |
|  Cboe Global Markets, Inc. | 19303 | 2421947 |
|  Charles Schwab Corp. (The) | 146452 | 12193593 |
|  Goldman Sachs Group, Inc. (The) | 39644 | 13612957 |
|  Invesco, Ltd. | 82148 | 1477843 |
|  Morgan Stanley | 57706 | 4906164 |
|  Nasdaq, Inc. | 47344 | 2904554 |
|  Northern Trust Corp. | 41269 | 3651894 |
|  |  | 41168952 |
| **Chemicals—1.6%** | **Chemicals—1.6%** | **Chemicals—1.6%** |
|  Axalta Coating Systems, Ltd. (a) | 128462 | 3271927 |
|  DuPont de Nemours, Inc. | 44938 | 3084095 |
|  PPG Industries, Inc. | 31279 | 3933022 |
|  |  | 10289044 |
| **Construction Materials—0.3%** | **Construction Materials—0.3%** | **Construction Materials—0.3%** |
|  Vulcan Materials Co. | 12239 | 2143171 |
| **Distributors—0.6%** | **Distributors—0.6%** | **Distributors—0.6%** |
|  LKQ Corp. | 73538 | 3927665 |
| **Electric Utilities—2.4%** | **Electric Utilities—2.4%** | **Electric Utilities—2.4%** |
|  Duke Energy Corp. | 35280 | 3633487 |
|  Exelon Corp. | 68539 | 2962941 |
|  PG&E Corp. (a) | 250296 | 4069813 |
| **Electric Utilities—(Continued)** | **Electric Utilities—(Continued)** | **Electric Utilities—(Continued)** |
|  Southern Co. (The) | 61962 | 4424707 |
|  |  | 15090948 |
| **Electrical Equipment—2.2%** | **Electrical Equipment—2.2%** | **Electrical Equipment—2.2%** |
|  Eaton Corp. plc | 59792 | 9384355 |
|  Regal Rexnord Corp. | 36532 | 4383109 |
|  |  | 13767464 |
| **Entertainment—0.4%** | **Entertainment—0.4%** | **Entertainment—0.4%** |
|  Electronic Arts, Inc. | 15070 | 1841253 |
|  Warner Bros Discovery, Inc. (a) | 53638 | 508488 |
|  |  | 2349741 |
| **Equity Real Estate Investment Trusts—0.3%** | **Equity Real Estate Investment Trusts—0.3%** | **Equity Real Estate Investment Trusts—0.3%** |
|  STORE Capital Corp. | 52154 | 1672057 |
| **Food & Staples Retailing—0.7%** | **Food & Staples Retailing—0.7%** | **Food & Staples Retailing—0.7%** |
|  Walmart, Inc. | 29584 | 4194715 |
| **Food Products—1.3%** | **Food Products—1.3%** | **Food Products—1.3%** |
|  Archer-Daniels-Midland Co. | 25874 | 2402401 |
|  Danone S.A. | 29284 | 1542795 |
|  General Mills, Inc. | 22856 | 1916476 |
|  J.M. Smucker Co. (The) | 9067 | 1436757 |
|  Mondelez International, Inc. - Class A | 13637 | 908906 |
|  |  | 8207335 |
| **Health Care Equipment & Supplies—1.1%** | **Health Care Equipment & Supplies—1.1%** | **Health Care Equipment & Supplies—1.1%** |
|  Becton Dickinson & Co. | 7901 | 2009224 |
|  Medtronic plc | 63631 | 4945402 |
|  |  | 6954626 |
| **Health Care Providers & Services—2.8%** | **Health Care Providers & Services—2.8%** | **Health Care Providers & Services—2.8%** |
|  Cigna Corp. | 34130 | 11308634 |
|  McKesson Corp. | 13738 | 5153399 |
|  Quest Diagnostics, Inc. | 8692 | 1359776 |
|  |  | 17821809 |
| **Hotels, Restaurants & Leisure—0.4%** | **Hotels, Restaurants & Leisure—0.4%** | **Hotels, Restaurants & Leisure—0.4%** |
|  Booking Holdings, Inc. (a) | 528 | 1064068 |
|  Wendy's Co. (The) | 69562 | 1574188 |
|  |  | 2638256 |
| **Household Products—0.2%** | **Household Products—0.2%** | **Household Products—0.2%** |
|  Kimberly-Clark Corp. | 9230 | 1252972 |
| **Industrial Conglomerates—0.7%** | **Industrial Conglomerates—0.7%** | **Industrial Conglomerates—0.7%** |
|  Honeywell International, Inc. | 20213 | 4331646 |
| **Insurance—3.5%** | **Insurance—3.5%** | **Insurance—3.5%** |
|  Aon plc - Class A | 22629 | 6791868 |
|  Chubb, Ltd. | 28262 | 6234597 |
|  Travelers Cos., Inc. (The) | 17414 | 3264951 |
|  Willis Towers Watson plc | 22170 | 5422339 |
|  |  | 21713755 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Interactive Media & Services—0.8%** | **Interactive Media & Services—0.8%** | **Interactive Media & Services—0.8%** |
|  Alphabet, Inc. - Class A (a) | 54850 | $4839415 |
| **IT Services—2.2%** | **IT Services—2.2%** | **IT Services—2.2%** |
|  Accenture plc - Class A | 11431 | 3050248 |
|  Amdocs, Ltd. | 39414 | 3582733 |
|  Cognizant Technology Solutions Corp. - Class A | 34430 | 1969052 |
|  Fidelity National Information Services, Inc. | 37720 | 2559302 |
|  Fiserv, Inc. (a) | 29077 | 2938812 |
|  |  | 14100147 |
| **Life Sciences Tools & Services—1.6%** | **Life Sciences Tools & Services—1.6%** | **Life Sciences Tools & Services—1.6%** |
|  Danaher Corp. | 21929 | 5820395 |
|  ICON plc (a) | 13214 | 2566820 |
|  Thermo Fisher Scientific, Inc. | 2968 | 1634448 |
|  |  | 10021663 |
| **Machinery—1.0%** | **Machinery—1.0%** | **Machinery—1.0%** |
|  Ingersoll Rand, Inc. | 65555 | 3425249 |
|  Stanley Black & Decker, Inc. | 35677 | 2680056 |
|  |  | 6105305 |
| **Media—2.2%** | **Media—2.2%** | **Media—2.2%** |
|  Comcast Corp. - Class A | 281243 | 9835068 |
|  Omnicom Group, Inc. | 47176 | 3848146 |
|  |  | 13683214 |
| **Metals & Mining—0.2%** | **Metals & Mining—0.2%** | **Metals & Mining—0.2%** |
|  Rio Tinto plc | 16858 | 1182862 |
| **Multiline Retail—0.1%** | **Multiline Retail—0.1%** | **Multiline Retail—0.1%** |
|  Dollar Tree, Inc. (a) | 5965 | 843690 |
| **Oil, Gas & Consumable Fuels—3.2%** | **Oil, Gas & Consumable Fuels—3.2%** | **Oil, Gas & Consumable Fuels—3.2%** |
|  ConocoPhillips | 64042 | 7556956 |
|  Hess Corp. | 44111 | 6255822 |
|  Pioneer Natural Resources Co. | 18713 | 4273862 |
|  Suncor Energy, Inc. | 70770 | 2244883 |
|  |  | 20331523 |
| **Pharmaceuticals—4.6%** | **Pharmaceuticals—4.6%** | **Pharmaceuticals—4.6%** |
|  Bayer AG | 57042 | 2945220 |
|  Johnson & Johnson | 59313 | 10477642 |
|  Merck & Co., Inc. | 78122 | 8667636 |
|  Organon & Co. | 46840 | 1308241 |
|  Pfizer, Inc. | 56901 | 2915607 |
|  Roche Holding AG | 8457 | 2657712 |
|  |  | 28972058 |
| **Professional Services—0.2%** | **Professional Services—0.2%** | **Professional Services—0.2%** |
|  Equifax, Inc. | 7407 | 1439624 |
| **Road & Rail—1.0%** | **Road & Rail—1.0%** | **Road & Rail—1.0%** |
|  Union Pacific Corp. | 29274 | 6061767 |
| **Semiconductors & Semiconductor Equipment—2.2%** | **Semiconductors & Semiconductor Equipment—2.2%** | **Semiconductors & Semiconductor Equipment—2.2%** |
|  Applied Materials, Inc. | 29104 | 2834148 |
|  Intel Corp. | 108747 | 2874183 |
|  NXP Semiconductors NV | 25774 | 4073065 |
|  Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 25851 | 1925641 |
|  Texas Instruments, Inc. | 14468 | 2390403 |
|  |  | 14097440 |
| **Software—2.2%** | **Software—2.2%** | **Software—2.2%** |
|  Microsoft Corp. | 50589 | 12132254 |
|  Oracle Corp. | 22395 | 1830567 |
|  |  | 13962821 |
| **Specialty Retail—0.2%** | **Specialty Retail—0.2%** | **Specialty Retail—0.2%** |
|  Ross Stores, Inc. | 8698 | 1009577 |
| **Technology Hardware, Storage & Peripherals—0.2%** | **Technology Hardware, Storage & Peripherals—0.2%** | **Technology Hardware, Storage & Peripherals—0.2%** |
|  Seagate Technology Holdings plc | 29455 | 1549628 |
| **Tobacco—1.0%** | **Tobacco—1.0%** | **Tobacco—1.0%** |
|  Philip Morris International, Inc. | 64044 | 6481893 |
| **Wireless Telecommunication Services—0.8%** |  |  |
|  T-Mobile U.S., Inc. (a) | 35533 | 4974620 |
|  Total Common Stocks <br>(Cost $284,048,031) |  | 369587289 |
| **U.S. Treasury & Government Agencies—18.7%** | **U.S. Treasury & Government Agencies—18.7%** | **U.S. Treasury & Government Agencies—18.7%** |
| **Agency Sponsored Mortgage - Backed—12.4%** | **Agency Sponsored Mortgage - Backed—12.4%** | **Agency Sponsored Mortgage - Backed—12.4%** |
|  Fannie Mae 15 Yr. Pool<br>2.000%, 05/01/37 | 2963798 | 2643297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/31 | 20280 | 18924 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/37 | 35729 | 32691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/37 | 482978 | 441910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/37 | 405924 | 371405 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/28 | 52002 | 49862 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/30 | 32531 | 31057 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/31 | 504405 | 482495 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/33 | 21032 | 19755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/33 | 446227 | 419086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/33 | 39991 | 37558 |
|  Fannie Mae 20 Yr. Pool<br>1.500%, 02/01/42 | 33467 | 27047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/42 | 727329 | 613084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/42 | 453209 | 382020 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/42 | 753671 | 635296 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/42 | 354031 | 307870 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/42 | 548495 | 476976 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/37 | 62215 | 57717 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/37 | 108887 | 101014 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/38 | 100632 | 94457 |
|  Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 09/01/51 | 1000000 | 770886 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/51 | 53489 | 43900 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 86954 | $71448 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 192848 | 157461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/51 | 4186155 | 3410943 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/52 | 2915165 | 2375478 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/52 | 944631 | 769496 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/52 | 645084 | 525737 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 07/01/52 | 122428 | 99683 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/50 | 205610 | 175940 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/50 | 40021 | 34493 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/50 | 390531 | 336573 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 353798 | 305066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 986852 | 836919 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/51 | 712645 | 605154 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 130392 | 111278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 50044 | 42441 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 738943 | 630042 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 1261681 | 1073589 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 1178434 | 1002861 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/52 | 839384 | 711448 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/52 | 1118267 | 947390 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/52 | 498283 | 422142 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/52 | 352725 | 298791 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/52 | 273884 | 232076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/46 | 94148 | 84357 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/51 | 118756 | 105758 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/51 | 703124 | 620708 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/52 | 324682 | 288591 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/52 | 173818 | 152702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/52 | 347458 | 304975 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/52 | 348088 | 305549 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/52 | 996030 | 874529 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/52 | 474143 | 416283 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/41 | 27413 | 25647 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/42 | 270805 | 253490 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/43 | 92461 | 86490 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/43 | 302805 | 283180 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/43 | 267240 | 249929 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/43 | 369995 | 345862 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/43 | 142614 | 133430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/43 | 517492 | 483790 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/45 | 440283 | 410557 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/45 | 368953 | 343309 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/45 | 301279 | 280178 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/46 | 109299 | 101589 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/46 | 110599 | 102751 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/46 | 398594 | 370104 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/52 | 170214 | 154690 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/52 | 699930 | 636086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/40 | 268671 | 258020 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/40 | 79213 | 76073 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/40 | 181893 | 173732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/41 | 97556 | 93687 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/41 | 188277 | 180813 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/41 | 79208 | 76067 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/42 | 527595 | 506661 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/42 | 50202 | 48201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/42 | 64015 | 61476 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/01/42 | 66622 | 63951 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/43 | 84128 | 80606 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/43 | 17548 | 16852 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/43 | 147715 | 141853 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/43 | 76367 | 73340 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/43 | 55982 | 53623 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/44 | 44312 | 42554 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/44 | 148926 | 143019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/44 | 52202 | 50002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/47 | 175429 | 168216 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/33 | 52045 | 51322 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/01/34 | 147145 | 145191 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/40 | 41124 | 40767 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/40 | 11764 | 11649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/41 | 72468 | 71840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/41 | 148945 | 147653 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/42 | 35692 | 35383 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/43 | 95692 | 94861 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/44 | 580577 | 575543 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/44 | 53946 | 52238 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/52 | 466687 | 449803 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/52 | 1008812 | 971038 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/33 | 30852 | 31506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/34 | 26109 | 26662 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/34 | 8550 | 8731 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/34 | 10248 | 10465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/34 | 40536 | 41396 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/01/35 | 28334 | 28936 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/35 | 78597 | 80266 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/35 | 25279 | 25815 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/35 | 16806 | 17162 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/35 | 66001 | 67402 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/39 | 41972 | 42339 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/39 | 35739 | 36246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/39 | 19756 | 19970 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/40 | 30324 | 30390 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/41 | 24185 | 24491 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/01/33 | 3094 | 3104 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 05/01/33 | 1730 | 1736 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/33 | 57864 | 59123 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/33 | 49169 | 50657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/01/33 | 30350 | 30997 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/34 | 37162 | 37641 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/01/34 | 40904 | 41938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/01/34 | 17042 | 17191 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/34 | 17930 | 17986 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 05/01/34 | 100881 | 102580 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/01/34 | 145010 | 149204 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/34 | 38439 | 38916 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/01/34 | 145094 | 146594 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/01/34 | 141070 | 142999 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/01/34 | 184731 | 188329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/34 | 66308 | 67079 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool | Fannie Mae 30 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/35 | 125475 | $129830 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/35 | 29321 | 30295 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/01/35 | 7403 | 7423 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/01/35 | 75359 | 78021 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/01/52 | 1624998 | 1629514 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/53 | 350000 | 350939 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/32 | 34103 | 34637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/01/34 | 10314 | 10518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/34 | 94939 | 97014 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/34 | 90167 | 92698 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/34 | 56165 | 57497 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/34 | 85637 | 87553 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/34 | 51454 | 52505 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/34 | 22279 | 22716 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/34 | 6969 | 7076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/35 | 5211 | 5290 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/35 | 16916 | 17388 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/35 | 34611 | 35467 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/35 | 7520 | 7638 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/35 | 31553 | 32333 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/36 | 43349 | 44066 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/36 | 17356 | 17627 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/36 | 4191 | 4349 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/37 | 34602 | 35410 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/01/52 | 175001 | 179378 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/01/31 | 11015 | 11401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 09/01/31 | 16472 | 16881 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/01/32 | 5858 | 6081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/01/32 | 28719 | 29959 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/01/32 | 18436 | 19052 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 01/01/33 | 12390 | 12786 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/01/34 | 32383 | 33286 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/01/34 | 9625 | 9878 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/01/36 | 9980 | 10225 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/36 | 15316 | 15698 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/01/37 | 35222 | 36303 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/37 | 14967 | 15338 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/01/37 | 15010 | 15413 |
|  Fannie Mae Pool | Fannie Mae Pool | Fannie Mae Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.410%, 05/01/23 | 80758 | 79835 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/26 | 75526 | 76224 |
|  Fannie Mae REMICS (CMO) | Fannie Mae REMICS (CMO) | Fannie Mae REMICS (CMO) |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/25/40 | 3902 | 3845 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/25/44 | 16146 | 15520 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/25/46 | 62271 | 56091 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/25/33 (b) | 75319 | 6948 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 05/25/40 | 31429 | 29097 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/25/40 | 42261 | 40752 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/25/46 (b) | 93221 | 17830 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/25/25 | 6644 | 6577 |
|  Freddie Mac 15 Yr. Gold Pool | Freddie Mac 15 Yr. Gold Pool | Freddie Mac 15 Yr. Gold Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/24 | 15203 | 15185 |
|  Freddie Mac 15 Yr. Pool | Freddie Mac 15 Yr. Pool | Freddie Mac 15 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/37 | 215039 | 196960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/37 | 140866 | 128959 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac 20 Yr. Gold Pool | Freddie Mac 20 Yr. Gold Pool | Freddie Mac 20 Yr. Gold Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/38 | 208499 | 193627 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/01/37 | 143445 | 137274 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/37 | 37972 | 36603 |
|  Freddie Mac 20 Yr. Pool | Freddie Mac 20 Yr. Pool | Freddie Mac 20 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/42 | 494057 | 416456 |
|  Freddie Mac 30 Yr. Gold Pool | Freddie Mac 30 Yr. Gold Pool | Freddie Mac 30 Yr. Gold Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/42 | 262120 | 238772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/43 | 621890 | 566506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/43 | 523327 | 476726 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/46 | 215151 | 193251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/46 | 485196 | 434752 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/46 | 503321 | 451024 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/42 | 203904 | 191084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/42 | 138079 | 129401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/42 | 369377 | 346154 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/43 | 84599 | 79279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/43 | 17368 | 16259 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/43 | 207256 | 193874 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/45 | 116831 | 108684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/46 | 168320 | 156341 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/40 | 172083 | 165445 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/01/41 | 368884 | 354650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/44 | 135778 | 130200 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/35 | 14986 | 14798 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/39 | 65105 | 64580 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/39 | 36921 | 36633 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/39 | 20385 | 20226 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/39 | 32151 | 31909 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/42 | 58562 | 58120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/33 | 59109 | 60430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/34 | 17907 | 18042 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/34 | 10915 | 11158 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/35 | 12034 | 12303 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/35 | 21739 | 22225 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/01/36 | 15608 | 15957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/39 | 104770 | 106323 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/01/33 | 77887 | 79926 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/01/34 | 51480 | 53156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/01/34 | 8662 | 8700 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/01/34 | 8924 | 9053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 05/01/35 | 14119 | 14191 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/01/35 | 13373 | 13430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/01/35 | 16867 | 16976 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/34 | 34798 | 35486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/34 | 17394 | 17752 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/34 | 108641 | 112020 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/01/34 | 2061 | 2100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/01/35 | 14257 | 14772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/35 | 16711 | 17302 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/35 | 17562 | 18212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/36 | 8142 | 8279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/01/37 | 32957 | 34016 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/01/37 | 10502 | 10718 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/34 | 7911 | 8113 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/01/34 | 26834 | 27676 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac 30 Yr. Gold Pool | Freddie Mac 30 Yr. Gold Pool | Freddie Mac 30 Yr. Gold Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/01/34 | 16065 | $16477 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 11/01/34 | 34994 | 35955 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/37 | 14477 | 14856 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/01/37 | 16509 | 17131 |
|  Freddie Mac 30 Yr. Pool | Freddie Mac 30 Yr. Pool | Freddie Mac 30 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 03/01/51 | 114839 | 89300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 28948 | 23602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/52 | 542525 | 444222 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/52 | 619387 | 504331 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/48 | 66363 | 57142 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/51 | 172630 | 146657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 35377 | 30032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 272818 | 232568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 2881742 | 2444632 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 425941 | 362215 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/52 | 100000 | 84715 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/52 | 711559 | 602944 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/48 | 42331 | 37660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/50 | 18923 | 16847 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/52 | 336462 | 295496 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/52 | 373818 | 328488 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/52 | 532777 | 467619 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/52 | 190905 | 167607 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/46 | 390664 | 362485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/52 | 113188 | 103634 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/47 | 209912 | 198851 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/52 | 549946 | 515869 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/35 | 38082 | 38755 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/52 | 582440 | 574952 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/01/36 | 13257 | 13464 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 10/01/34 | 25656 | 26549 |
|  Freddie Mac Multifamily Structured Pass-Through Certificates<br>0.196%, 11/25/27 (b) (c) | 5207000 | 50383 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.246%, 12/25/27 (b) (c) | 3235000 | 38462 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.274%, 11/25/24 (b) (c) | 4908000 | 23233 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.279%, 09/25/27 (b) (c) | 3341000 | 43334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.287%, 11/25/27 (b) (c) | 3626414 | 42346 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.290%, 12/25/27 (b) (c) | 3579000 | 49995 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.298%, 11/25/32 (b) (c) | 2640289 | 54545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.318%, 08/25/24 (b) (c) | 4897000 | 35998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.327%, 11/25/27 (b) (c) | 3287152 | 45002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.328%, 08/25/27 (b) (c) | 3107000 | 45779 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.330%, 01/25/31 (b) (c) | 1570265 | 31333 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.341%, 10/25/24 (b) (c) | 5666989 | 26165 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.349%, 11/25/31 (b) (c) | 2325421 | 60134 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.368%, 12/25/27 (b) (c) | 5599518 | 85957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.387%, 08/25/24 (b) (c) | 7872099 | 48966 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.425%, 08/25/27 (b) (c) | 2065319 | 34493 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.498%, 12/25/31 (b) (c) | 2074891 | 73550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.506%, 07/25/24 (b) (c) | 4483000 | 35188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.508%, 08/25/31 (b) (c) | 484222 | 16642 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.517%, 03/25/31 (b) (c) | 1260048 | 40552 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.536%, 09/25/31 (b) (c) | 1578796 | 57937 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.568%, 12/25/31 (b) (c) | 3517256 | 138857 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.574%, 07/25/27 (b) (c) | 3790354 | 82007 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Freddie Mac Multifamily Structured Pass-Through Certificates |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.597%, 07/25/24 (b) (c) | 1339717 | $9008 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.639%, 06/25/27 (b) (c) | 4356000 | 114163 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.733%, 03/25/31 (b) (c) | 539591 | 26051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.749%, 06/25/27 (b) (c) | 1446501 | 38812 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.781%, 01/25/31 (b) (c) | 658188 | 32846 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.856%, 09/25/31 (b) (c) | 453515 | 26626 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.904%, 04/25/24 (b) (c) | 1297761 | 12154 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.936%, 01/25/31 (b) (c) | 441180 | 26373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.938%, 07/25/31 (b) (c) | 361575 | 22893 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.081%, 11/25/30 (b) (c) | 400945 | 27245 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.091%, 07/25/29 (b) (c) | 255862 | 14567 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.144%, 08/25/29 (b) (c) | 1585600 | 94434 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.170%, 09/25/30 (b) (c) | 229735 | 16541 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.217%, 05/25/31 (b) (c) | 240722 | 19143 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.342%, 06/25/30 (b) (c) | 396103 | 32021 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.600%, 08/25/30 (b) (c) | 357560 | 34997 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.665%, 05/25/30 (b) (c) | 384386 | 37869 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.798%, 05/25/30 (b) (c) | 1002928 | 107048 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.801%, 04/25/30 (b) (c) | 300000 | 31587 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.868%, 04/25/30 (b) (c) | 808011 | 86086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.060%, 07/25/23 (c) | 59000 | 58420 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.111%, 02/25/23 | 149237 | 148771 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 04/25/23 (c) | 605951 | 603584 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.320%, 02/25/23 (c) | 151883 | 151389 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.458%, 08/25/23 (c) | 557370 | 552174 |
|  Freddie Mac REMICS (CMO)<br>3.000%, 07/15/39 | 39389 | 36415 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/15/40 (b) | 13952 | 1244 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/15/40 | 52314 | 52503 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 02/15/36 (b) | 17790 | 2924 |
|  Ginnie Mae I 30 Yr. Pool<br>3.500%, 12/15/41 | 207740 | 195370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/15/42 | 37765 | 35516 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/15/33 | 27050 | 26680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/15/39 | 62427 | 61968 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/15/40 | 88747 | 87931 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/40 | 90618 | 88904 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/15/40 | 29401 | 28943 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/15/34 | 9436 | 9625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/15/34 | 23345 | 23813 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/15/34 | 7734 | 7835 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/15/35 | 5841 | 5889 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/15/32 | 42815 | 43469 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 08/15/33 | 62464 | 63523 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/15/33 | 45159 | 47548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 09/15/34 | 28040 | 28957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/15/35 | 7508 | 7633 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/15/28 | 12637 | 13034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/15/31 | 7276 | 7510 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/15/32 | 838 | 860 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/15/32 | 64035 | 67868 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/15/33 | 510 | 528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/15/33 | 1003 | 1031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/15/33 | 63999 | 67797 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
|  Ginnie Mae I 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/15/33 | 434 | $| 445 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/15/34 | 26656 |  | 27683 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/15/34 | 17846 |  | 18314 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/15/38 | 44052 |  | 46056 |
|  Ginnie Mae II 30 Yr. Pool<br>2.000%, 01/20/52 | 1224519 |  | 1026140 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/20/51 | 282794 |  | 245621 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/20/51 | 1152378 |  | 1000276 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/20/51 | 1070059 |  | 927311 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/20/52 | 1657034 |  | 1435576 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/20/52 | 620000 |  | 537354 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/45 | 87303 |  | 79696 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/46 | 39218 |  | 35657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/20/46 | 42884 |  | 38772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/46 | 97903 |  | 88613 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/47 | 459780 |  | 415901 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/48 | 645119 |  | 582957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/20/48 | 38654 |  | 34810 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/48 | 13358 |  | 12028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/51 | 179695 |  | 160683 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/20/52 | 164524 |  | 146499 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/20/52 | 222078 |  | 197745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/20/52 | 246660 |  | 219633 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/52 | 473823 |  | 422378 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/43 | 222967 |  | 210072 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/43 | 277685 |  | 261625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/20/47 | 37873 |  | 35258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/48 | 442846 |  | 412568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/20/41 | 245877 |  | 236631 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/20/41 | 61707 |  | 59623 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/20/41 | 49663 |  | 47987 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/20/42 | 63388 |  | 61658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/52 | 99245 |  | 93920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/20/52 | 821085 |  | 777028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/20/33 | 4609 |  | 4600 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/20/33 | 3092 |  | 3086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/20/34 | 1822 |  | 1818 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/35 | 14938 |  | 14909 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/20/41 | 69356 |  | 69220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/20/52 | 1538977 |  | 1493163 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/20/52 | 674933 |  | 654841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/20/52 | 725000 |  | 703380 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/20/33 | 11360 |  | 11594 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/20/52 | 372484 |  | 369183 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/20/52 | 2096280 |  | 2077705 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, TBA (d) | 775000 |  | 779334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/20/35 | 15383 |  | 16244 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/20/35 | 7735 |  | 8166 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/20/35 | 13740 |  | 14509 |
|  Government National Mortgage Association (CMO) | Government National Mortgage Association (CMO) | Government National Mortgage Association (CMO) | Government National Mortgage Association (CMO) |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.586%, 02/16/59 (b) (c) | 782724 |  | 27224 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/41 | 50337 |  | 49033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/20/41 | 32348 |  | 31562 |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool | Uniform Mortgage-Backed Securities 30 Yr. Pool | Uniform Mortgage-Backed Securities 30 Yr. Pool | Uniform Mortgage-Backed Securities 30 Yr. Pool |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, TBA (d) | 2275000 |  | 1850622 |
|  |  |  | 77990169 |
| **U.S. Treasury—6.3%** |  |  |  |
|  U.S. Treasury Bonds |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 11/15/40 | 2500000 |  | 1625293 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 08/15/41 | 2600000 |  | 1779274 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 11/15/51 | 650000 |  | 411684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.250%, 02/15/52 | 2200000 |  | 1529859 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 02/15/42 | 1800000 |  | 1374328 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 11/15/49 | 11245000 |  | 8127148 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/15/45 | 68000 |  | 51194 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 05/15/43 | 2550000 |  | 2081338 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 11/15/46 | 2439000 |  | 1954344 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/15/48 | 2000000 |  | 1639297 |
|  U.S. Treasury Notes | U.S. Treasury Notes | U.S. Treasury Notes | U.S. Treasury Notes |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 11/30/25 (e) | 9700000 |  | 8676195 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 01/31/25 (f) | 3650000 |  | 3430430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/31/27 | 7500000 |  | 7037988 |
|  |  |  | 39718372 |
|  Total U.S. Treasury & Government Agencies <br>(Cost $134,446,441) |  |  | 117708541 |
| **Corporate Bonds & Notes—13.4%** | **Corporate Bonds & Notes—13.4%** | **Corporate Bonds & Notes—13.4%** | **Corporate Bonds & Notes—13.4%** |
| **Aerospace/Defense—0.1%** |  |  |  |
|  BAE Systems plc<br>3.400%, 04/15/30 (144A) | 336000 |  | 296491 |
|  Raytheon Technologies Corp.<br>4.125%, 11/16/28 | 502000 |  | 480468 |
|  |  |  | 776959 |
| **Agriculture—0.2%** |  |  |  |
|  BAT International Finance plc<br>4.448%, 03/16/28 | 1224000 |  | 1133621 |
| **Auto Manufacturers—0.3%** |  |  |  |
|  General Motors Co.<br>6.750%, 04/01/46 | 298000 |  | 285694 |
|  Hyundai Capital America<br>2.650%, 02/10/25 (144A) (f) | 256000 |  | 240741 |
|  Stellantis Finance U.S., Inc.<br>2.691%, 09/15/31 (144A) | 1012000 |  | 772158 |
|  Volkswagen Group of America Finance LLC<br>3.350%, 05/13/25 (144A) | 305000 |  | 291278 |
|  |  |  | 1589871 |
| **Auto Parts & Equipment—0.1%** |  |  |  |
|  Lear Corp.<br>4.250%, 05/15/29 (f) | 217000 |  | 194875 |
|  Magna International, Inc.<br>2.450%, 06/15/30 (f) | 620000 |  | 512323 |
|  |  |  | 707198 |
| **Banks—2.6%** |  |  |  |
|  Bank of America Corp.<br>2.572%, SOFR + 1.210%, 10/20/32 (c) (f) | 961000 |  | 752657 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Banks—(Continued)** | | |
|  Bank of America Corp. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.366%, 3M LIBOR + 0.810%, 01/23/26 (c) | 527000 | $502485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/19/26 | 441000 | 420865 |
|  Barclays plc<br>2.894%, 1Y H15 + 1.300%, 11/24/32 (c) (f) | 259000 | 197250 |
|  Deutsche Bank AG<br>2.311%, SOFR + 1.219%, 11/16/27 (c) (f) | 258000 | 218754 |
|  Goldman Sachs Group, Inc. (The)<br>2.383%, SOFR + 1.248%, 07/21/32 (c) (f) | 891000 | 691335 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.600%, 02/07/30 | 667000 | 556624 |
|  HSBC Holdings plc<br>4.000%, 5Y H15 + 3.222%, 03/09/26 (c) | 200000 | 172991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.700%, 5Y H15 + 3.250%, 03/09/31 (c) (f) | 332000 | 263074 |
|  JPMorgan Chase & Co.<br>2.545%, SOFR + 1.180%, 11/08/32 (c) | 1450000 | 1146125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.739%, SOFR + 1.510%, 10/15/30 (c) | 277000 | 232297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.963%, SOFR + 1.260%, 01/25/33 (c) | 555000 | 451716 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.782%, 3M LIBOR + 1.337%, 02/01/28 (c) | 1110000 | 1037068 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.897%, 3M LIBOR + 1.220%, 01/23/49 (c) | 320000 | 245177 |
|  Macquarie Group, Ltd.<br>4.442%, SOFR + 2.405%, 06/21/33 (144A) (c) (f) | 1713000 | 1486704 |
|  Mitsubishi UFJ Financial Group, Inc.<br>2.852%, 1Y H15 + 1.100%, 01/19/33 (c) | 920000 | 732345 |
|  Morgan Stanley | Morgan Stanley | Morgan Stanley |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.699%, SOFR + 1.143%, 01/22/31 (c) | 718000 | 593317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.943%, SOFR + 1.290%, 01/21/33 (c) | 919000 | 743451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 04/29/24 (f) | 191000 | 188033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/23/25 (f) | 352000 | 343725 |
|  Northern Trust Corp.<br>6.125%, 11/02/32 (f) | 761000 | 802430 |
|  Royal Bank of Canada<br>1.150%, 06/10/25 (f) | 850000 | 778032 |
|  State Street Corp.<br>2.901%, SOFR + 2.600%, 03/30/26 (c) (f) | 108000 | 102713 |
|  Sumitomo Mitsui Financial Group, Inc.<br>2.472%, 01/14/29 (f) | 1536000 | 1293697 |
|  UBS Group AG<br>2.095%, 1Y H15 + 1.000%, 02/11/32 (144A) (c) (f) | 1883000 | 1417697 |
|  Wells Fargo & Co.<br>3.350%, SOFR + 1.500%, 03/02/33 (c) | 1499000 | 1262754 |
|  |  | 16633316 |
| **Beverages—0.4%** |  |  |
|  Anheuser-Busch InBev Worldwide, Inc.<br>4.375%, 04/15/38 (f) | 208000 | 185933 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 11/15/39 | 868000 | 1066088 |
|  Constellation Brands, Inc.<br>3.500%, 05/09/27 (f) | 456000 | 426925 |
|  Diageo Capital plc<br>2.375%, 10/24/29 | 835000 | 712335 |
|  Keurig Dr Pepper, Inc.<br>3.200%, 05/01/30 (f) | 93000 | 81044 |
|  |  | 2472325 |
| **Building Materials—0.2%** |  |  |
|  Carrier Global Corp.<br>3.377%, 04/05/40 | 665000 | 504717 |
|  Martin Marietta Materials, Inc.<br>2.500%, 03/15/30 | 56000 | 46137 |
|  Masco Corp.<br>2.000%, 02/15/31 (f) | 1141000 | 877881 |
|  Vulcan Materials Co.<br>3.500%, 06/01/30 (f) | 115000 | 101296 |
|  |  | 1530031 |
| **Chemicals—0.1%** |  |  |
|  RPM International, Inc.<br>2.950%, 01/15/32 (f) | 443000 | 349047 |
|  Sherwin-Williams Co. (The)<br>2.300%, 05/15/30 | 461000 | 378987 |
|  |  | 728034 |
| **Commercial Services—0.5%** |  |  |
|  Ashtead Capital, Inc.<br>5.500%, 08/11/32 (144A) | 764000 | 736640 |
|  ERAC USA Finance LLC<br>7.000%, 10/15/37 (144A) (f) | 602000 | 654020 |
|  Experian Finance plc<br>4.250%, 02/01/29 (144A) | 533000 | 491710 |
|  Global Payments, Inc. | Global Payments, Inc. | Global Payments, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.200%, 03/01/26 (f) | 583000 | 508176 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.900%, 11/15/31 (f) | 467000 | 368262 |
|  RELX Capital, Inc.<br>3.000%, 05/22/30 | 174000 | 148274 |
|  Verisk Analytics, Inc.<br>4.125%, 03/15/29 (f) | 570000 | 533595 |
|  |  | 3440677 |
| **Cosmetics/Personal Care—0.1%** |  |  |
|  GSK Consumer Healthcare Capital U.S. LLC<br>3.375%, 03/24/29 (f) | 542000 | 487386 |
| **Diversified Financial Services—1.0%** |  |  |
|  AerCap Ireland Capital DAC / AerCap Global Aviation Trust<br>2.450%, 10/29/26 (f) | 1700000 | 1486551 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 07/21/27 | 320000 | 289277 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 01/16/24 (f) | 150000 | 148569 |
|  Air Lease Corp.<br>2.200%, 01/15/27 (f) | 410000 | 357298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 01/15/32 (f) | 538000 | 427403 |
|  Avolon Holdings Funding, Ltd.<br>3.250%, 02/15/27 (144A) (f) | 640000 | 547702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 05/01/26 (144A) | 215000 | 195896 |
|  Capital One Financial Corp.<br>3.273%, SOFR + 1.790%, 03/01/30 (c) | 1091000 | 932772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 03/09/27 (f) | 554000 | 526417 |
|  Intercontinental Exchange, Inc.<br>2.100%, 06/15/30 (f) | 657000 | 535999 |
|  Morgan Stanley Domestic Holdings, Inc.<br>4.500%, 06/20/28 | 310000 | 301444 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Diversified Financial Services—(Continued)** | | |
|  Raymond James Financial, Inc.<br>4.950%, 07/15/46 (f) | 696000 | $618760 |
|  |  | 6368088 |
| **Electric—0.9%** |  |  |
|  American Electric Power Co., Inc.<br>5.950%, 11/01/32 (f) | 368000 | 384235 |
|  Brazos Securitization LLC<br>5.243%, 05/13/80 | 448000 | 430459 |
|  Duke Energy Corp.<br>2.650%, 09/01/26 (f) | 99000 | 91438 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/15/32 (f) | 875000 | 819613 |
|  Enel Finance International NV<br>6.800%, 10/14/25 (144A) | 315000 | 323451 |
|  Evergy, Inc.<br>2.900%, 09/15/29 | 505000 | 436087 |
|  Exelon Corp.<br>4.050%, 04/15/30 | 533000 | 494836 |
|  FirstEnergy Corp.<br>3.400%, 03/01/50 | 330000 | 217734 |
|  Georgia Power Co.<br>3.700%, 01/30/50 | 44000 | 32758 |
|  Jersey Central Power & Light Co.<br>2.750%, 03/01/32 (144A) | 275000 | 222072 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 01/15/26 (144A) (f) | 422000 | 407592 |
|  Oncor Electric Delivery Co. LLC<br>5.750%, 03/15/29 | 646000 | 669984 |
|  Pacific Gas and Electric Co. | Pacific Gas and Electric Co. | Pacific Gas and Electric Co. |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.100%, 08/01/27 (f) | 145000 | 123835 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/31 | 466000 | 361563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/15/28 (f) | 418000 | 361362 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.300%, 08/01/40 (f) | 283000 | 191610 |
|  Xcel Energy, Inc.<br>3.400%, 06/01/30 (f) | 297000 | 264940 |
|  |  | 5833569 |
| **Electronics—0.1%** |  |  |
|  Arrow Electronics, Inc.<br>2.950%, 02/15/32 (f) | 749000 | 590535 |
| **Entertainment—0.1%** |  |  |
|  Warnermedia Holdings, Inc.<br>5.050%, 03/15/42 (144A) (f) | 564000 | 431506 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.141%, 03/15/52 (144A) (f) | 493000 | 358395 |
|  |  | 789901 |
| **Environmental Control—0.0%** |  |  |
|  Republic Services, Inc.<br>1.450%, 02/15/31 | 272000 | 209691 |
| **Gas—0.2%** |  |  |
|  APT Pipelines, Ltd.<br>4.200%, 03/23/25 (144A) | 1100000 | 1062130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 07/15/27 (144A) | 84000 | 78442 |
| **Gas—(Continued)** |  |  |
|  East Ohio Gas Co. (The)<br>2.000%, 06/15/30 (144A) | 365000 | 287077 |
|  NiSource, Inc.<br>5.650%, 02/01/45 | 136000 | 132696 |
|  |  | 1560345 |
| **Healthcare-Products—0.1%** |  |  |
|  Alcon Finance Corp.<br>2.600%, 05/27/30 (144A) (f) | 200000 | 169863 |
|  Boston Scientific Corp.<br>2.650%, 06/01/30 (f) | 470000 | 401469 |
|  |  | 571332 |
| **Healthcare-Services—0.6%** |  |  |
|  Adventist Health System<br>5.430%, 03/01/32 | 731000 | 720006 |
|  HCA, Inc.<br>4.125%, 06/15/29 (f) | 567000 | 517609 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 03/15/42 (144A) | 348000 | 277080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 06/15/39 (f) | 522000 | 467077 |
|  Humana, Inc.<br>3.700%, 03/23/29 | 543000 | 497138 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 03/01/33 | 486000 | 501700 |
|  Laboratory Corp. of America Holdings<br>4.700%, 02/01/45 (f) | 152000 | 130239 |
|  Northwell Healthcare, Inc.<br>3.979%, 11/01/46 | 51000 | 39082 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.260%, 11/01/47 | 407000 | 323260 |
|  |  | 3473191 |
| **Insurance—0.7%** |  |  |
|  AIA Group, Ltd.<br>3.375%, 04/07/30 (144A) (f) | 804000 | 706717 |
|  Aon Corp.<br>3.750%, 05/02/29 (f) | 1126000 | 1038672 |
|  Brown & Brown, Inc.<br>4.200%, 03/17/32 | 618000 | 535782 |
|  Corebridge Financial, Inc.<br>3.900%, 04/05/32 (144A) (f) | 955000 | 834066 |
|  Fairfax Financial Holdings, Ltd.<br>5.625%, 08/16/32 (144A) | 870000 | 816593 |
|  Liberty Mutual Group, Inc.<br>3.951%, 10/15/50 (144A) | 331000 | 230898 |
|  |  | 4162728 |
| **Internet—0.1%** |  |  |
|  Booking Holdings, Inc.<br>4.625%, 04/13/30 (f) | 424000 | 409490 |
| **Investment Companies—0.3%** |  |  |
|  Temasek Financial I, Ltd.<br>2.375%, 01/23/23 (144A) | 1790000 | 1788015 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Lodging—0.3%** | | |
|  Las Vegas Sands Corp.<br>3.900%, 08/08/29 (f) | 257000 | $216513 |
|  Marriott International, Inc.<br>2.750%, 10/15/33 (f) | 475000 | 362381 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.850%, 04/15/31 | 2000 | 1620 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/15/28 (f) | 553000 | 513562 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 06/15/30 (f) | 582000 | 543072 |
|  |  | 1637148 |
| **Machinery-Diversified—0.2%** |  |  |
|  CNH Industrial Capital LLC<br>1.875%, 01/15/26 (f) | 135000 | 122417 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 01/15/24 | 540000 | 532247 |
|  Westinghouse Air Brake Technologies Corp.<br>3.200%, 06/15/25 | 248000 | 233479 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 09/15/28 | 660000 | 633636 |
|  |  | 1521779 |
| **Media—0.5%** |  |  |
|  Charter Communications Operating LLC / Charter Communications Operating Capital Corp.<br>3.500%, 06/01/41 | 628000 | 409201 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 04/01/53 (f) | 505000 | 389781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 05/01/47 | 132000 | 103546 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.384%, 10/23/35 | 310000 | 302184 |
|  Cox Communications, Inc.<br>1.800%, 10/01/30 (144A) | 404000 | 307237 |
|  Time Warner Cable Enterprises LLC<br>8.375%, 07/15/33 (f) | 592000 | 657621 |
|  Walt Disney Co. (The)<br>3.500%, 05/13/40 (f) | 1021000 | 821914 |
|  |  | 2991484 |
| **Mining—0.4%** |  |  |
|  Anglo American Capital plc<br>2.625%, 09/10/30 (144A) (f) | 1340000 | 1088998 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 03/16/29 (144A) | 200000 | 179557 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 04/01/30 (144A) (f) | 524000 | 520194 |
|  Glencore Funding LLC<br>2.500%, 09/01/30 (144A) | 502000 | 407468 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.850%, 04/27/31 (144A) (f) | 208000 | 170212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 05/30/23 (144A) | 416000 | 413830 |
|  |  | 2780259 |
| **Oil & Gas—0.6%** |  |  |
|  BP Capital Markets America, Inc.<br>2.721%, 01/12/32 (f) | 1226000 | 1021822 |
|  Eni S.p.A.<br>4.750%, 09/12/28 (144A) (f) | 1046000 | 1012284 |
|  Equinor ASA<br>7.750%, 06/15/23 | 100000 | 101915 |
|  Phillips 66<br>2.150%, 12/15/30 (f) | 904000 | 723811 |
| **Oil & Gas—(Continued)** |  |  |
|  Valero Energy Corp.<br>6.625%, 06/15/37 | 596000 | 634225 |
|  |  | 3494057 |
| **Pharmaceuticals—0.0%** |  |  |
|  Cigna Corp.<br>3.200%, 03/15/40 (f) | 148000 | 111659 |
| **Pipelines—0.5%** |  |  |
|  Cheniere Corpus Christi Holdings LLC<br>3.700%, 11/15/29 (f) | 514000 | 464615 |
|  Enbridge, Inc.<br>2.500%, 01/15/25 | 273000 | 258273 |
|  Energy Transfer L.P.<br>5.750%, 02/15/33 (f) | 631000 | 617345 |
|  Kinder Morgan Energy Partners L.P.<br>4.150%, 02/01/24 | 522000 | 514944 |
|  ONEOK, Inc.<br>4.950%, 07/13/47 | 729000 | 587154 |
|  Plains All American Pipeline L.P. / PAA Finance Corp.<br>3.800%, 09/15/30 (f) | 538000 | 467566 |
|  Sabine Pass Liquefaction LLC<br>4.500%, 05/15/30 (f) | 147000 | 136257 |
|  Spectra Energy Partners L.P.<br>3.375%, 10/15/26 (f) | 236000 | 219603 |
|  Targa Resources Corp.<br>4.200%, 02/01/33 (f) | 217000 | 186699 |
|  |  | 3452456 |
| **Real Estate Investment Trusts—0.7%** |  |  |
|  Boston Properties L.P.<br>2.550%, 04/01/32 (f) | 389000 | 295738 |
|  Brixmor Operating Partnership L.P.<br>4.050%, 07/01/30 | 512000 | 447900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 05/15/29 (f) | 51000 | 45597 |
|  Crown Castle, Inc.<br>1.350%, 07/15/25 (f) | 213000 | 193768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.650%, 09/01/27 (f) | 843000 | 783010 |
|  Equinix, Inc.<br>1.800%, 07/15/27 | 517000 | 442524 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/15/31 (f) | 618000 | 496558 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 11/18/24 (f) | 800000 | 761835 |
|  GLP Capital L.P. / GLP Financing II, Inc.<br>5.300%, 01/15/29 | 513000 | 485472 |
|  Realty Income Corp.<br>3.250%, 01/15/31 | 153000 | 132676 |
|  |  | 4085078 |
| **Retail—0.3%** |  |  |
|  Alimentation Couche-Tard, Inc.<br>3.439%, 05/13/41 (144A) | 619000 | 440619 |
|  Best Buy Co., Inc.<br>4.450%, 10/01/28 (f) | 587000 | 564975 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Retail—(Continued)** | | | |
|  Genuine Parts Co.<br>2.750%, 02/01/32 (f) | 814000 | $| 653339 |
|  |  |  | 1658933 |
| **Semiconductors—0.4%** |  |  |  |
|  Broadcom, Inc.<br>3.187%, 11/15/36 (144A) | 803000 |  | 576785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.469%, 04/15/34 (144A) | 347000 |  | 276813 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.150%, 11/15/30 | 153000 |  | 137111 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.300%, 11/15/32 | 395000 |  | 348130 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.926%, 05/15/37 (144A) | 208000 |  | 181452 |
|  NXP B.V. / NXP Funding LLC / NXP USA, Inc.<br>2.500%, 05/11/31 (f) | 651000 |  | 518508 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 05/11/41 | 558000 |  | 389340 |
|  |  |  | 2428139 |
| **Shipbuilding—0.0%** |  |  |  |
|  Huntington Ingalls Industries, Inc.<br>3.844%, 05/01/25 | 158000 |  | 152661 |
| **Software—0.2%** |  |  |  |
|  Fiserv, Inc.<br>2.650%, 06/01/30 (f) | 198000 |  | 166446 |
|  Oracle Corp.<br>6.150%, 11/09/29 (f) | 273000 |  | 283365 |
|  Roper Technologies, Inc.<br>2.000%, 06/30/30 | 422000 |  | 338189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.950%, 09/15/29 | 128000 |  | 111319 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 09/15/28 (f) | 222000 |  | 214417 |
|  |  |  | 1113736 |
| **Telecommunications—0.5%** |  |  |  |
|  Rogers Communications, Inc.<br>3.800%, 03/15/32 (144A) | 1514000 |  | 1306511 |
|  T-Mobile USA, Inc. | T-Mobile USA, Inc. | T-Mobile USA, Inc. | T-Mobile USA, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.050%, 02/15/28 (f) | 557000 |  | 478369 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/15/50 | 57000 |  | 46862 |
|  Verizon Communications, Inc.<br>3.150%, 03/22/30 | 310000 |  | 273371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.272%, 01/15/36 | 459000 |  | 408595 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.812%, 03/15/39 (f) | 573000 |  | 524864 |
|  |  |  | 3038572 |
| **Tobacco—0.1%** |  |  |  |
|  Philip Morris International, Inc.<br>5.125%, 11/17/27 | 250000 |  | 251826 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 11/17/29 | 108000 |  | 109564 |
|  |  |  | 361390 |
|  Total Corporate Bonds & Notes <br>(Cost $97,378,518) |  |  | 84083654 |
| **Asset-Backed Securities—4.7%** | **Asset-Backed Securities—4.7%** | **Asset-Backed Securities—4.7%** | **Asset-Backed Securities—4.7%** |
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Automobile—0.1%** |  |  |  |
|  Credit Acceptance Auto Loan Trust<br>1.380%, 07/15/30 (144A) | 328000 |  | 300934 |
|  Santander Drive Auto Receivables Trust<br>4.370%, 05/15/25 | 129000 |  | 128277 |
|  Santander Retail Auto Lease Trust<br>1.880%, 03/20/24 (144A) | 93586 |  | 93433 |
|  |  |  | 522644 |
| **Asset-Backed - Home Equity—0.1%** |  |  |  |
|  Bayview Financial Revolving Asset Trust<br>5.989%, 1M LIBOR + 1.600%, 12/28/40 (144A) (c) | 167093 |  | 221402 |
|  GMAC Home Equity Loan Trust<br>5.805%, 10/25/36 (c) | 30894 |  | 30366 |
|  Home Equity Loan Trust<br>4.223%, 12/25/35 (c) | 20344 |  | 20175 |
|  |  |  | 271943 |
| **Asset-Backed - Other—4.5%** |  |  |  |
|  ACRES Commercial Realty, Ltd.<br>6.076%, 1M LIBOR + 1.750%, 01/15/37 (144A) (c) | 535500 |  | 503115 |
|  Allegro CLO IV, Ltd.<br>5.629%, 3M LIBOR + 1.550%, 01/15/30 (144A) (c) | 702748 |  | 684046 |
|  American Tower Trust I<br>3.070%, 03/15/48 (144A) | 876000 |  | 871095 |
|  Arbor Realty Commercial Real Estate Notes, Ltd.<br>5.470%, 1M LIBOR + 1.200%, 12/15/35 (144A) (c) | 625000 |  | 573530 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.907%, SOFR30A + 2.100%, 01/15/37 (144A) (c) | 1466500 |  | 1402005 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.918%, 1M LIBOR + 1.600%, 08/15/34 (144A) (c) | 522000 |  | 475049 |
|  BDS, Ltd.<br>5.426%, 1M LIBOR + 1.100%, 08/15/36 (144A) (c) | 14193 |  | 14193 |
|  BSPRT Issuer, Ltd.<br>5.618%, 1M LIBOR + 1.300%, 03/15/36 (144A) (c) | 1463000 |  | 1399428 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.857%, SOFR30A + 2.050%, 02/15/37 (144A) (c) | 524000 |  | 499723 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.368%, 1M LIBOR + 2.050%, 12/15/38 (144A) (c) | 245000 |  | 227433 |
|  Business Jet Securities LLC<br>2.162%, 04/15/36 (144A) | 323619 |  | 284155 |
|  CHCP FL1, Ltd.<br>5.740%, 1M TSFR + 1.414%, 02/15/38 (144A) (c) | 650500 |  | 628099 |
|  Columbia Cent CLO 28, Ltd.<br>6.232%, 3M LIBOR + 1.700%, 11/07/30 (144A) (c) | 1026773 |  | 983556 |
|  Cutwater, Ltd.<br>5.299%, 3M LIBOR + 1.220%, 01/15/29 (144A) (c) | 500621 |  | 497254 |
|  Dryden 55 CLO, Ltd.<br>5.099%, 3M LIBOR + 1.020%, 04/15/31 (144A) (c) | 1430000 |  | 1410613 |
|  Dryden Senior Loan Fund<br>4.979%, 3M LIBOR + 0.900%, 04/15/29 (144A) (c) | 597217 |  | 590022 |
|  Ladder Capital Commercial Mortgage Trust<br>6.218%, 1M LIBOR + 1.900%, 12/13/38 (144A) (c) | 682500 |  | 655248 |
|  Loancore Issuer, Ltd.<br>6.068%, 1M LIBOR + 1.750%, 07/15/36 (144A) (c) | 1547500 |  | 1454642 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.218%, 1M LIBOR + 1.900%, 11/15/38 (144A) (c) | 3913500 |  | 3649754 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **<br>Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Other—(Continued)** | | | |
|  MF1, Ltd.<br>5.776%, SOFR30A + 1.950%, 02/19/37 (144A) (c) | 650507 | $| 614691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.150%, 1M TSFR + 1.814%, 11/15/35 (144A) (c) | 363511 |  | 356282 |
|  MidOcean Credit CLO II<br>6.065%, 3M LIBOR + 1.650%, 01/29/30 (144A) (c) | 1156232 |  | 1116600 |
|  Neuberger Berman CLO XV<br>5.429%, 3M LIBOR + 1.350%, 10/15/29 (144A) (c) | 508944 |  | 492273 |
|  Neuberger Berman CLO XX, Ltd.<br>5.239%, 3M LIBOR + 1.160%, 07/15/34 (144A) (c) | 600000 |  | 584374 |
|  Oaktree CLO, Ltd.<br>6.075%, 3M LIBOR + 1.750%, 04/22/30 (144A) (c) | 1503087 |  | 1439179 |
|  OCP CLO, Ltd.<br>5.977%, 3M LIBOR + 1.650%, 01/26/34 (144A) (c) | 4041128 |  | 3857911 |
|  OneMain Financial Issuance Trust<br>5.940%, 05/15/34 | 427000 |  | 425106 |
|  Small Business Administration Participation Certificates<br>4.350%, 07/01/23 | 12071 |  | 12034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.770%, 04/01/24 | 986 |  | 971 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 03/01/25 | 9191 |  | 9196 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.990%, 09/01/24 | 3869 |  | 3802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.110%, 08/01/25 | 12590 |  | 12470 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.180%, 05/01/24 | 1285 |  | 1271 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.520%, 06/01/24 | 3014 |  | 3015 |
|  STWD, Ltd.<br>5.607%, SOFR30A + 1.800%, 11/15/38 (144A) (c) | 1507000 |  | 1466234 |
|  Verizon Owner Trust<br>1.980%, 07/22/24 | 782000 |  | 774541 |
|  Voya, Ltd.<br>5.529%, 3M LIBOR + 1.450%, 10/15/30 (144A) (c) | 584168 |  | 554812 |
|  |  |  | 28527722 |
|  Total Asset-Backed Securities <br>(Cost $30,578,638) |  |  | 29322309 |
| **Mortgage-Backed Securities—1.8%** |  |  |  |
| **Collateralized Mortgage Obligations—0.1%** |  |  |  |
|  Seasoned Credit Risk Transfer Trust<br>3.000%, 02/25/59 | 235512 |  | 212752 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 11/25/61 | 179178 |  | 158019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/25/58 | 76410 |  | 69766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/25/58 | 181982 |  | 169087 |
|  |  |  | 609624 |
| **Commercial Mortgage-Backed Securities—1.7%** |  |  |  |
|  AREIT Trust | AREIT Trust | AREIT Trust | AREIT Trust |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.676%, SOFR30A + 1.850%, 01/16/37 (144A) (c) | 892000 |  | 819464 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.740%, 1M TSFR + 1.414%, 09/14/36 (144A) (c) | 1953000 |  | 1903500 |
|  BXMT, Ltd.<br>5.618%, 1M LIBOR + 1.300%, 05/15/38 (144A) (c) | 1532500 |  | 1462056 |
|  Commercial Mortgage Trust<br>3.708%, 07/10/48 | 1300833 |  | 1238054 |
|  CSAIL Commercial Mortgage Trust<br>3.504%, 06/15/57 | 738578 |  | 700844 |
| **Commercial Mortgage-Backed Securities—(Continued)** |  |  |  |
|  JPMBB Commercial Mortgage Securities Trust<br>3.494%, 01/15/48 | 1590000 |  | 1522420 |
|  Morgan Stanley Bank of America Merrill Lynch Trust<br>3.536%, 11/15/52 | 519442 |  | 480107 |
|  Ready Capital Mortgage Financing LLC<br>5.389%, 1M LIBOR + 1.000%, 04/25/38 (144A) (c) | 676725 |  | 656486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.189%, 1M LIBOR + 1.800%, 11/25/36 (144A) (c) | 320000 |  | 298300 |
|  Wells Fargo Commercial Mortgage Trust<br>3.540%, 05/15/48 | 1706327 |  | 1624719 |
|  |  |  | 10705950 |
|  Total Mortgage-Backed Securities <br>(Cost $12,079,573) |  |  | 11315574 |
| **Convertible Preferred Stocks—0.8%** | **Convertible Preferred Stocks—0.8%** | **Convertible Preferred Stocks—0.8%** | **Convertible Preferred Stocks—0.8%** |
| **Auto Components—0.2%** |  |  |  |
|  Aptiv plc<br>5.500%, 06/15/23 | 11000 |  | 1180520 |
| **Health Care Equipment & Supplies—0.3%** |  |  |  |
|  Boston Scientific Corp.<br>5.500%, 06/01/23 | 19658 |  | 2257132 |
| **Wireless Telecommunication Services—0.3%** |  |  |  |
|  T-Mobile U.S., Inc.<br>5.250%, 06/01/23 (144A) | 1603 |  | 1833864 |
|  Total Convertible Preferred Stocks <br>(Cost $4,686,735) |  |  | 5271516 |
| **Preferred Stocks—0.7%** | **Preferred Stocks—0.7%** | **Preferred Stocks—0.7%** | **Preferred Stocks—0.7%** |
| **Household Products—0.5%** |  |  |  |
|  Henkel AG & Co. KGaA  | 44194 |  | 3076518 |
| **Technology Hardware, Storage & Peripherals—0.2%** |  |  |  |
|  Samsung Electronics Co., Ltd.  | 36221 |  | 1457455 |
|  Total Preferred Stocks <br>(Cost $5,254,098) |  |  | 4533973 |
| **Municipals—0.4%** | **Municipals—0.4%** | **Municipals—0.4%** | **Municipals—0.4%** |
|  New Jersey Economic Development Authority<br>7.425%, 02/15/29 | 800000 |  | 861202 |
|  New Jersey Turnpike Authority<br>7.414%, 01/01/40 | 1050000 |  | 1301615 |
|  State Board of Administration Finance Corp.<br>2.154%, 07/01/30 | 436000 |  | 357002 |
|  Total Municipals <br>(Cost $2,552,005) |  |  | 2519819 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Short-Term Investment—0.9%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreement—0.9%** | | |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $5,654,145; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $5,766,085. | 5653015 | $5653015 |
|  Total Short-Term Investments <br>(Cost $5,653,015) |  | 5653015 |
| **Securities Lending Reinvestments (g)—2.1%** | **Securities Lending Reinvestments (g)—2.1%** | **Securities Lending Reinvestments (g)—2.1%** |
| **Certificate of Deposit—0.1%** |  |  |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (c) | 1000000 | 1000348 |
| **Repurchase Agreements—0.5%** |  |  |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $632,105; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $644,442. | 631806 | 631806 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $600,504; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $613,427. | 600000 | 600000 |
|  Societe Generale | Societe Generale | Societe Generale |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $100,047; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $102,181. | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $1,000,473; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.250%, maturity dates ranging from 12/31/23 - 02/15/30, and an aggregate market value of $1,020,000. | 1000000 | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $600,516; collateralized by various Common Stock with an aggregate market value of $667,915. | 600000 | 600000 |
|  |  | 2931806 |
| **Mutual Funds—1.5%** |  |  |
|  Allspring Government Money Market Fund, Select Class 4.090% (h) | 2000000 | 2000000 |
|  BlackRock Liquidity Funds FedFund, Institutional Shares 4.020% (h) | 2000000 | 2000000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (h) | 2000000 | 2000000 |
|  Morgan Stanley Liquidity Funds Government Portfolio, Institutional Shares 4.110% (h) | 500000 | 500000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class 4.120% (h) | 700000 | 700000 |
| **Mutual Funds—(Continued)** |  |  |
|  STIT-Government & Agency Portfolio, Institutional Class 4.220% (h) | 2000000 | 2000000 |
|  |  | 9200000 |
|  Total Securities Lending Reinvestments <br>(Cost $13,131,806) |  | 13132154 |
|  Total Investments—102.3% <br>(Cost $589,808,860) |  | 643127844 |
|  Other assets and liabilities (net)—(2.3)% |  | (14607645) |
| **Net Assets—100.0%** |  | $628520199 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) Interest only security.

(c) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(d) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.

(e) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2022, the market value of securities pledged was $469,588.

(f) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $24,977,750 and the collateral received consisted of cash in the amount of $13,131,806 and non-cash collateral with a value of $12,764,809. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(g) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(h) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(144A) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $56,881,649, which is 9.1% of net assets.

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional**<br>**Value** | **Notional**<br>**Value** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  U.S. Treasury Note 2 Year Futures | 03/31/23 | 35 | USD | 7177734 | $5182 |
|  U.S. Treasury Note 5 Year Futures | 03/31/23 | 192 | USD | 20722500 | (21677) |
|  U.S. Treasury Ultra Long Bond Futures | 03/22/23 | 54 | USD | 7252875 | (225922) |
| **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** | **Futures Contracts—Short** |
|  U.S. Treasury Note Ultra 10 Year Futures | 03/22/23 | (117) | USD | (13838906) | 125906 |
|  Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | $(116511) |

---

**Glossary of Abbreviations** 

Currencies

------

(USD)— United States Dollar

Index Abbreviations

------

---

| | |
|:---|:---|
| (H15)— | U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index |
| (LIBOR)— | London Interbank Offered Rate |
| (SOFR)— | Secured Overnight Financing Rate |
| (SOFR30A)— | Secured Overnight Financing Rate 30-Day Average |
| (TSFR)— | Term Secured Financing Rate |

---

Other Abbreviations

------

---

| | |
|:---|:---|
| (ADR)— | American Depositary Receipt |
| (CLO)— | Collateralized Loan Obligation |
| (CMO)— | Collateralized Mortgage Obligation |
| (DAC)— | Designated Activity Company |
| (REMIC)— | Real Estate Mortgage Investment Conduit |

---

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $9316793 | $— | $— | $9316793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | 6036791 |  |  | 6036791 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks | 30276812 |  |  | 30276812 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages | 2231752 |  |  | 2231752 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology | 1541796 |  |  | 1541796 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Products | 13001942 |  |  | 13001942 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 41168952 |  |  | 41168952 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 10289044 |  |  | 10289044 |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction Materials | 2143171 |  |  | 2143171 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributors | 3927665 |  |  | 3927665 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Electric Utilities | $15090948 | $— | $— | $15090948 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment | 13767464 |  |  | 13767464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment | 2349741 |  |  | 2349741 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Real Estate Investment Trusts | 1672057 |  |  | 1672057 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food & Staples Retailing | 4194715 |  |  | 4194715 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food Products | 6664540 | 1542795 |  | 8207335 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 6954626 |  |  | 6954626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 17821809 |  |  | 17821809 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 2638256 |  |  | 2638256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products | 1252972 |  |  | 1252972 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Conglomerates | 4331646 |  |  | 4331646 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 21713755 |  |  | 21713755 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interactive Media & Services | 4839415 |  |  | 4839415 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 14100147 |  |  | 14100147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 10021663 |  |  | 10021663 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 6105305 |  |  | 6105305 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media | 13683214 |  |  | 13683214 |
| &nbsp;&nbsp;&nbsp;&nbsp; Metals & Mining |  | 1182862 |  | 1182862 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multiline Retail | 843690 |  |  | 843690 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 20331523 |  |  | 20331523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 23369126 | 5602932 |  | 28972058 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional Services | 1439624 |  |  | 1439624 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 6061767 |  |  | 6061767 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 14097440 |  |  | 14097440 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 13962821 |  |  | 13962821 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 1009577 |  |  | 1009577 |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology Hardware, Storage & Peripherals | 1549628 |  |  | 1549628 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tobacco | 6481893 |  |  | 6481893 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wireless Telecommunication Services | 4974620 |  |  | 4974620 |
|  Total Common Stocks | 361258700 | 8328589 |  | 369587289 |
|  Total U.S. Treasury & Government Agencies\* |  | 117708541 |  | 117708541 |
|  Total Corporate Bonds & Notes\* |  | 84083654 |  | 84083654 |
|  Total Asset-Backed Securities\* |  | 29322309 |  | 29322309 |
|  Total Mortgage-Backed Securities\* |  | 11315574 |  | 11315574 |
| Convertible Preferred Stocks | Convertible Preferred Stocks | Convertible Preferred Stocks | Convertible Preferred Stocks | Convertible Preferred Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | 1180520 |  |  | 1180520 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 2257132 |  |  | 2257132 |
| &nbsp;&nbsp;&nbsp;&nbsp; Wireless Telecommunication Services |  | 1833864 |  | 1833864 |
|  Total Convertible Preferred Stocks | 3437652 | 1833864 |  | 5271516 |
|  Total Preferred Stocks\* |  | 4533973 |  | 4533973 |
|  Total Municipals\* |  | 2519819 |  | 2519819 |
|  Total Short-Term Investment\* |  | 5653015 |  | 5653015 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificate of Deposit |  | 1000348 |  | 1000348 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 2931806 |  | 2931806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 9200000 |  |  | 9200000 |
|  Total Securities Lending Reinvestments | 9200000 | 3932154 |  | 13132154 |
|  Total Investments | $373896352 | $269231492 | $— | $643127844 |
|  Collateral for Securities Loaned (Liability) | $— | $(13131806) | $— | $(13131806) |
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Appreciation) | $131088 | $— | $— | $131088 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | (247599) |  |  | (247599) |
|  Total Futures Contracts | $(116511) | $— | $— | $(116511) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $643127844 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 770649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 86647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 2262974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 2472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 646250586 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 13131806 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 778881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities purchased | 2675397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 387987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 41618 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 295294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 86768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 180379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 17730387 |
|  **Net Assets** | $628520199 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $534109560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 94410639 |
|  **Net Assets** | $628520199 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $158617223 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 154871075 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 20682785 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class F | 294349116 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 1073146 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 1069516 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 141077 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class F | 2017589 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $147.81 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 144.80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 146.61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class F | 145.89 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $589,808,860.

(b) Includes securities loaned at value of $24,977,750.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $8899867 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 8196559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 49607 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income | 5418 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 17151451 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 3810635 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 45316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 148964 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 419910 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 31321 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class F | 630438 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 66143 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 57123 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 5614 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 14440 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 5284558 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (170119) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 5114439 |
|  **Net Investment Income** | 12037012 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 35003063 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (3087816) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (19920) |
|  Net realized gain (loss) | 31895327 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (118473056) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (96071) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (6087) |
|  Net change in unrealized appreciation (depreciation) | (118575214) |
|  Net realized and unrealized gain (loss) | (86679887) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(74642875) |

---

(a) Net of foreign withholding taxes of $79,210.

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $12037012 | $10136108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 31895327 | 65506858 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (118575214) | 25564389 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (74642875) | 101207355 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (19044690) | (14379809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (19219957) | (15168069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (2383256) | (1802276) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class F | (35961907) | (28402471) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (76609810) | (59752625) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 5101489 | (17311486) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (146151196) | 24143244 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 774671395 | 750528151 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $628520199 | $774671395 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 40183 | $6481341 | 50283 | $9364727 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 134354 | 19044690 | 80936 | 14379809 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (112852) | (18101618) | (120527) | (22215358) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 61685 | $7424413 | 10692 | $1529178 |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 26320 | $3944580 | 53964 | $9861204 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 138213 | 19219957 | 86868 | 15168069 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (171754) | (26706506) | (178505) | (32329539) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (7221) | $(3541969) | (37673) | $(7300266) |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 17666 | $2678918 | 2327 | $428064 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 16937 | 2383256 | 10212 | 1802276 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (21179) | (3256187) | (16321) | (2974699) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 13424 | $1805987 | (3782) | $(744359) |
|  **Class F** | **Class F** | **Class F** | **Class F** | **Class F** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 56534 | $8750656 | 172614 | $32077914 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 256742 | 35961907 | 161616 | 28402471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (286951) | (45299505) | (389261) | (71276424) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 26325 | $(586942) | (55031) | $(10796039) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $5101489 |  | $(17311486) |

---

**BHFTII-20** 

*See accompanying notes to financial statements.* 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $186.11 | $176.57 | $172.66 | $153.14 | $177.03 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 3.11 | 2.70 | 3.23 | 3.67 | 3.68 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (21.88) | 21.69 | 11.99 | 26.62 | (12.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (18.77) | 24.39 | 15.22 | 30.29 | (9.18) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (3.10) | (3.57) | (4.17) | (4.05) | (4.04) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (16.43) | (11.28) | (7.14) | (6.72) | (10.67) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (19.53) | (14.85) | (11.31) | (10.77) | (14.71) |
|  **Net Asset Value, End of Period** | $147.81 | $186.11 | $176.57 | $172.66 | $153.14 |
|  **Total Return (%)** (b) | (9.63) | 14.22 | 9.76 | 20.37 | (5.57) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.63 | 0.62 | 0.64 | 0.63 | 0.62 |
|  Net ratio of expenses to average net assets (%) (c) | 0.60 | 0.59 | 0.64 | 0.63 | 0.62 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.96 | 1.47 | 1.97 | 2.23 | 2.20 |
|  Portfolio turnover rate (%) | 62 (d) | 92 (d) | 78 (d) | 42 (d) | 29 (d) |
|  Net assets, end of period (in millions) | $158.6 | $188.2 | $176.7 | $174.7 | $160.7 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $182.66 | $173.56 | $169.83 | $150.75 | $174.48 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.66 | 2.20 | 2.77 | 3.21 | 3.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (21.48) | 21.32 | 11.80 | 26.19 | (12.66) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (18.82) | 23.52 | 14.57 | 29.40 | (9.45) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.61) | (3.14) | (3.70) | (3.60) | (3.61) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (16.43) | (11.28) | (7.14) | (6.72) | (10.67) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (19.04) | (14.42) | (10.84) | (10.32) | (14.28) |
|  **Net Asset Value, End of Period** | $144.80 | $182.66 | $173.56 | $169.83 | $150.75 |
|  **Total Return (%)** (b) | (9.87) | 13.93 | 9.49 | 20.07 | (5.81) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.88 | 0.87 | 0.89 | 0.88 | 0.87 |
|  Net ratio of expenses to average net assets (%) (c) | 0.85 | 0.84 | 0.89 | 0.88 | 0.87 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.70 | 1.22 | 1.73 | 1.98 | 1.95 |
|  Portfolio turnover rate (%) | 62 (d) | 92 (d) | 78 (d) | 42 (d) | 29 (d) |
|  Net assets, end of period (in millions) | $154.9 | $196.7 | $193.4 | $198.8 | $207.9 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $184.72 | $175.35 | $171.52 | $152.17 | $175.98 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.85 | 2.41 | 2.97 | 3.40 | 3.41 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (21.71) | 21.55 | 11.90 | 26.45 | (12.78) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (18.86) | 23.96 | 14.87 | 29.85 | (9.37) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.82) | (3.31) | (3.90) | (3.78) | (3.77) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (16.43) | (11.28) | (7.14) | (6.72) | (10.67) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (19.25) | (14.59) | (11.04) | (10.50) | (14.44) |
|  **Net Asset Value, End of Period** | $146.61 | $184.72 | $175.35 | $171.52 | $152.17 |
|  **Total Return (%)** (b) | (9.77) | 14.05 | 9.60 | 20.19 | (5.72) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.78 | 0.77 | 0.79 | 0.78 | 0.77 |
|  Net ratio of expenses to average net assets (%) (c) | 0.75 | 0.74 | 0.79 | 0.78 | 0.77 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.81 | 1.32 | 1.83 | 2.08 | 2.05 |
|  Portfolio turnover rate (%) | 62 (d) | 92 (d) | 78 (d) | 42 (d) | 29 (d) |
|  Net assets, end of period (in millions) | $20.7 | $23.6 | $23.0 | $24.1 | $22.5 |
|  | **Class F** | **Class F** | **Class F** | **Class F** | **Class F** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $183.89 | $174.64 | $170.86 | $151.61 | $175.36 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 2.76 | 2.31 | 2.87 | 3.31 | 3.31 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (21.62) | 21.45 | 11.86 | 26.34 | (12.72) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (18.86) | 23.76 | 14.73 | 29.65 | (9.41) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (2.71) | (3.23) | (3.81) | (3.68) | (3.66) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (16.43) | (11.28) | (7.14) | (6.72) | (10.68) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (19.14) | (14.51) | (10.95) | (10.40) | (14.34) |
|  **Net Asset Value, End of Period** | $145.89 | $183.89 | $174.64 | $170.86 | $151.61 |
|  **Total Return (%)** (b) | (9.82) | 13.99 | 9.54 | 20.13 | (5.76) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.83 | 0.82 | 0.84 | 0.83 | 0.82 |
|  Net ratio of expenses to average net assets (%) (c) | 0.80 | 0.79 | 0.84 | 0.83 | 0.82 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.76 | 1.27 | 1.77 | 2.03 | 2.00 |
|  Portfolio turnover rate (%) | 62 (d) | 92 (d) | 78 (d) | 42 (d) | 29 (d) |
|  Net assets, end of period (in millions) | $294.3 | $366.2 | $357.4 | $362.6 | $344.1 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

(d) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 30%, 29%, 40%, 29%, and 28% for the years ended December 31, 2022, 2021, 2020, 2019, and
2018, respectively.

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MFS Total Return Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, E and F shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued based upon evaluated or composite bid quotations obtained from pricing services selected by the Adviser. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded

**BHFTII-23** 

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**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Futures contracts that are traded on commodity exchanges are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees"). A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. Book-tax differences are primarily due to adjustments to prior period accumulated balances. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its

**BHFTII-24** 

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**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Collateralized Obligations -** The Portfolio may invest in collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs"), other collateralized debt obligations ("CDOs"), and other similarly structured securities. CDOs, CBOs and CLOs are types of asset-backed securities. A CBO is a trust that is backed by a diversified pool of high risk, below investment grade fixed-income securities. The collateral can be from many types of fixed-income securities such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans that may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties.

For CDOs, CBOs and CLOs, the cash flow from the trust is split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is typically the "equity" or "first loss" tranche, which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches and equity tranches. Losses are first borne by the equity tranches, next by the junior tranches, and finally by the senior tranches. The risks of an investment in a CBO, CLO or other CDO depend largely on the quality and type of the collateral securities and the class of the instrument in which a Portfolio invests. If some debt instruments go into default and the cash collected by the CBO, CLO or CDO is insufficient to pay all of its investors, those in the lowest, most junior tranches suffer losses first. Since they are partially protected from defaults, senior tranches typically have higher ratings and lower potential yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, more senior tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO securities as a class.

**Mortgage-Related and Other Asset-Backed Securities -** The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities ("SMBS"), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or "IO" class), while the other class will receive all of the principal (the principal-only or "PO" class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio's Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

**Mortgage Dollar Rolls -** The Portfolio may enter into mortgage "dollar rolls" in which a Portfolio sells to-be-announced ("TBA") mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase or reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation, and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

**BHFTII-25** 

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**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**TBA Purchase and Forward Sale Commitments -** The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio's other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under "Investment Valuation and Fair Value Measurements".

**When-Issued and Delayed-Delivery Securities -** The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $5,653,015. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $2,931,806. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

**BHFTII-26** 

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**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions | Securities Lending Transactions |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes | $(10526306) | $— | $— | $— | $(10526306) |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury & Government Agencies | (2605500) |  |  |  | (2605500) |
|  **Total Borrowings** | $**(13131806)** | $**—** | $**—** | $**—** | $**(13131806)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(13131806) |

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**3. Investments in Derivative Instruments** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets &<br>Liabilities Location** | **Fair Value** | **Statement of Assets &<br>Liabilities Location** | **Fair Value** |
|  Interest Rate | Unrealized appreciation on futures contracts (a) | $131088 | Unrealized depreciation on futures contracts (a) | $247599 |

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(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

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| | |
|:---|:---|
| **Statement of Operations Location—Net Realized Gain (Loss)** | **Interest Rate** |
|  Futures contracts | $(3087816) |
| **Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)** | **Interest Rate** |
|  Futures contracts | $(96071) |

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For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

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| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Futures contracts long | $34687650 |
|  Futures contracts short | (11536995) |

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‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**BHFTII-27** 

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**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with

**BHFTII-28** 

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**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements ("MSFTA") govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

*LIBOR Replacement Risk:* Many financial instruments use or may use a floating rate based on LIBOR, which is the offered rate at which major international banks can obtain wholesale, unsecured funding. LIBOR may be a significant factor in determining the Portfolio's payment obligations under a derivative investment, the cost of financing to the Portfolio or an investment's value or return to the Portfolio, and may be used in other ways that affect the Portfolio's investment performance. In 2017, the UK Financial Conduct Authority (FCA) announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Index Average for GBP LIBOR). Various financial industry groups have been planning for the transition away from LIBOR and markets are developing in response to these new rates, but there are concerns around liquidity of the new rates and obstacles to converting certain securities and transactions to new rates. Neither the effect of the transition process nor its ultimate success can yet be known. The transition away from and eventual elimination of LIBOR may adversely affect the interest rates on amounts of any payments paid or received with respect to, and liquidity and value of, certain assets and liabilities of the Portfolio that are tied to LIBOR. These may include bank loans, floating rate securities, structured securities (including asset-backed and mortgage-backed securities), other debt securities, derivatives, and financing transactions tied to LIBOR, particularly insofar as the documentation governing such instruments does not include "fall back" provisions addressing the transition from LIBOR. The effect of any changes to, or discontinuation of, LIBOR on the Portfolio will vary depending on, among other things (1) existing fallback or termination provisions in individual contracts and (2) the extent to which industry participants adopt new reference rates and fallbacks for both legacy and new products and instruments. The Subadviser may have discretion to determine a successor or substitute reference rate, including any price or other adjustments to account for differences between the successor or substitute reference rate and previous rate. Such successor or substitute reference rate and any adjustments selected may negatively impact the Portfolio's investments, performance or financial condition, and may expose the Portfolio to additional tax, accounting and regulatory risks. The transition away from LIBOR may affect the value, liquidity or return on certain Portfolio investments, reduce the effectiveness of related transactions such as hedges, and may result in costs incurred in connection with closing out positions and entering into new trades, adversely impacting the Portfolio's overall financial condition or results of operations. The transition process may involve, among other things, increased volatility in markets for instruments that continue to rely on LIBOR. It is difficult to predict the full impact of the transition away from LIBOR and the adoption of alternative reference rates on the Portfolio.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $317449545 | $96414681 | $323659457 | $152339575 |

---

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2022 were as follows:

---

| | |
|:---|:---|
| **Purchases** | **Sales** |
| $221292996 | $253927623 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $3810635 | 0.600% | Of the first $250 million |
|  | 0.550% | Of the next $500 million |
|  | 0.500% | On amounts in excess of $750 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Massachusetts Financial Services Company (the "Subadviser") is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.070% | $200 million to $250 million |
| 0.020% | $250 million to $500 million |
| 0.050% | $500 million to $1 billion |
| 0.075% | $1 billion to $1.25 billion |
| 0.025% | $1.25 billion to $1.5 billion |
| (0.025)% | $1.5 billion to $3.84 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

During year ended December 31, 2022, the Subadviser voluntarily reimbursed the Portfolio for certain trading costs. This reimbursement amount of $5,418 is reflected as Other income in the Statement of Operations and had no impact on total return.

Certain officers and trustees of the Trust may also be officers of the Advisers; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $592342276 |
|  Gross unrealized appreciation | 100378820 |
|  Gross unrealized (depreciation) | (49593252) |
|  Net unrealized appreciation (depreciation) | $50785568 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $13064326 | $14256393 | $63545484 | $45496232 | $76609810 | $59752625 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $12436720 | $31342713 | $50783464 | $– $| 94562897 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**9. Recent Accounting Pronouncement** 

In January 2021, the FASB issued Accounting Standards Update No. 2021-01 ("ASU 2021-01"), "Reference Rate Reform (Topic 848)". ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, as regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective through December 31, 2022, for all entities. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management expects that the adoption of the guidance will not have a material impact on the Portfolio's financial statements.

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MFS Total Return Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MFS Total Return Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MFS Total Return Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

---

**BHFTII-34** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-35** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-36** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-37** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MFS Total Return Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Massachusetts Financial Services Company regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed its blended benchmark, the S&P 500 Index (60%) and Bloomberg U.S. Aggregate Bond Index (40%), for the one-year period ended October 31, 2022 and underperformed its blended benchmark for the three- and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-38** 

------

**Brighthouse Funds Trust II** 

**MFS Total Return Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the average of the Sub-advised Expense Group and above the average of the Sub-advised Expense Universe, each at the Portfolio's current size.

**BHFTII-39** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Managed by Massachusetts Financial Services Company** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, D and E shares of the MFS Value Portfolio returned -5.98%, -6.22%, -6.02%, and -6.10%, respectively. The Portfolio's benchmark, the Russell 1000 Value Index¹, returned -7.54%.

**MARKET ENVIRONMENT / CONDITIONS** 

During the past year, markets continued to grapple with the strongest global inflationary pressures in decades along with signs of slowing economic growth. Intermittent COVID-19 flareups, particularly in China, where home-grown vaccines have proved less effective than elsewhere, kept supply chains stretched for a considerable period. At the same time, the reopening of the economy in the parts of the world where the pandemic has been better contained has led to a shift in consumption patterns in favor of services, straining already tight labor markets in most developed economies, while reducing demand for manufactured goods, primarily from Asia. As a result of Russia's invasion of Ukraine, geopolitical considerations, such as sanctions and trade bans, have resulted in additional supply chain disruptions and volatile global energy prices. Taken together, these factors have contributed to market volatility.

The ripple effects from the Russian invasion further complicated the mission central banks must undertake to rein in surging inflation. Energy shocks have historically resulted in global growth slowdowns, if not pullbacks, so policymakers found themselves in the difficult position of trying to restrain inflation without tipping economies into recession. Despite the challenging macroeconomic and geopolitical environment, policymakers remained focused on controlling inflation, although investors appeared to have expected varying degrees of action from central banks. The U.S. Federal Reserve has been among the most aggressive developed market central banks, tightening policy at the fastest rate in decades, although it slowed its hiking pace at the end of the period, as did the European Central Bank. After remaining on the monetary sidelines for much of the period, the Bank of Japan widened its yield curve control band, capping the yield on its 10-year bond at 0.50%, up from 0.25%, an action investors interpreted as a first step toward monetary policy normalization.

Against an environment of still-tight labor markets, tighter global financial conditions and volatile materials prices, investor anxiety appeared to have increased over the potential that corporate profit margins may be past peak for this cycle. That said, tentative signs that supply chain bottlenecks (particularly semiconductors) may be moderating, the easing of COVID-19 restrictions in China, low levels of unemployment across developed markets and hopes that inflation levels may be near a peak were supportive factors for the macroeconomic backdrop during the period.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio outperformed its benchmark, the Russell 1000 Value Index (the "Index"), during the period. Stock selection and an underweight position in the Information Technology ("IT") sector contributed to relative performance. Within this sector, not owning shares of customer information software manager Salesforce.com and an underweight position in semiconductor company Intel, which was not held in the Portfolio at period end, aided relative results.

Security selection in both the Financials and Health Care sectors also supported relative returns. Within the Financials sector, overweight positions in insurance services providers Progressive and Chubb bolstered relative performance. Within the Health Care sector, overweight positions in global health services provider Cigna and health services company McKesson helped in relative terms.

An underweight position in the Real Estate sector further boosted relative results. However, there were no individual stocks within this sector, either in the Portfolio or in the benchmark, that were among the Portfolio's largest relative contributors during the period.

Stocks in other sectors that aided relative performance included overweight positions in global security company Northrop Grumman and oil and gas company ConocoPhillips. Additionally, not owning shares of social networking service provider Meta Platforms and diversified entertainment company Walt Disney further supported relative results.

An underweight position in the Energy sector detracted from relative performance. Here, not owning shares of integrated energy companies Exxon Mobil and Chevron weakened relative returns. Stock selection in the Materials sector also dampened relative results, led by holdings of out-of-benchmark paint and coating manufacturer Sherwin-Williams and an overweight position in coatings company PPG Industries.

Elsewhere, overweight positions in consulting and information technology services provider Accenture, cable services provider Charter Communications, power and hand tools manufacturer Stanley Black & Decker (which was not held in the Portfolio at period end), cable services provider Comcast and consumer credit reporting agency Equifax hindered relative performance. Additionally, not owning shares of insurance and investment firm Berkshire Hathaway further weighed on relative returns.

Over the trailing 12-month period, the Portfolio increased its exposure to the Energy, Consumer Discretionary, and Real Estate sectors. Conversely, the Portfolio's exposure to the Financials, IT, and Consumer Staples sectors was reduced. At the end of the period, the

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Managed by Massachusetts Financial Services Company** 

**Portfolio Manager Commentary\*—(Continued)** 

Portfolio's top overweights relative to the Index included the Industrials and Financials sectors. The Portfolio's top underweights were the Communication Services, Energy, and Real Estate sectors.

**Nevin Chitkara** 

**Katherine Cannan** 

Portfolio Managers

*Massachusetts Financial Services Company* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

¹ The Russell 1000 Value Index is an unmanaged measure of the largest capitalized U.S. domiciled companies with a less than average growth orientation. Companies in this Index generally have a low price-to-book and price-to-earnings ratio, higher dividend yields and lower forecasted growth values.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 VALUE INDEX**![LOGO](g400324g46f81.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** | **Since Inception<sup>1</sup>** |
| &nbsp;&nbsp;&nbsp;**MFS Value Portfolio** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -5.98 | 7.51 | 11.28 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -6.22 | 7.26 | 11.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class D** | -6.02 | 7.43 |  | 10.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -6.10 | 7.36 | 11.12 |  |
| &nbsp;&nbsp;&nbsp;**Russell 1000 Value Index** | -7.54 | 6.67 | 10.29 |  |

---

<sup>1</sup> Inception dates of the Class A, Class B, Class D and Class E shares are 7/20/98, 4/28/08, 4/26/13 and 4/28/08, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **JPMorgan Chase & Co.** | **3.8** |
| **Johnson & Johnson** | **3.1** |
| **Cigna Corp.** | **3.0** |
| **Northrop Grumman Corp.** | **2.7** |
| **Pfizer, Inc.** | **2.6** |
| **Honeywell International, Inc.** | **2.5** |
| **Aon plc - Class A** | **2.4** |
| **Texas Instruments, Inc.** | **2.4** |
| **Progressive Corp. (The)** | **2.3** |
| **Marsh & McLennan Cos., Inc.** | **2.3** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Financials** | **25.3** |
| **Health Care** | **19.2** |
| **Industrials** | **17.9** |
| **Information Technology** | **7.1** |
| **Utilities** | **6.8** |
| **Consumer Staples** | **5.7** |
| **Energy** | **4.7** |
| **Materials** | **4.3** |
| **Consumer Discretionary** | **4.2** |
| **Communication Services** | **3.2** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **MFS Value Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.59% | $1000.00 | $1083.60 | $3.10 |
|  | Hypothetical\* | 0.59% | $1000.00 | $1022.23 | $3.01 |
|  Class B (a) | Actual | 0.84% | $1000.00 | $1082.10 | $4.41 |
|  | Hypothetical\* | 0.84% | $1000.00 | $1020.97 | $4.28 |
|  Class D (a) | Actual | 0.69% | $1000.00 | $1083.20 | $3.62 |
|  | Hypothetical\* | 0.69% | $1000.00 | $1021.73 | $3.52 |
|  Class E (a) | Actual | 0.74% | $1000.00 | $1082.80 | $3.88 |
|  | Hypothetical\* | 0.74% | $1000.00 | $1021.48 | $3.77 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—99.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—5.2%** | **Aerospace & Defense—5.2%** | **Aerospace & Defense—5.2%** |
|  General Dynamics Corp. | 204903 | $50838483 |
|  Northrop Grumman Corp. | 140419 | 76614011 |
|  Raytheon Technologies Corp. | 195086 | 19688079 |
|  |  | 147140573 |
| **Banks—6.4%** | **Banks—6.4%** | **Banks—6.4%** |
|  Citigroup, Inc. | 646365 | 29235089 |
|  JPMorgan Chase & Co. | 803615 | 107764771 |
|  PNC Financial Services Group, Inc. (The) | 192914 | 30468837 |
|  Truist Financial Corp. | 348993 | 15017169 |
|  |  | 182485866 |
| **Beverages—2.5%** | **Beverages—2.5%** | **Beverages—2.5%** |
|  Diageo plc (a) | 1003870 | 44330184 |
|  PepsiCo, Inc. | 149652 | 27036130 |
|  |  | 71366314 |
| **Building Products—2.9%** | **Building Products—2.9%** | **Building Products—2.9%** |
|  Johnson Controls International plc | 613969 | 39294016 |
|  Masco Corp. (a) | 340542 | 15893095 |
|  Trane Technologies plc | 164575 | 27663412 |
|  |  | 82850523 |
| **Capital Markets—6.6%** | **Capital Markets—6.6%** | **Capital Markets—6.6%** |
|  BlackRock, Inc. | 53008 | 37563059 |
|  Goldman Sachs Group, Inc. (The) | 45185 | 15515625 |
|  KKR & Co., Inc. | 332463 | 15432932 |
|  Moody's Corp. | 72011 | 20063705 |
|  Morgan Stanley | 601832 | 51167757 |
|  Nasdaq, Inc. | 775551 | 47580054 |
|  |  | 187323132 |
| **Chemicals—4.3%** | **Chemicals—4.3%** | **Chemicals—4.3%** |
|  DuPont de Nemours, Inc. (a) | 577048 | 39602804 |
|  International Flavors & Fragrances, Inc. | 106101 | 11123629 |
|  PPG Industries, Inc. | 321429 | 40416482 |
|  Sherwin-Williams Co. (The) | 130511 | 30974176 |
|  |  | 122117091 |
| **Consumer Finance—1.5%** | **Consumer Finance—1.5%** | **Consumer Finance—1.5%** |
|  American Express Co. | 279248 | 41258892 |
| **Electric Utilities—5.4%** | **Electric Utilities—5.4%** | **Electric Utilities—5.4%** |
|  American Electric Power Co., Inc. (a) | 179432 | 17037068 |
|  Duke Energy Corp. | 571259 | 58833965 |
|  Exelon Corp. | 179257 | 7749280 |
|  Southern Co. (The) | 730462 | 52162292 |
|  Xcel Energy, Inc. | 258331 | 18111586 |
|  |  | 153894191 |
| **Electrical Equipment—1.4%** | **Electrical Equipment—1.4%** | **Electrical Equipment—1.4%** |
|  Eaton Corp. plc | 254126 | 39885076 |
| **Equity Real Estate Investment Trusts—1.3%** | **Equity Real Estate Investment Trusts—1.3%** | **Equity Real Estate Investment Trusts—1.3%** |
|  Prologis, Inc. | 223169 | 25157842 |
| **Equity Real Estate Investment Trusts—(Continued)** | **Equity Real Estate Investment Trusts—(Continued)** | **Equity Real Estate Investment Trusts—(Continued)** |
|  Public Storage | 37685 | 10558960 |
|  |  | 35716802 |
| **Food Products—1.9%** | **Food Products—1.9%** | **Food Products—1.9%** |
|  Archer-Daniels-Midland Co. | 113498 | 10538290 |
|  Nestle S.A. | 366073 | 42276117 |
|  |  | 52814407 |
| **Health Care Equipment & Supplies—3.8%** | **Health Care Equipment & Supplies—3.8%** | **Health Care Equipment & Supplies—3.8%** |
|  Abbott Laboratories | 390885 | 42915264 |
|  Boston Scientific Corp. (a) (b) | 734206 | 33971712 |
|  Medtronic plc | 378896 | 29447797 |
|  |  | 106334773 |
| **Health Care Providers & Services—4.6%** | **Health Care Providers & Services—4.6%** | **Health Care Providers & Services—4.6%** |
|  Cigna Corp. | 258879 | 85776968 |
|  McKesson Corp. (a) | 118453 | 44434089 |
|  |  | 130211057 |
| **Hotels, Restaurants & Leisure—1.0%** | **Hotels, Restaurants & Leisure—1.0%** | **Hotels, Restaurants & Leisure—1.0%** |
|  Marriott International, Inc. - Class A | 195142 | 29054692 |
| **Household Products—1.3%** | **Household Products—1.3%** | **Household Products—1.3%** |
|  Kimberly-Clark Corp. | 180408 | 24490386 |
|  Reckitt Benckiser Group plc | 192632 | 13401223 |
|  |  | 37891609 |
| **Industrial Conglomerates—2.5%** | **Industrial Conglomerates—2.5%** | **Industrial Conglomerates—2.5%** |
|  Honeywell International, Inc. | 328462 | 70389407 |
| **Insurance—10.8%** | **Insurance—10.8%** | **Insurance—10.8%** |
|  Aon plc - Class A | 228338 | 68533367 |
|  Chubb, Ltd. | 289123 | 63780534 |
|  Marsh & McLennan Cos., Inc. | 393037 | 65039763 |
|  Progressive Corp. (The) | 507548 | 65834051 |
|  Travelers Cos., Inc. (The) | 235016 | 44063150 |
|  |  | 307250865 |
| **IT Services—1.8%** | **IT Services—1.8%** | **IT Services—1.8%** |
|  Accenture plc - Class A | 190397 | 50805535 |
| **Life Sciences Tools & Services—2.8%** | **Life Sciences Tools & Services—2.8%** | **Life Sciences Tools & Services—2.8%** |
|  Danaher Corp. | 88998 | 23621849 |
|  Thermo Fisher Scientific, Inc. | 101246 | 55755160 |
|  |  | 79377009 |
| **Machinery—2.4%** | **Machinery—2.4%** | **Machinery—2.4%** |
|  Illinois Tool Works, Inc. | 201793 | 44454998 |
|  Otis Worldwide Corp. | 113988 | 8926400 |
|  PACCAR, Inc. | 141432 | 13997525 |
|  |  | 67378923 |
| **Media—3.2%** | **Media—3.2%** | **Media—3.2%** |
|  Charter Communications, Inc. - Class A (b) | 81912 | 27776359 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Media—(Continued)** | **Media—(Continued)** | **Media—(Continued)** |
|  Comcast Corp. - Class A | 1772457 | 61982822 |
|  |  | 89759181 |
| **Multi-Utilities—1.4%** | **Multi-Utilities—1.4%** | **Multi-Utilities—1.4%** |
|  Dominion Energy, Inc. | 636988 | 39060104 |
| **Multiline Retail—1.2%** | **Multiline Retail—1.2%** | **Multiline Retail—1.2%** |
|  Target Corp. | 236763 | 35287158 |
| **Oil, Gas & Consumable Fuels—4.7%** | **Oil, Gas & Consumable Fuels—4.7%** | **Oil, Gas & Consumable Fuels—4.7%** |
|  ConocoPhillips | 521550 | 61542900 |
|  EOG Resources, Inc. | 204965 | 26547067 |
|  Pioneer Natural Resources Co. | 202173 | 46174291 |
|  |  | 134264258 |
| **Pharmaceuticals—8.1%** | **Pharmaceuticals—8.1%** | **Pharmaceuticals—8.1%** |
|  Johnson & Johnson | 502342 | 88738714 |
|  Merck & Co., Inc. | 503685 | 55883851 |
|  Pfizer, Inc. | 1441101 | 73842015 |
|  Roche Holding AG | 32632 | 10254993 |
|  |  | 228719573 |
| **Professional Services—1.2%** | **Professional Services—1.2%** | **Professional Services—1.2%** |
|  Equifax, Inc. (a) | 174194 | 33856346 |
| **Road & Rail—2.4%** | **Road & Rail—2.4%** | **Road & Rail—2.4%** |
|  Canadian National Railway Co. | 145798 | 17332466 |
|  Union Pacific Corp. | 240398 | 49779214 |
|  |  | 67111680 |
| **Semiconductors & Semiconductor Equipment—5.3%** | **Semiconductors & Semiconductor Equipment—5.3%** | **Semiconductors & Semiconductor Equipment—5.3%** |
|  Analog Devices, Inc. | 129025 | 21163971 |
|  KLA Corp. | 91746 | 34590994 |
|  NXP Semiconductors NV | 176371 | 27871909 |
|  Texas Instruments, Inc. | 404513 | 66833638 |
|  |  | 150460512 |
| **Specialty Retail—1.9%** | **Specialty Retail—1.9%** | **Specialty Retail—1.9%** |
|  Lowe's Cos., Inc. (a) | 274060 | 54603714 |
|  Total Common Stocks <br>(Cost $1,972,763,452) |  | 2828669263 |
| **Short-Term Investment—0.3%** | **Short-Term Investment—0.3%** | **Short-Term Investment—0.3%** |
| **Repurchase Agreement—0.3%** | **Repurchase Agreement—0.3%** | **Repurchase Agreement—0.3%** |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $7,979,217; collateralized by U.S. Treasury Obligations with rates ranging from 2.000% - 2.375%, maturity dates ranging from 04/30/24 - 05/15/51, and an aggregate market value of $8,137,234. | 7977621 | 7977621 |
|  Total Short-Term Investments <br>(Cost $7,977,621) |  | 7977621 |
| **Securities Lending Reinvestments (c)—4.2%** | **Securities Lending Reinvestments (c)—4.2%** | **Securities Lending Reinvestments (c)—4.2%** |
| **Security Description** | **<br>Principal<br>Amount\*** | **Value** |
| **Certificates of Deposit—1.2%** | **Certificates of Deposit—1.2%** | **Certificates of Deposit—1.2%** |
|  Bank of Montreal <br>5.090%, SOFR + 0.790%, 11/08/23 (d) | 2000000 | 2002702 |
|  Bank of Montreal (Chicago) <br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (d) | 5000000 | 5000000 |
|  Bank of Nova Scotia <br>4.810%, SOFR + 0.510%, 03/15/23 (d) | 2000000 | 2000841 |
|  BNP Paribas S.A. <br>4.810%, SOFR + 0.510%, 03/15/23 (d) | 3000000 | 3001044 |
|  Canadian Imperial Bank of Commerce (NY) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.550%, SOFR + 0.250%, 02/03/23 (d) | 2000000 | 2000132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (d) | 3000000 | 3001148 |
|  Citibank N.A. <br>4.680%, SOFR + 0.380%, 03/27/23 (d) | 2000000 | 2000142 |
|  Mitsubishi UFJ Trust and Banking Corp. <br>4.860%, SOFR + 0.560%, 02/14/23 (d) | 4000000 | 4001200 |
|  Mizuho Bank, Ltd. <br>4.850%, SOFR + 0.550%, 01/26/23 (d) | 2000000 | 2000601 |
|  Royal Bank of Canada <br>4.550%, SOFR + 0.250%, 01/11/23 (d) | 2000000 | 1999968 |
|  Sumitomo Mitsui Banking Corp. <br>4.710%, SOFR + 0.410%, 03/06/23 (d) | 2000000 | 2000220 |
|  Sumitomo Mitsui Trust Bank, Ltd. <br>4.750%, SOFR + 0.450%, 02/24/23 (d) | 3000000 | 3000984 |
|  Toronto-Dominion Bank (The) <br>4.550%, SOFR + 0.250%, 02/09/23 (d) | 1000000 | 999956 |
|  Westpac Banking Corp. <br>4.530%, SOFR + 0.230%, 02/17/23 (d) | 2000000 | 1999780 |
|  |  | 35008718 |
| **Commercial Paper—0.1%** | **Commercial Paper—0.1%** | **Commercial Paper—0.1%** |
|  Macquarie Bank Ltd. <br>4.880%, SOFR + 0.580%, 02/03/23 (d) | 3000000 | 3000810 |
| **Repurchase Agreements—1.9%** | **Repurchase Agreements—1.9%** | **Repurchase Agreements—1.9%** |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $19,742,153; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $20,127,469. | 19732812 | 19732812 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $4,100,106; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $4,080,001. | 4000000 | 4000000 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $2,040,963. | 2000000 | 2000000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (c)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** |
|  National Bank of Canada<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $7,706,468; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $7,872,312. | 7700000 | $7700000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $5,004,326; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $5,444,143. | 5000000 | 5000000 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $1,004,521; collateralized by various Common Stock with an aggregate market value of $1,111,255. | 1000000 | 1000000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,100,992; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $2,145,793. | 2100000 | 2100000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $2,000,947; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.250%, maturity dates ranging from 12/31/23 - 02/15/30, and an aggregate market value of $2,040,000. | 2000000 | 2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $3,001,463; collateralized by various Common Stock with an aggregate market value of $3,338,541. | 3000000 | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $8,704,263; collateralized by various Common Stock with an aggregate market value of $9,683,045. | 8700000 | 8700000 |
|  |  | 55232812 |
| **Time Deposit—0.1%** | **Time Deposit—0.1%** | **Time Deposit—0.1%** |
|  National Bank of Canada <br>4.370%, OBFR + 0.050%, 01/06/23 (d) | 3000000 | 3000000 |
| **Mutual Funds—0.9%** | **Mutual Funds—0.9%** | **Mutual Funds—0.9%** |
|  BlackRock Liquidity Funds FedFund, Institutional Shares <br>4.020% (e) | 5000000 | 5000000 |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class <br>4.170% (e) | 2000000 | 2000000 |
|  Fidelity Investments Money Market Government Portfolio, Institutional Class <br>4.100% (e) | 5000000 | 5000000 |
|  SSGA Institutional U.S. Government Money Market Fund, Premier Class <br>4.120% (e) | 5000000 | 5000000 |
| **Mutual Funds—(Continued)** | **Mutual Funds—(Continued)** | **Mutual Funds—(Continued)** |
|  STIT-Government & Agency Portfolio, Institutional Class <br>4.220% (e) | 8000000 | 8000000 |
|  |  | 25000000 |
|  Total Securities Lending Reinvestments <br>(Cost $121,232,812) |  | 121242340 |
|  Total Investments—104.3% <br>(Cost $2,101,973,885) |  | 2957889224 |
|  Other assets and liabilities (net)—(4.3)% |  | (122133832) |
| **Net Assets—100.0%** |  | $2835755392 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $118,309,524 and the collateral received consisted of cash in the amount of $121,232,812. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments.

(b) Non-income producing security.

(c) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(d) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(e) The rate shown represents the annualized seven-day yield as of December 31, 2022.

**Glossary of Abbreviations** 

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $147140573 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $147140573 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks | 182485866 |  |  | 182485866 |
| &nbsp;&nbsp;&nbsp;&nbsp; Beverages | 27036130 | 44330184 |  | 71366314 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Products | 82850523 |  |  | 82850523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 187323132 |  |  | 187323132 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 122117091 |  |  | 122117091 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Finance | 41258892 |  |  | 41258892 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electric Utilities | 153894191 |  |  | 153894191 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment | 39885076 |  |  | 39885076 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Real Estate Investment Trusts | 35716802 |  |  | 35716802 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food Products | 10538290 | 42276117 |  | 52814407 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 106334773 |  |  | 106334773 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 130211057 |  |  | 130211057 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 29054692 |  |  | 29054692 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products | 24490386 | 13401223 |  | 37891609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Conglomerates | 70389407 |  |  | 70389407 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 307250865 |  |  | 307250865 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 50805535 |  |  | 50805535 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 79377009 |  |  | 79377009 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 67378923 |  |  | 67378923 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media | 89759181 |  |  | 89759181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multi-Utilities | 39060104 |  |  | 39060104 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multiline Retail | 35287158 |  |  | 35287158 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 134264258 |  |  | 134264258 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 218464580 | 10254993 |  | 228719573 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional Services | 33856346 |  |  | 33856346 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 67111680 |  |  | 67111680 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 150460512 |  |  | 150460512 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 54603714 |  |  | 54603714 |
|  Total Common Stocks | 2718406746 | 110262517 |  | 2828669263 |
|  Total Short-Term Investment\* |  | 7977621 |  | 7977621 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 35008718 |  | 35008718 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 3000810 |  | 3000810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 55232812 |  | 55232812 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposit |  | 3000000 |  | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 25000000 |  |  | 25000000 |
|  Total Securities Lending Reinvestments | 25000000 | 96242340 |  | 121242340 |
|  Total Investments | $2743406746 | $214482478 | $— | $2957889224 |
|  Collateral for Securities Loaned (Liability) | $— | $(121232812) | $— | $(121232812) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $2957889224 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 187203 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 3940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 4145523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 11449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 2962237339 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 121232812 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 3119964 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1385130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 196099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 289903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 258039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 126481947 |
|  **Net Assets** | $2835755392 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1601204179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 1234551213 |
|  **Net Assets** | $2835755392 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1876121231 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 831260649 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 10560528 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 117812984 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 125799799 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 56813943 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 711808 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 7977826 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $14.91 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 14.63 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D | 14.84 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 14.77 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $2,101,973,885.

(b) Includes securities loaned at value of $118,309,524.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $70110538 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 232212 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 222337 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income | 31684 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 70596771 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 18807931 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 122900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 166079 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 2212775 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class D | 11092 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 184787 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 115370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 25938 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 27671 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 21775550 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (1658045) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 20117505 |
|  **Net Investment Income** | 50479266 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 328155472 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (57302) |
|  Net realized gain (loss) | 328098170 |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (602215166) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (10630) |
|  Net change in unrealized appreciation (depreciation) | (602225796) |
|  Net realized and unrealized gain (loss) | (274127626) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(223648360) |

---

(a) Net of foreign withholding taxes of $355,692.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $50479266 | $50054074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 328098170 | 436763322 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (602225796) | 336931814 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (223648360) | 823749210 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (325553922) | (61368047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (140703302) | (24087437) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class D | (1770839) | (313027) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (19633868) | (3405328) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (487661931) | (89173839) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (33328010) | (635833018) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (744638301) | 98742353 |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 3580393693 | 3481651340 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $2835755392 | $3580393693 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 3558300 | $62373937 | 2518734 | $44175049 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 23850104 | 325553922 | 3512767 | 61368047 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (26943916) | (434923735) | (33861929) | (605384887) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 464488 | $(46995876) | (27830428) | $(499841791) |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2310908 | $36958204 | 2973949 | $51063665 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 10492416 | 140703302 | 1400432 | 24087437 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (10789269) | (170456811) | (11186137) | (194130608) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 2014055 | $7204695 | (6811756) | $(118979506) |
|  **Class D** | **Class D** | **Class D** | **Class D** | **Class D** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 5410 | $86922 | 162401 | $2907729 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 130305 | 1770839 | 18000 | 313027 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (93633) | (1474422) | (250959) | (4469236) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 42082 | $383339 | (70558) | $(1248480) |
|  **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 547791 | $8963066 | 780186 | $13680459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 1451136 | 19633868 | 196499 | 3405328 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (1412098) | (22517102) | (1877776) | (32849028) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 586829 | $6079832 | (901091) | $(15763241) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(33328010) |  | $(635833018) |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $19.12 | $15.63 | $16.44 | $13.81 | $16.63 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.28 | 0.26 | 0.26 | 0.29 | 0.30 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.68) | 3.69 | 0.17 | 3.71 | (1.87) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.40) | 3.95 | 0.43 | 4.00 | (1.57) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.30) | (0.28) | (0.30) | (0.31) | (0.24) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.51) | (0.18) | (0.94) | (1.06) | (1.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.81) | (0.46) | (1.24) | (1.37) | (1.25) |
|  **Net Asset Value, End of Period** | $14.91 | $19.12 | $15.63 | $16.44 | $13.81 |
|  **Total Return (%)** (b) | (5.98) | 25.54 | 3.96 | 30.13 | (10.05) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.63 | 0.63 | 0.64 | 0.63 | 0.66 |
|  Net ratio of expenses to average net assets (%) (c) | 0.58 | 0.57 | 0.58 | 0.57 | 0.57 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.73 | 1.47 | 1.79 | 1.86 | 1.89 |
|  Portfolio turnover rate (%) | 13 | 8 | 13 | 12 | 7 |
|  Net assets, end of period (in millions) | $1876.1 | $2396.8 | $2393.8 | $2400.3 | $2144.8 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $18.81 | $15.38 | $16.20 | $13.62 | $16.41 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.23 | 0.21 | 0.22 | 0.24 | 0.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.65) | 3.64 | 0.16 | 3.67 | (1.83) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.42) | 3.85 | 0.38 | 3.91 | (1.58) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.25) | (0.24) | (0.26) | (0.27) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.51) | (0.18) | (0.94) | (1.06) | (1.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.76) | (0.42) | (1.20) | (1.33) | (1.21) |
|  **Net Asset Value, End of Period** | $14.63 | $18.81 | $15.38 | $16.20 | $13.62 |
|  **Total Return (%)** (b) | (6.22) | 25.30 | 3.66 | 29.85 | (10.24) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.88 | 0.88 | 0.89 | 0.88 | 0.91 |
|  Net ratio of expenses to average net assets (%) (c) | 0.83 | 0.82 | 0.83 | 0.82 | 0.82 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.48 | 1.22 | 1.54 | 1.61 | 1.65 |
|  Portfolio turnover rate (%) | 13 | 8 | 13 | 12 | 7 |
|  Net assets, end of period (in millions) | $831.3 | $1030.7 | $947.8 | $948.8 | $840.0 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** | **Selected per share data** |
|  | **Class D** | **Class D** | **Class D** | **Class D** | **Class D** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $19.03 | $15.56 | $16.37 | $13.76 | $16.56 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.26 | 0.24 | 0.24 | 0.27 | 0.28 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.66) | 3.67 | 0.17 | 3.69 | (1.84) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.40) | 3.91 | 0.41 | 3.96 | (1.56) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.28) | (0.26) | (0.28) | (0.29) | (0.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.51) | (0.18) | (0.94) | (1.06) | (1.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.79) | (0.44) | (1.22) | (1.35) | (1.24) |
|  **Net Asset Value, End of Period** | $14.84 | $19.03 | $15.56 | $16.37 | $13.76 |
|  **Total Return (%)** (b) | (6.02) | 25.42 | 3.85 | 29.96 | (10.06) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.73 | 0.73 | 0.74 | 0.73 | 0.76 |
|  Net ratio of expenses to average net assets (%) (c) | 0.68 | 0.67 | 0.68 | 0.67 | 0.67 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.64 | 1.37 | 1.69 | 1.76 | 1.78 |
|  Portfolio turnover rate (%) | 13 | 8 | 13 | 12 | 7 |
|  Net assets, end of period (in millions) | $10.6 | $12.7 | $11.5 | $12.6 | $11.0 |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $18.96 | $15.50 | $16.32 | $13.71 | $16.52 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.25 | 0.23 | 0.23 | 0.26 | 0.27 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.66) | 3.66 | 0.16 | 3.70 | (1.85) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.41) | 3.89 | 0.39 | 3.96 | (1.58) |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.27) | (0.25) | (0.27) | (0.29) | (0.22) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (2.51) | (0.18) | (0.94) | (1.06) | (1.01) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2.78) | (0.43) | (1.21) | (1.35) | (1.23) |
|  **Net Asset Value, End of Period** | $14.77 | $18.96 | $15.50 | $16.32 | $13.71 |
|  **Total Return (%)** (b) | (6.10) | 25.40 | 3.75 | 30.00 | (10.20) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.78 | 0.78 | 0.79 | 0.78 | 0.81 |
|  Net ratio of expenses to average net assets (%) (c) | 0.73 | 0.72 | 0.73 | 0.72 | 0.73 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.59 | 1.32 | 1.64 | 1.71 | 1.77 |
|  Portfolio turnover rate (%) | 13 | 8 | 13 | 12 | 7 |
|  Net assets, end of period (in millions) | $117.8 | $140.1 | $128.5 | $132.8 | $115.7 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts.
If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is MFS Value Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, D and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $7,977,621. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $55,232,812. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $399975233 | $0 | $864641760 |

---

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Company, the subadviser to the Portfolio, that amounted to $113,516 in purchases and $2,333,682 in sales of investments, which are included above, and resulted in net realized gains of $877,074.

**5. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, the Adviser receives monthly compensation at the following annual rates:

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net<br>Assets** |
| $18807931 | 0.700% | First $250 million |
|  | 0.650% | Of the next $500 million |
|  | 0.600% | On amounts in excess of $750 million |

---

The Adviser has entered into an investment subadvisory agreement with respect to managing the Portfolio. Massachusetts Financial Services Company (the "Subadviser") is compensated by the Adviser to provide subadvisory services for the Portfolio.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.050% | First $200 million |
| 0.075% | $200 million to $250 million |
| 0.025% | $250 million to $750 million |
| (0.025)% | $750 million to $1.5 billion |
| 0.100% | $1.5 billion to $3 billion |
| 0.125% | Over $3 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

During the year ended December 31, 2022, the Subadviser voluntarily reimbursed the Portfolio for certain trading costs. This reimbursement amount of $31,684 is reflected as Other income in the Statement of Operations and had no impact on total return.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $2103175150 |
|  Gross unrealized appreciation | 911516563 |
|  Gross unrealized (depreciation) | (56802489) |
|  Net unrealized appreciation (depreciation) | $854714074 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $56310542 | $52877640 | $431351389 | $36296199 | $487661931 | $89173839 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $50008841 | $330095514 | $854736760 | $– $| 1234841115 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the MFS Value Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the MFS Value Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the MFS Value Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-19** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

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**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*MFS Value Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Massachusetts Financial Services Company regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board further considered that the Portfolio outperformed its benchmark, the Russell 1000 Value Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**MFS Value Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board took into account that the Portfolio's contractual sub-advisory fees were below the average of the Sub-advised Expense Group and above the average of the Sub-advised Expense Universe, each at the Portfolio's current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio's sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contract holders to benefit from the lower sub-advisory fee effective January 1, 2023.

**BHFTII-25** 

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**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Managed by Neuberger Berman Investment Advisers LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Neuberger Berman Genesis Portfolio returned -19.15%, -19.32%, and -19.26%, respectively. The Portfolio's benchmark, the Russell 2000 Value Index¹, returned -14.48%.

**MARKET ENVIRONMENT / CONDITIONS** 

The U.S. stock market fell sharply during the reporting period, posting its worst return since 2008. This was driven by several factors, including elevated inflation, which reached a 40-year high in May. This triggered a sharp reversal in Federal Reserve (the "Fed") monetary policy, which included seven rate hikes in 2022 for a total of 4.25%, the most since 1980. Investor sentiment was also negatively impacted by the repercussions from war in Ukraine, supply chain issues, and the potential for the Fed's action to push the economy into a recession. All told, the Russell 2000 Index returned -20.44%, while the S&P 500 Index returned -18.11% for the 12 months ended December 31, 2022. Within the small-cap universe, the Russell 2000 Growth and Russell 2000 Value Indexes returned -26.36% and -14.48%, respectively, over the 12-month period.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio posted a negative absolute return and underperformed the Russell 2000 Value Index (the "Index") during the reporting period. Sector allocation drove the Portfolio's underperformance. Our underweight to the Energy sector was a meaningful drag on relative results, as this sector was up sharply during the year. We initiated a position in the Energy sector in the second quarter of 2022, as we saw signs that many management teams in the space have adopted more shareholder friendly capital allocation strategies after years of challenging returns. Our overweight to the Information Technology ("IT") sector also detracted from relative results. On the upside, the Portfolio's lack of exposure to real estate investment trusts ("REITs") and underweight to the biotechnology industry, which in the small-cap space tend to be lower quality in nature in our view, were additive for performance, as these industries fell sharply over the year.

Stock selection, overall, contributed to the Portfolio's relative returns during the reporting period. The Portfolio's strongest relative results were in the IT, Communication Services and Financials sectors. Within IT, our software names were the most additive for returns. Across the IT sector, our holdings are characterized by having high barriers to entry, strong free cash flow generation and attractive growth opportunities led by company-specific innovation and the mission-critical nature of their products. Conversely, many of the businesses that populate the benchmark are more speculative in nature and reliant on capital markets for growth. We have seen these sorts of stocks under meaningful pressure in 2022 as capital markets have become more discerning of businesses that have not demonstrated an ability to become profitable. Within Communication Services, our media holdings added the most value, while in Financials, our life insurance names outperformed. Conversely, stock selection in the Consumer Discretionary, Consumer Staples and Real Estate sectors were the largest drags on relative results. Within Consumer Discretionary, weakness in a few large "big ticket" positions were pressured by fears of slowing end market demand. Within Consumer Staples, our food and household product holdings negatively impacted returns. Within Real Estate, our one real estate management & development stock underperformed.

Individual holdings that were negative for the Portfolio's absolute performance included Pool Corp., West Pharmaceutical Services and Bio-Techne. Pool Corp. is a leading wholesale distributor of swimming pool supplies in the U.S. The company has scale-related advantages which lead to better and more efficient customer service, which in turn drives industry-leading growth, margins, and returns. Despite strong operating results, the stock underperformed during the period similar to other housing-related stocks, due to concerns about weakening end market demand, elevated channel inventories and normalizing gross margins. West Pharmaceutical Services is a dominant supplier of drug containment devices used for injectable drugs by pharmaceutical and biopharmaceutical companies. The stock underperformed as COVID-related revenue declined, and management relayed expectations for fiscal year 2023 COVID-related revenue to decline roughly 40% - 50%. Bio-Techne is a leading producer of proteins and antibodies for medical research. It enjoys high barriers due to the purity and consistency of its products, scale benefits, and the large breadth of offerings. The stock underperformed in the period as foreign exchange impacted its results, and the market continued to pressure higher multiple companies after meaningful outperformance in fiscal year 2021.

Examples of individual stocks that contributed to the Portfolio's absolute performance during the reporting period were Fair Isaac, Valmont Industries and Haemonetics. Fair Isaac. provides decision management tools used to automate and improve business performance. The company is most known for its industry-standard FICO score that leverages the company's data scale and predictive analytics capabilities. The stock performed well during the year following management optimism about its ability to significantly increase pricing within its Scores segment in 2023. Moreover, the Federal Housing Finance Agency announced its long-awaited decision on changes to its credit scoring, which requires both VantageScore and FICO's scores to be used in the underwriting of new loans. The net positive decision removed a longstanding overhang on the stock. Valmont Industries is a leading manufacturer of engineered, fabricated metal products, steel and aluminum pole, tower, and other structures with market-leading positions across a portfolio of duopoly/oligopoly businesses. The stock performed well, as the company delivered strong financial results. In addition, the outlook for long-term infrastructure spending benefited from the passing of the Infrastructure Investment and Jobs Act. Haemonetics is a leading supplier of blood management systems and consumables used in collecting and processing blood into its components. The stock outperformed after reporting strong financial results, management's comments on

**BHFTII-1** 

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**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Managed by Neuberger Berman Investment Advisers LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

plasma donations volume rebounding, and the company setting attractive revenue, operating profit, and earnings growth targets at its investor day.

Throughout the reporting period, we made several adjustments to the Portfolio on the margin. While the Portfolio's sector positioning is driven by bottom-up stock selection, at the end of the reporting period its largest overweight allocations versus the benchmark were IT and Industrials. In contrast, the Portfolio's largest sector underweights relative to the benchmark were Financials and Real Estate. 

**Judith M. Vale** 

**Robert W. D'Alelio** 

**Brett S. Reiner** 

**Gregory G. Spiegel** 

Portfolio Managers

*Neuberger Berman Investment Advisers LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The Russell 2000 Value Index is an unmanaged measure of performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values.

**BHFTII-2** 

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**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 VALUE INDEX**![LOGO](g400324g92c23.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Neuberger Berman Genesis Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -19.15 | 7.70 | 10.74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -19.32 | 7.43 | 10.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -19.26 | 7.53 | 10.58 |
| &nbsp;&nbsp;&nbsp;**Russell 2000 Value Index** | -14.48 | 4.13 | 8.48 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**BHFTII-3** 

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Pool Corp.** | **2.3** |
| **Bio-Techne Corp.** | **2.3** |
| **Lattice Semiconductor Corp.** | **2.3** |
| **Valmont Industries, Inc.** | **2.2** |
| **Fair Isaac Corp.** | **2.1** |
| **Nexstar Media Group, Inc.- Class A** | **1.9** |
| **Manhattan Associates, Inc.** | **1.9** |
| **Exponent, Inc.** | **1.9** |
| **RBC Bearings, Inc.** | **1.9** |
| **Chemed Corp.** | **1.8** |

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**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Industrials** | **23.8** |
| **Information Technology** | **23.7** |
| **Financials** | **15.2** |
| **Health Care** | **11.1** |
| **Consumer Discretionary** | **10.0** |
| **Materials** | **3.9** |
| **Energy** | **3.6** |
| **Communication Services** | **3.3** |
| **Consumer Staples** | **2.5** |
| **Real Estate** | **1.4** |

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**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Neuberger Berman Genesis Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1, 2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.80% | $1000.00 | $1039.20 | $4.11 |
|  | Hypothetical\* | 0.80% | $1000.00 | $1021.17 | $4.08 |
|  Class B (a) | Actual | 1.05% | $1000.00 | $1038.20 | $5.39 |
|  | Hypothetical\* | 1.05% | $1000.00 | $1019.91 | $5.35 |
|  Class E (a) | Actual | 0.95% | $1000.00 | $1038.90 | $4.88 |
|  | Hypothetical\* | 0.95% | $1000.00 | $1020.42 | $4.84 |

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\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to
Financial Statements.

**BHFTII-4** 

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**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—98.5% of Net Assets** 

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Air Freight & Logistics—1.0%** | | |
|  Forward Air Corp. | 85751 | $8994422 |
| **Auto Components—3.0%** |  |  |
|  Fox Factory Holding Corp. (a) | 153217 | 13977987 |
|  LCI Industries | 77917 | 7203426 |
|  XPEL, Inc. (a) | 95945 | 5762457 |
|  |  | 26943870 |
| **Banks—11.4%** |  |  |
|  Bank of Hawaii Corp. | 149461 | 11592195 |
|  BOK Financial Corp. | 87702 | 9102591 |
|  Community Bank System, Inc. | 152790 | 9618131 |
|  Cullen/Frost Bankers, Inc. | 94675 | 12658047 |
|  CVB Financial Corp. | 344535 | 8871776 |
|  First Financial Bankshares, Inc. | 218363 | 7511687 |
|  Glacier Bancorp, Inc. | 249299 | 12320357 |
|  Lakeland Financial Corp. | 89835 | 6555260 |
|  Prosperity Bancshares, Inc. | 128507 | 9339889 |
|  Stock Yards Bancorp, Inc. | 104552 | 6793789 |
|  United Community Banks, Inc. | 216089 | 7303808 |
|  |  | 101667530 |
| **Biotechnology—0.4%** |  |  |
|  Abcam plc (a) | 223056 | 3470751 |
| **Building Products—1.9%** |  |  |
|  AAON, Inc. | 52525 | 3956183 |
|  CSW Industrials, Inc. | 70252 | 8144314 |
|  Hayward Holdings, Inc. (a) | 530141 | 4983326 |
|  |  | 17083823 |
| **Capital Markets—1.9%** |  |  |
|  Artisan Partners Asset Management, Inc. - Class A | 75209 | 2233707 |
|  Hamilton Lane, Inc. - Class A | 46496 | 2970165 |
|  Houlihan Lokey, Inc. | 66793 | 5821678 |
|  MarketAxess Holdings, Inc. | 21806 | 6081475 |
|  |  | 17107025 |
| **Chemicals—1.7%** |  |  |
|  Chase Corp. | 53216 | 4590412 |
|  Element Solutions, Inc. | 97910 | 1780983 |
|  Quaker Chemical Corp. | 49984 | 8342330 |
|  |  | 14713725 |
| **Commercial Services & Supplies—3.1%** |  |  |
|  Driven Brands Holdings, Inc. (a) | 292923 | 7999727 |
|  Rollins, Inc. | 187646 | 6856585 |
|  Tetra Tech, Inc. | 87977 | 12773381 |
|  |  | 27629693 |
| **Communications Equipment—1.2%** |  |  |
|  NetScout Systems, Inc. (a) | 334495 | 10874432 |
| **Construction & Engineering—2.2%** |  |  |
|  Valmont Industries, Inc. | 58276 | 19270125 |
| **Construction Materials—1.3%** |  |  |
|  Eagle Materials, Inc. | 90158 | 11977490 |
| **Containers & Packaging—0.9%** |  |  |
|  AptarGroup, Inc. | 76478 | 8411050 |
| **Distributors—2.3%** |  |  |
|  Pool Corp. | 67977 | 20551486 |
| **Diversified Consumer Services—0.5%** |  |  |
|  Bright Horizons Family Solutions, Inc. (a) | 67516 | 4260260 |
| **Electronic Equipment, Instruments & Components—4.4%** |  |  |
|  Advanced Energy Industries, Inc. | 62114 | 5328139 |
|  Littelfuse, Inc. | 58580 | 12899316 |
|  National Instruments Corp. | 137818 | 5085484 |
|  Novanta, Inc. (a) | 79296 | 10773948 |
|  Zebra Technologies Corp. - Class A (a) | 19445 | 4985892 |
|  |  | 39072779 |
| **Energy Equipment & Services—0.5%** |  |  |
|  Cactus, Inc. - Class A | 54668 | 2747614 |
|  Oceaneering International, Inc. (a) | 105991 | 1853782 |
|  |  | 4601396 |
| **Food & Staples Retailing—0.5%** |  |  |
|  Grocery Outlet Holding Corp. (a) | 140266 | 4094365 |
| **Food Products—0.3%** |  |  |
|  UTZ Brands, Inc. | 184386 | 2924362 |
| **Health Care Equipment & Supplies—3.8%** |  |  |
|  Atrion Corp. | 12745 | 7130190 |
|  Haemonetics Corp. (a) | 196061 | 15420198 |
|  IDEXX Laboratories, Inc. (a) | 14532 | 5928475 |
|  UFP Technologies, Inc. (a) | 44398 | 5234080 |
|  |  | 33712943 |
| **Health Care Providers & Services—1.8%** |  |  |
|  Chemed Corp. | 32146 | 16408283 |
| **Health Care Technology—0.6%** |  |  |
|  Certara, Inc. (a) | 85766 | 1378260 |
|  Simulations Plus, Inc. | 96387 | 3524872 |
|  |  | 4903132 |
| **Hotels, Restaurants & Leisure—1.1%** |  |  |
|  Texas Roadhouse, Inc. | 102460 | 9318737 |
| **Household Products—1.7%** |  |  |
|  Church & Dwight Co., Inc. | 88971 | 7171952 |
|  WD-40 Co. | 50208 | 8094032 |
|  |  | 15265984 |
| **Insurance—1.9%** |  |  |
|  AMERISAFE, Inc. | 84799 | 4407004 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **<br>Shares** | **Value** |
| **Insurance—(Continued)** | | |
|  Hagerty, Inc. - Class A (a) | 104413 | $878113 |
|  RLI Corp. | 85866 | 11271630 |
|  |  | 16556747 |
| **IT Services—1.1%** |  |  |
|  Jack Henry & Associates, Inc. | 56102 | 9849267 |
| **Life Sciences Tools & Services—4.5%** |  |  |
|  Bio-Techne Corp. | 243826 | 20208299 |
|  ICON plc (a) | 32916 | 6393933 |
|  West Pharmaceutical Services, Inc. | 57698 | 13579224 |
|  |  | 40181456 |
| **Machinery—8.5%** |  |  |
|  Esab Corp. | 25989 | 1219404 |
|  Graco, Inc. | 123568 | 8311184 |
|  Hillman Solutions Corp. (a) | 300587 | 2167232 |
|  Kadant, Inc. | 54400 | 9663072 |
|  Lindsay Corp. | 51592 | 8401757 |
|  Nordson Corp. | 41798 | 9936221 |
|  Omega Flex, Inc. | 29315 | 2735676 |
|  RBC Bearings, Inc. (a) | 79467 | 16636416 |
|  SPX Technologies, Inc. (a) | 14986 | 983831 |
|  Toro Co. (The) | 135816 | 15374371 |
|  |  | 75429164 |
| **Marine—1.5%** |  |  |
|  Kirby Corp. (a) | 201543 | 12969292 |
| **Media—3.3%** |  |  |
|  Cable One, Inc. | 8662 | 6166131 |
|  Nexstar Media Group, Inc. - Class A | 98891 | 17308892 |
|  TechTarget, Inc. (a) | 127548 | 5619765 |
|  |  | 29094788 |
| **Oil, Gas & Consumable Fuels—3.0%** |  |  |
|  Matador Resources Co. | 140958 | 8068436 |
|  Sitio Royalties Corp. - Class A | 161727 | 4665836 |
|  Southwestern Energy Co. (a) | 1110148 | 6494366 |
|  Texas Pacific Land Corp. | 3357 | 7869580 |
|  |  | 27098218 |
| **Professional Services—3.5%** |  |  |
|  CRA International, Inc. | 19338 | 2367552 |
|  Exponent, Inc. | 170123 | 16857488 |
|  FTI Consulting, Inc. (a) | 76764 | 12190123 |
|  |  | 31415163 |
| **Real Estate Management & Development—1.4%** |  |  |
|  FirstService Corp. | 104427 | 12797529 |
| **Semiconductors & Semiconductor Equipment—5.3%** |  |  |
|  FormFactor, Inc. (a) | 163910 | $3643719 |
|  Lattice Semiconductor Corp. (a) | 309141 | 20057068 |
|  MKS Instruments, Inc. | 102524 | 8686859 |
|  Power Integrations, Inc. | 211576 | 15174231 |
|  |  | 47561877 |
| **Software—11.6%** |  |  |
|  American Software, Inc.—Class A | 198952 | 2920615 |
|  Aspen Technology, Inc. (a) | 58027 | 11918746 |
|  CommVault Systems, Inc. (a) | 72765 | 4572553 |
|  Fair Isaac Corp. (a) | 30814 | 18444644 |
|  Manhattan Associates, Inc. (a) | 140529 | 17060221 |
|  Model N, Inc. (a) | 190897 | 7742782 |
|  Qualys, Inc. (a) | 124916 | 14019323 |
|  SPS Commerce, Inc. (a) | 122150 | 15687724 |
|  Tyler Technologies, Inc. (a) | 24007 | 7740097 |
|  Vertex, Inc. - Class A (a) | 236883 | 3437172 |
|  |  | 103543877 |
| **Specialty Retail—3.2%** |  |  |
|  Asbury Automotive Group, Inc. (a) | 77500 | 13891875 |
|  Floor & Decor Holdings, Inc. - Class A (a) | 96603 | 6726467 |
|  Tractor Supply Co. | 35193 | 7917369 |
|  |  | 28535711 |
| **Trading Companies & Distributors—2.2%** |  |  |
|  Richelieu Hardware, Ltd. | 148143 | 3961786 |
|  SiteOne Landscape Supply, Inc. (a) | 41017 | 4812114 |
|  Transcat, Inc. (a) | 46795 | 3316362 |
|  Watsco, Inc. | 30412 | 7584753 |
|  |  | 19675015 |
|  Total Common Stocks <br>(Cost $568,116,067) |  | 877965767 |
| **Short-Term Investment—1.5%** | **Short-Term Investment—1.5%** | **Short-Term Investment—1.5%** |
| **Repurchase Agreement—1.5%** | **Repurchase Agreement—1.5%** | **Repurchase Agreement—1.5%** |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $13,417,124; collateralized by U.S. Treasury Bond at 1.375%, maturing 08/15/50, with a market value of $13,682,743. | 13414441 | 13414441 |
|  Total Short-Term Investments <br>(Cost $13,414,441) |  | 13414441 |
|  Total Investments—100.0% <br>(Cost $581,530,508) | Total Investments—100.0% <br>(Cost $581,530,508) | 891380208 |
|  Other assets and liabilities (net)—0.0% | Other assets and liabilities (net)—0.0% | (361346) |
| **Net Assets—100.0%** | **Net Assets—100.0%** | $891018862 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Freight & Logistics | $8994422 | $— | $— | $8994422 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | 26943870 |  |  | 26943870 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks | 101667530 |  |  | 101667530 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology | 3470751 |  |  | 3470751 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Products | 17083823 |  |  | 17083823 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 17107025 |  |  | 17107025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 14713725 |  |  | 14713725 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services & Supplies | 27629693 |  |  | 27629693 |
| &nbsp;&nbsp;&nbsp;&nbsp; Communications Equipment | 10874432 |  |  | 10874432 |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction & Engineering | 19270125 |  |  | 19270125 |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction Materials | 11977490 |  |  | 11977490 |
| &nbsp;&nbsp;&nbsp;&nbsp; Containers & Packaging | 8411050 |  |  | 8411050 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributors | 20551486 |  |  | 20551486 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Consumer Services | 4260260 |  |  | 4260260 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electronic Equipment, Instruments & Components | 39072779 |  |  | 39072779 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Equipment & Services | 4601396 |  |  | 4601396 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food & Staples Retailing | 4094365 |  |  | 4094365 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food Products | 2924362 |  |  | 2924362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 33712943 |  |  | 33712943 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 16408283 |  |  | 16408283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Technology | 4903132 |  |  | 4903132 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 9318737 |  |  | 9318737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Household Products | 15265984 |  |  | 15265984 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 16556747 |  |  | 16556747 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 9849267 |  |  | 9849267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 40181456 |  |  | 40181456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 75429164 |  |  | 75429164 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marine | 12969292 |  |  | 12969292 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media | 29094788 |  |  | 29094788 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 27098218 |  |  | 27098218 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional Services | 31415163 |  |  | 31415163 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Management & Development | 12797529 |  |  | 12797529 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 47561877 |  |  | 47561877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 103543877 |  |  | 103543877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 28535711 |  |  | 28535711 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading Companies & Distributors | 15713229 | 3961786 |  | 19675015 |
|  Total Common Stocks | 874003981 | 3961786 |  | 877965767 |
|  Total Short-Term Investment\* |  | 13414441 |  | 13414441 |
|  Total Investments | $874003981 | $17376227 | $— | $891380208 |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) | $891380208 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 165878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 281016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 476879 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 892307490 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 201043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 105377 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 592602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 65061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 176114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 148431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 1288628 |
|  **Net Assets** | $891018862 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $499906179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 391112683 |
|  **Net Assets** | $891018862 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $566583282 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 259395885 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 65039695 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 32357680 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 15406999 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 3808211 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $17.51 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 16.84 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 17.08 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $581,530,508.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $9660020 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | 63459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 9723479 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 8064046 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 47435 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 63453 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 713740 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 107968 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 44272 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 89649 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 8282 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 15320 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 9208820 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (440743) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (24195) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 8743882 |
|  **Net Investment Income** | 979597 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 80792971 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (418) |
|  Net realized gain (loss) | 80792553 |
|  Net change in unrealized depreciation on investments | (311766210) |
|  Net realized and unrealized gain (loss) | (230973657) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(229994060) |

---

(a) Net of foreign withholding taxes of $21,619.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $979597 | $(1492625) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 80792553 | 170028958 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (311766210) | 34415381 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (229994060) | 202951714 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (106970605) | (48870401) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (50463350) | (23004374) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (12512018) | (5891827) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (169945973) | (77766602) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 76708143 | (86583331) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (323231890) | 38601781 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1214250752 | 1175648971 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $891018862 | $1214250752 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 403662 | $8348547 | 600604 | $15278810 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 6413106 | 106970605 | 2026977 | 48870401 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (3336606) | (63956922) | (4551362) | (116420903) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3480162 | $51362230 | (1923781) | $(52271692) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 596860 | $11834859 | 782772 | $19395958 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 3142176 | 50463350 | 981834 | 23004374 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2136947) | (40638832) | (2744759) | (68200679) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 1602089 | $21659377 | (980153) | $(25800347) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 34853 | $711204 | 42253 | $1060129 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 768551 | 12512018 | 248916 | 5891827 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (489775) | (9536686) | (616551) | (15463248) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 313629 | $3686536 | (325382) | $(8511292) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $76708143 |  | $(86583331) |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $26.57 | $24.01 | $20.75 | $18.56 | $22.65 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.04 | (0.01) | 0.03 | 0.05 | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.32) | 4.26 | 4.74 | 5.19 | (1.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.28) | 4.25 | 4.77 | 5.24 | (1.15) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | (0.02) | (0.04) | (0.05) | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.78) | (1.67) | (1.47) | (3.00) | (2.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.78) | (1.69) | (1.51) | (3.05) | (2.94) |
|  **Net Asset Value, End of Period** | $17.51 | $26.57 | $24.01 | $20.75 | $18.56 |
|  **Total Return (%)** (b) | (19.15) | 18.41 | 25.11 | 29.68 | (6.70) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.86 | 0.84 | 0.86 | 0.87 | 0.86 |
|  Net ratio of expenses to average net assets (%) (c) | 0.81 | 0.83 | 0.85 | 0.85 | 0.84 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.18 | (0.04) | 0.17 | 0.23 | 0.25 |
|  Portfolio turnover rate (%) | 13 | 10 | 12 | 11 | 12 |
|  Net assets, end of period (in millions) | $566.6 | $767.1 | $739.6 | $670.9 | $577.6 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $25.79 | $23.39 | $20.27 | $18.18 | $22.25 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.01) | (0.07) | (0.02) | (0.00)(d) | 0.00 (d) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.16) | 4.14 | 4.61 | 5.09 | (1.19) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.17) | 4.07 | 4.59 | 5.09 | (1.19) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | 0.00 | 0.00 | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.78) | (1.67) | (1.47) | (3.00) | (2.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.78) | (1.67) | (1.47) | (3.00) | (2.88) |
|  **Net Asset Value, End of Period** | $16.84 | $25.79 | $23.39 | $20.27 | $18.18 |
|  **Total Return (%)** (b) | (19.32) | 18.12 | 24.76 | 29.41 | (6.98) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.11 | 1.09 | 1.11 | 1.12 | 1.11 |
|  Net ratio of expenses to average net assets (%) (c) | 1.06 | 1.08 | 1.10 | 1.10 | 1.09 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.07) | (0.29) | (0.08) | (0.02) | 0.01 |
|  Portfolio turnover rate (%) | 13 | 10 | 12 | 11 | 12 |
|  Net assets, end of period (in millions) | $259.4 | $356 | $345.9 | $313.9 | $271.7 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $26.07 | $23.61 | $20.42 | $18.30 | $22.38 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.01 | (0.05) | 0.00 (d) | 0.02 | 0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.22) | 4.18 | 4.67 | 5.12 | (1.19) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.21) | 4.13 | 4.67 | 5.14 | (1.17) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.01) | (0.02) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.78) | (1.67) | (1.47) | (3.00) | (2.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.78) | (1.67) | (1.48) | (3.02) | (2.91) |
|  **Net Asset Value, End of Period** | $17.08 | $26.07 | $23.61 | $20.42 | $18.30 |
|  **Total Return (%)** (b) | (19.26) | 18.21 | 24.96 | 29.49 | (6.89) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.01 | 0.99 | 1.01 | 1.02 | 1.01 |
|  Net ratio of expenses to average net assets (%) (c) | 0.96 | 0.98 | 1.00 | 1.00 | 0.99 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.03 | (0.19) | 0.02 | 0.08 | 0.11 |
|  Portfolio turnover rate (%) | 13 | 10 | 12 | 11 | 12 |
|  Net assets, end of period (in millions) | $65 | $91.1 | $90.2 | $82.5 | $74.3 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

(d) Net investment income (loss) was less than $0.01.

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Neuberger Berman Genesis Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. Book-tax differences are primarily due to adjustments to prior period accumulated balances. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $13,414,441, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Directed Brokerage Agreement -** The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. ("CAPIS"). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

**3. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $131853200 | $0 | $213991104 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

---

| | | |
|:---|:---|:---|
| **Management Fees earned by<br>Brighthouse Investment Advisers<br>for the year ended**<br> **December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $8064046 | 0.850% | Of the first $500 million |
|  | 0.800% | Of the next $500 million |
|  | 0.750% | On amounts in excess of $1 billion |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Neuberger Berman Investment Advisers LLC is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.075% | First $500 million |
| 0.050% | Over $500 million |

---

Prior to April 29, 2022, the Adviser had agreed, for the period April 30, 2021 to April 28, 2022, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.025% | First $500 million |

---

Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $581598352 |
|  Gross unrealized appreciation | 337197160 |
|  Gross unrealized (depreciation) | (27415304) |
|  Net unrealized appreciation (depreciation) | $309781856 |

---

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $— | $476893 | $169945973 | $77289709 | $169945973 | $77766602 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $896456 | $80610485 | $309781856 | $– $| 391288797 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Neuberger Berman Genesis Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Neuberger Berman Genesis Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Neuberger Berman Genesis Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-18** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Neuberger Berman Genesis Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Neuberger Berman Investment Advisers LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of one of its Performance Universes and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board also considered that the Portfolio underperformed the median of its other Performance Universe and the average of a different, but still comparable, Morningstar Category for the one-year period ended June 30, 2022 and outperformed the median of that Performance Universe and average of that Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Russell 2000 Value Index, for the one-year period ended October 31, 2022 and outperformed its benchmark for the three- and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Neuberger Berman Genesis Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees were above the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board also considered that the Portfolio's total expenses (exclusive of 12b-1 fees) were above the Expense Group median and below the Expense Universe median and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio's sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contract holders to benefit from the lower sub-advisory fee effective April 29, 2022.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Managed by T. Rowe Price Associates, Inc.** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the T. Rowe Price Large Cap Growth Portfolio returned -40.46%, -40.67%, and -40.58%, respectively. The Portfolio's benchmark, the Russell 1000 Growth Index¹, returned -29.14%.

**MARKET ENVIRONMENT / CONDITIONS** 

Major U.S. stock indexes fell sharply in 2022, the worst year for equities since the 2008 global financial crisis. Investors shunned riskier assets in response to Russia's invasion of Ukraine, elevated inflation exacerbated by rising commodity prices and global supply chain disruptions, surging U.S. Treasury yields, tightening financial conditions, and slowing economic and corporate earnings growth. The U.S. Federal Reserve's (the "Fed") aggressive short-term interest rate hikes that began in March, as well as comments that it would be willing to risk causing a recession by raising rates and keeping them at a higher level in order to bring inflation down, also weighed on the market. Although many indexes finished the year above their lowest levels of 2022, the year ended with many investors concerned that ongoing Fed rate hikes would hurt corporate earnings and push the economy into a recession in 2023.

Domestic investment grade and high yield bond prices tumbled in 2022. U.S. Treasury yields rose sharply, and the U.S. Treasury yield curve inverted during the year as short- and intermediate-term yields rose above longer-term yields. Historically, this has often signaled an approaching recession. In the investment grade universe, corporate bonds fell sharply as interest rates rose and credit spreads—the yield difference between higher- and lower-quality issues—widened amid concerns that Fed rate hikes would weaken the economy and corporate earnings.

Stocks in developed non-U.S. markets declined in 2022, as elevated inflation prompted many central banks to tighten their monetary policies. Developed European markets fell broadly in U.S. dollar terms. Stocks in Sweden, the Netherlands, Ireland, and Austria were among the worst performers, while Norway, Denmark, and the U.K. held up well. Developed markets in Asia also fell broadly. Stocks in Hong Kong and Australia held up best, while Japanese shares performed the worst. Stocks in emerging markets fared worse than developed non-U.S. markets in 2022. Emerging Asian markets were mostly lower in U.S. dollar terms. Shares in China, South Korea and Taiwan fell, while shares in Thailand and Indonesia rose.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio posted negative returns and underperformed its benchmark, the Russell 1000 Growth Index (the "Index"), during the reporting period. Broadly speaking, both security selection and sector allocation drove relative underperformance.

The Consumer Discretionary sector was a significant detractor from relative returns due to weak stock selection and an overweight allocation. Shares of Amazon.com traded lower in response to deceleration within both its e-commerce and Amazon Web Services segments as consumer confidence and enterprise cloud spend softened due to macro concerns. The company also disappointed in terms of cost control efforts that fell short of targets, with its bloated logistics footprint continuing to weigh on profitability.

Weak stock choices coupled with an overweight allocation in Communication Services also held back relative performance. Shares of Snap fell dramatically over the past year as it struggled to adapt to new policies around data tracking that affected its ability to target and measure ad performance. This, at a time when competition is intensifying, and an uncertain macro backdrop have led to tighter advertising spend. During the period, we eliminated the stock due to an impaired thesis and a loss of confidence in the company's management team.

Weak stock choices in the Information Technology ("IT") sector further detracted from relative results.

Conversely, the Health Care sector was the sole contributor to relative results due to favorable stock selection. Cigna has performed well on solid results, driven by strength in both its pharmacy-benefits and health care segments, including a better-than-expected medical loss ratio. We believe Cigna remains a source of steady growth at an attractive valuation and appreciate its significant exposure to commercial markets in which we think the company should be able to exercise pricing power in the near term. Managed care holdings UnitedHealth Group and Humana also performed well over the past year due to better-than-expected cost trends as utilization returns to normal in the wake of the pandemic.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Managed by T. Rowe Price Associates, Inc.** 

**Portfolio Manager Commentary\*—(Continued)** 

At the end of the period, the Portfolio was overweight relative to the benchmark in the Communication Services, Consumer Discretionary, IT, and Health Care sectors. The portfolio was underweight relative to the benchmark in the Consumer Staples, Industrials, Financials, Energy, Real Estate, and Materials sectors. Portfolio positioning decisions are driven primarily by bottom-up stock selection informed by rigorous internal research at the individual company level.

**Joseph B. Fath** 

Portfolio Manager

*T. Rowe Price Associates, Inc.* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

¹ The Russell 1000 Growth Index is an unmanaged measure of performance of the largest capitalized U.S. companies, within the Russell 1000 companies, that have higher price-to-book ratios and forecasted growth values.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX**![LOGO](g400324g61t39.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**T. Rowe Price Large Cap Growth Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -40.46 | 4.93 | 11.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -40.67 | 4.65 | 11.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -40.58 | 4.77 | 11.11 |
| &nbsp;&nbsp;&nbsp;**Russell 1000 Growth Index** | -29.14 | 10.96 | 14.10 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Microsoft Corp.** | **12.3** |
| **Apple, Inc.** | **7.0** |
| **Amazon.com, Inc.** | **6.0** |
| **Alphabet, Inc.- Class A** | **4.4** |
| **UnitedHealth Group, Inc.** | **4.2** |
| **Visa, Inc.- Class A** | **3.3** |
| **MasterCard, Inc.- Class A** | **3.0** |
| **ASML Holding NV** | **2.7** |
| **NVIDIA Corp.** | **2.6** |
| **Intuit, Inc.** | **2.6** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Information Technology** | **46.8** |
| **Consumer Discretionary** | **18.5** |
| **Health Care** | **14.6** |
| **Communication Services** | **10.8** |
| **Industrials** | **3.7** |
| **Consumer Staples** | **0.6** |
| **Financials** | **0.1** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **T. Rowe Price Large Cap Growth Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.55% | $1000.00 | $948.20 | $2.70 |
|  | Hypothetical\* | 0.55% | $1000.00 | $1022.43 | $2.80 |
|  Class B (a) | Actual | 0.80% | $1000.00 | $946.40 | $3.92 |
|  | Hypothetical\* | 0.80% | $1000.00 | $1021.17 | $4.08 |
|  Class E (a) | Actual | 0.70% | $1000.00 | $947.70 | $3.44 |
|  | Hypothetical\* | 0.70% | $1000.00 | $1021.68 | $3.57 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—92.8% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.0%** | **Aerospace & Defense—1.0%** | **Aerospace & Defense—1.0%** |
|  Airbus SE | 150274 | $17867919 |
| **Air Freight & Logistics—0.6%** |  |  |
|  FedEx Corp. (a) | 55651 | 9638753 |
| **Auto Components—0.1%** |  |  |
|  Mobileye Global, Inc. - Class A (a) (b) | 25815 | 905074 |
| **Automobiles—3.2%** |  |  |
|  Ferrari NV (a) | 110609 | 23694660 |
|  Rivian Automotive, Inc. - Class A (a) (b) | 1679657 | 30956079 |
|  |  | 54650739 |
| **Biotechnology—0.7%** |  |  |
|  Argenx SE (ADR) (b) | 32390 | 12270304 |
| **Commercial Services & Supplies—0.4%** |  |  |
|  Cintas Corp. (a) | 13783 | 6224678 |
| **Electronic Equipment, Instruments & Components—1.6%** | **Electronic Equipment, Instruments & Components—1.6%** | **Electronic Equipment, Instruments & Components—1.6%** |
|  Teledyne Technologies, Inc. (a) (b) | 70053 | 28014895 |
| **Entertainment—2.3%** |  |  |
|  Netflix, Inc. (b) | 75975 | 22403508 |
|  Sea, Ltd. (ADR) (a) (b) | 135008 | 7024466 |
|  Spotify Technology S.A. (b) | 120437 | 9508501 |
|  |  | 38936475 |
| **Health Care Equipment & Supplies—3.0%** |  |  |
|  Align Technology, Inc. (b) | 23208 | 4894567 |
|  Insulet Corp. (b) | 23378 | 6882250 |
|  Intuitive Surgical, Inc. (b) | 105767 | 28065274 |
|  Stryker Corp. | 51611 | 12618373 |
|  |  | 52460464 |
| **Health Care Providers & Services—7.0%** |  |  |
|  Cigna Corp. | 50096 | 16598809 |
|  HCA Healthcare, Inc. | 52827 | 12676367 |
|  Humana, Inc. | 40019 | 20497331 |
|  UnitedHealth Group, Inc. | 135179 | 71669202 |
|  |  | 121441709 |
| **Hotels, Restaurants & Leisure—4.1%** |  |  |
|  Booking Holdings, Inc. (b) | 7125 | 14358870 |
|  Chipotle Mexican Grill, Inc. (b) | 9862 | 13683426 |
|  Expedia Group, Inc. (b) | 95264 | 8345127 |
|  Las Vegas Sands Corp. (a) (b) | 426862 | 20519256 |
|  Wynn Resorts, Ltd. (b) | 159149 | 13125018 |
|  |  | 70031697 |
| **Interactive Media & Services—8.0%** |  |  |
|  Alphabet, Inc. - Class A (b) | 870120 | 76770687 |
|  Alphabet, Inc. - Class C (b) | 455685 | 40432930 |
|  Match Group, Inc. (b) | 180683 | 7496538 |
|  Meta Platforms, Inc. - Class A (b) | 53300 | 6414122 |
| **Interactive Media & Services—(Continued)** |  |  |
|  Pinterest, Inc. - Class A (b) | 311831 | 7571257 |
|  |  | 138685534 |
| **Internet & Direct Marketing Retail—6.6%** |  |  |
|  Amazon.com, Inc. (b) | 1241675 | 104300700 |
|  Coupang, Inc. (b) | 545502 | 8024334 |
|  Maplebear, Inc.† (b) (c) (d) | 17978 | 871574 |
|  Maplebear, Inc. (Non-Voting Shares)† (b) (c) (d) | 939 | 45523 |
|  |  | 113242131 |
| **IT Services—8.9%** |  |  |
|  Adyen NV (b) | 1627 | 2251469 |
|  Fiserv, Inc. (b) | 298631 | 30182635 |
|  Global Payments, Inc. (a) | 63155 | 6272555 |
|  MasterCard, Inc. - Class A | 150668 | 52391784 |
|  MongoDB, Inc. (b) | 21603 | 4252334 |
|  Stripe, Inc. - Class B† (b) (c) (d) | 63278 | 1171276 |
|  Visa, Inc. - Class A (a) | 272605 | 56636415 |
|  |  | 153158468 |
| **Leisure Products—0.3%** |  |  |
|  Peloton Interactive, Inc. - Class A (a) (b) | 559259 | 4440516 |
| **Life Sciences Tools & Services—1.0%** |  |  |
|  Avantor, Inc. (b) | 373865 | 7884813 |
|  Danaher Corp. | 22700 | 6025034 |
|  Illumina, Inc. (b) | 16670 | 3370674 |
|  |  | 17280521 |
| **Personal Products—0.6%** |  |  |
|  Estee Lauder Cos., Inc. (The) - Class A | 42080 | 10440469 |
| **Pharmaceuticals—2.5%** |  |  |
|  AstraZeneca plc (ADR) | 91467 | 6201463 |
|  Eli Lilly and Co. | 100329 | 36704361 |
|  |  | 42905824 |
| **Professional Services—0.9%** |  |  |
|  TransUnion | 206079 | 11694983 |
|  Verisk Analytics, Inc. | 25925 | 4573689 |
|  |  | 16268672 |
| **Road & Rail—0.6%** |  |  |
|  Old Dominion Freight Line, Inc. | 37250 | 10570805 |
| **Semiconductors & Semiconductor Equipment—7.4%** |  |  |
|  Advanced Micro Devices, Inc. (b) | 383297 | 24826146 |
|  ASML Holding NV | 84602 | 46226533 |
|  Lam Research Corp. | 25986 | 10921916 |
|  NVIDIA Corp. | 310907 | 45435949 |
|  |  | 127410544 |
| **Software—22.0%** |  |  |
|  Atlassian Corp. - Class A (a) (b) | 84277 | 10844764 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **<br>Shares** | **Value** | **Value** |
| **Software —(Continued)** | | | |
|  Black Knight, Inc. (b) | 94694 | $| 5847355 |
|  Ceridian HCM Holding, Inc. (a) (b) | 116561 |  | 7477388 |
|  Epic Games, Inc.† (b) (c) (d) | 7860 |  | 5406344 |
|  Hashicorp, Inc. - Class A (a) (b) | 30645 |  | 837834 |
|  Intuit, Inc. | 113953 |  | 44352787 |
|  Magic Leap, Inc. - Class A† (b) (c) (d) | 10914 |  | 209569 |
|  Microsoft Corp. | 882009 |  | 211523398 |
|  Monday.com, Ltd. (a) (b) | 26981 |  | 3291682 |
|  Roper Technologies, Inc. | 52522 |  | 22694231 |
|  Salesforce, Inc. (b) | 165508 |  | 21944706 |
|  SentinelOne, Inc. - Class A (a) (b) | 290779 |  | 4242466 |
|  ServiceNow, Inc. (b) | 84399 |  | 32769600 |
|  Trade Desk, Inc. (The) - Class A (b) | 182705 |  | 8190665 |
|  |  |  | 379632789 |
| **Specialty Retail—2.7%** |  |  |  |
|  Floor & Decor Holdings, Inc. - Class A (a) (b) | 87165 |  | 6069299 |
|  Ross Stores, Inc. | 353330 |  | 41011013 |
|  |  |  | 47080312 |
| **Technology Hardware, Storage & Peripherals—7.0%** |  |  |  |
|  Apple, Inc. | 936115 |  | 121629422 |
| **Textiles, Apparel & Luxury Goods—0.3%** |  |  |  |
|  Lululemon Athletica, Inc. (b) | 16850 |  | 5398403 |
|  Total Common Stocks <br>(Cost $1,313,307,184) |  |  | 1600587117 |
| **Preferred Stocks—1.3%** |  |  |  |
| **Automobiles—1.0%** |  |  |  |
|  Dr. Ing HC F Porsche AG (b) | 167070 |  | 16950292 |
| **Life Sciences Tools & Services—0.3%** |  |  |  |
|  Sartorius AG | 14316 |  | 5661338 |
|  Total Preferred Stocks <br>(Cost $20,736,826) |  |  | 22611630 |
| **Convertible Preferred Stocks—1.0%** |  |  |  |
| **Automobiles—0.5%** |  |  |  |
|  GM Cruise Holdings LLC - Series F† (b) (c) (d) | 196100 |  | 3986713 |
|  Nuro, Inc. - Series C† (b) (c) (d) | 179741 |  | 2494805 |
|  Sila Nano, Inc. - Series F† (b) (c) (d) | 52110 |  | 1624269 |
|  Waymo LLC - Series A-2† (b) (c) (d) | 26511 |  | 1250789 |
|  |  |  | 9356576 |
| **Internet & Direct Marketing Retail—0.5%** |  |  |  |
|  ANT International Co., Ltd. - Class C† (c) (d) | 2147070 |  | 4358552 |
|  Maplebear, Inc. |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Series A† (b) (c) (d) | 2525 |  | 122412 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series G† (b) (c) (d) | 36727 |  | 1780525 |
| **Internet & Direct Marketing Retail—(Continued)** |  |  |  |
|  Rappi, Inc. - Series E† (b) (c) (d) | 52748 |  | 1899455 |
|  |  |  | 8160944 |
| **Software—0.0%** |  |  |  |
|  Celonis S.E. - Series D† (b) (c) (d) | 1177 |  | 435243 |
|  Total Convertible Preferred Stocks <br>(Cost $24,042,767) |  |  | 17952763 |
| **Short-Term Investment—4.7%** | **Short-Term Investment—4.7%** | **Short-Term Investment—4.7%** | **Short-Term Investment—4.7%** |
| **Mutual Funds—4.7%** |  |  |  |
| T. Rowe Price Government Reserve Fund (e) | 80378630 |  | 80378630 |
|  Total Short-Term Investments <br>(Cost $80,378,630) |  |  | 80378630 |
| **Securities Lending Reinvestments (f)—8.7%** | **Securities Lending Reinvestments (f)—8.7%** | **Securities Lending Reinvestments (f)—8.7%** | **Securities Lending Reinvestments (f)—8.7%** |
| **Certificates of Deposit—5.2%** |  |  |  |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (g) | 5000000 |  | 5000000 |
|  Bank of Nova Scotia<br>4.770%, FEDEFF PRV + 0.440%, 01/09/23 (g) | 2000000 |  | 2000081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (g) | 5000000 |  | 5002101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (g) | 1000000 |  | 1001169 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (g) | 5000000 |  | 5001740 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (g) | 4000000 |  | 4000265 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (g) | 4000000 |  | 4001531 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (g) | 6000000 |  | 6000426 |
|  Commonwealth Bank of Australia<br>4.680%, SOFR + 0.380%, 03/30/23 (g) | 2000000 |  | 2000148 |
|  Cooperatieve Rabobank UA<br>4.670%, SOFR + 0.370%, 03/20/23 (g) | 4000000 |  | 4000000 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (g) | 4000000 |  | 4001200 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (g) | 3000000 |  | 3000901 |
|  MUFG Bank Ltd. (NY)<br>4.900%, SOFR + 0.600%, 01/25/23 (g) | 5000000 |  | 5001050 |
|  Natixis S.A. (New York)<br>4.800%, SOFR + 0.500%, 02/13/23 (g) | 5000000 |  | 5001973 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (g) | 3000000 |  | 2999952 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.890%, FEDEFF PRV + 0.560%, 04/10/23 (g) | 2000000 |  | 2001152 |
|  Standard Chartered Bank (NY)<br>5.040%, SOFR + 0.740%, 05/02/23 (g) | 2000000 |  | 2003036 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (g) | 2000000 |  | 2000220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.050%, SOFR + 0.750%, 04/21/23 (g) | 5000000 |  | 5006770 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (f)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Certificates of Deposit—(Continued)** | | |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.840%, SOFR + 0.540%, 01/10/23 (g) | 3000000 | $3000234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (g) | 3000000 | 3000834 |
|  Svenska Handelsbanken AB<br>4.900%, SOFR + 0.600%, 04/12/23 (g) | 2000000 | 2001358 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (g) | 4000000 | 3999825 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (g) | 7000000 | 6999230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (g) | 2000000 | 2000682 |
|  |  | 90025878 |
| **Commercial Paper—1.2%** |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (g) | 5000000 | 5006810 |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (g) | 5000000 | 5001350 |
|  UBS AG<br>4.870%, SOFR + 0.570%, 03/23/23 (g) | 6000000 | 6000000 |
|  United Overseas Bank, Ltd.<br>4.850%, SOFR + 0.550%, 02/03/23 (g) | 4000000 | 4000964 |
|  |  | 20009124 |
| **Master Demand Notes—0.2%** |  |  |
|  Bank of America N.A.<br>4.880%, SOFR + 0.580%, 05/15/23 (g) | 4000000 | 3999955 |
| **Repurchase Agreements—1.8%** |  |  |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $19,805,908; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $20,192,468. | 19796537 | 19796537 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $7,031,442; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $7,140,001. | 7000000 | 7000000 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $3,013,563; collateralized by various Common Stock with an aggregate market value of $3,333,764. | 3000000 | 3000000 |
|  Societe Generale <br>Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $1,000,859; collateralized by various Common Stock with an aggregate market value of $1,113,192. | 1000000 | 1000000 |
|  |  | 30796537 |
| **Time Deposit—0.3%** |  |  |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (g) | 5000000 | 5000000 |
|  Total Securities Lending Reinvestments <br>(Cost $149,796,537) |  | 149831494 |
|  Total Investments—108.5% <br>(Cost $1,588,261,944) |  | 1871361634 |
|  Other assets and liabilities (net)—(8.5)% |  | (145914104) |
| **Net Assets—100.0%** |  | $1725447530 |

---

---

| | |
|:---|:---|
| \* | Principal amount stated in U.S. dollars unless otherwise noted. |
| † | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2022, the market value of restricted securities was $25,657,049, which is 1.5% of net assets. See details shown in the Restricted Securities table that follows. |
| (a) | All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $145,956,827 and the collateral received consisted of cash in the amount of $149,796,537 and non-cash collateral with a value of $710. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities. |
| (b) | Non-income producing security. |
| (c) | Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3. |
| (d) | Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent 1.5% of net assets. |
| (e) | Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.) |
| (f) | Represents investment of cash collateral received from securities on loan as of December 31, 2022. |
| (g) | Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above. |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Restricted Securities** | **Acquisition<br>Date** | **Shares** | **Cost** | **Value** |
|  ANT International Co., Ltd. - Class C | 06/07/18 | 2147070 | $8183290 | $4358552 |
|  Celonis S.E. - Series D | 10/04/22 | 1177 | 435243 | 435243 |
|  Epic Games, Inc. | 06/18/20 | 7860 | 4519500 | 5406344 |
|  GM Cruise Holdings LLC - Series F | 05/07/19 | 196100 | 3578825 | 3986713 |
|  Magic Leap, Inc. - Class A | 01/20/16-10/12/17 | 10914 | 5305346 | 209569 |
|  Maplebear, Inc. | 08/07/20 | 17978 | 832991 | 871574 |
|  Maplebear, Inc. - Series A | 11/18/20 | 2525 | 154056 | 122412 |
|  Maplebear, Inc. - Series G | 07/02/20 | 36727 | 1766271 | 1780525 |
|  Maplebear, Inc. (Non-Voting Shares) | 08/07/20 | 939 | 43508 | 45523 |
|  Nuro, Inc. - Series C | 10/30/20 | 179741 | 2346447 | 2494805 |
|  Rappi, Inc. - Series E | 09/08/20-09/24/20 | 52748 | 3151484 | 1899455 |
|  Sila Nano, Inc. - Series F | 01/07/21 | 52110 | 2150726 | 1624269 |
|  Stripe, Inc. - Class B | 12/17/19 | 63278 | 992832 | 1171276 |
|  Waymo LLC - Series A-2 | 05/08/20 | 26511 | 2276425 | 1250789 |
|  |  |  |  | $25657049 |

---

**Glossary of Abbreviations** 

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

Other Abbreviations

------

(ADR)— American Depositary Receipt

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace & Defense | $— | $17867919 | $— | $17867919 |
| &nbsp;&nbsp;&nbsp;&nbsp; Air Freight & Logistics | 9638753 |  |  | 9638753 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | 905074 |  |  | 905074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | 54650739 |  |  | 54650739 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology | 12270304 |  |  | 12270304 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services & Supplies | 6224678 |  |  | 6224678 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electronic Equipment, Instruments & Components | 28014895 |  |  | 28014895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment | 38936475 |  |  | 38936475 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Equipment & Supplies | 52460464 |  |  | 52460464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care Providers & Services | 121441709 |  |  | 121441709 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hotels, Restaurants & Leisure | 70031697 |  |  | 70031697 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interactive Media & Services | 138685534 |  |  | 138685534 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | 112325034 |  | 917097 | 113242131 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 149735723 | 2251469 | 1171276 | 153158468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Leisure Products | 4440516 |  |  | 4440516 |
| &nbsp;&nbsp;&nbsp;&nbsp; Life Sciences Tools & Services | 17280521 |  |  | 17280521 |
| &nbsp;&nbsp;&nbsp;&nbsp; Personal Products | 10440469 |  |  | 10440469 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals | 42905824 |  |  | 42905824 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional Services | 16268672 |  |  | 16268672 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 10570805 |  |  | 10570805 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 127410544 |  |  | 127410544 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 374016876 |  | 5615913 | 379632789 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 47080312 |  |  | 47080312 |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology Hardware, Storage & Peripherals | 121629422 |  |  | 121629422 |
| &nbsp;&nbsp;&nbsp;&nbsp; Textiles, Apparel & Luxury Goods | 5398403 |  |  | 5398403 |
|  Total Common Stocks | 1572763443 | 20119388 | 7704286 | 1600587117 |
|  Total Preferred Stocks\* |  | 22611630 |  | 22611630 |
|  Total Convertible Preferred Stocks\* |  |  | 17952763 | 17952763 |
|  Total Short-Term Investment\* | 80378630 |  |  | 80378630 |
|  Total Securities Lending Reinvestments\* |  | 149831494 |  | 149831494 |
|  Total Investments | $1653142073 | $192562512 | $25657049 | $1871361634 |
|  Collateral for Securities Loaned (Liability) | $— | $(149796537) | $— | $(149796537) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investments in Securities** | **Balance as of<br>December 31, 2021** | **Purchases** | **Change in<br>Unrealized<br>Appreciation/<br>(Depreciation)** | **Balance as of<br>December 31, 2022** | **Change in**<br>**Unrealized<br>Appreciation/<br>(Depreciation)<br>from Investments<br>Held at**<br>**December 31,<br>2022** |
| Common Stocks |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | $2246394 | $— | $(1329297) | $917097 | $(1329297) |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 4090923 |  | (2919647) | 1171276 | (2919647) |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 7767844 |  | (2151931) | 5615913 | (2151931) |
| Convertible Preferred Stocks |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | 13496433 |  | (4139857) | 9356576 | (4139857) |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | 15921722 |  | (7760778) | 8160944 | (7760778) |
| &nbsp;&nbsp;&nbsp;&nbsp; Software |  | 435243 |  | 435243 |  |
|  | $43523316 | $435243 | $(18301510) | $25657049 | $(18301510) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fair Value at<br>December 31,<br>2022** | **Valuation Technique(s)** | **Unobservable Input** | **Range** | **Range** | **Weighted<br>Average** | **Relationship<br>Between Fair<br>Value and<br>Input; if input<br>value increases<br>then Fair Value:** |
| Common Stock |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | $917097 (a) | Market Transaction Method | Precedent Transaction | $118.75 | $125.00 | $121.88 | Increase |
|  |  | Comparable Company Analysis | Enterprise Value/GMV | 0.29x | 0.41x | 0.33x | Increase |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Services | 1171276 | Comparable Company Analysis | Enterprise Value/Gross Profit | 11.8x | 15.3x | 13.6x | Increase |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 5406344 | Market Transaction Method | Precedent Transaction | $930.00 | $930.00 | $930.00 | Increase |
|  |  | Comparable Company Analysis | Enterprise Value/Sales | 3.5x | 4.4x | 4.0x | Increase |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
|  | 209569 | Market Transaction Method | Precedent Transaction (Split Adj.) | $19.20 | $19.20 | $19.20 | Increase |
| Convertible Preferred Stocks |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Automobiles | 3986713 (a) | Discounted Projected Multiple | Enterprise Value/Sales | 1.5x | 15.3x | 5.5x | Increase |
|  |  |  | Discount Rate | 25.00% | 25.00% | 25.00% | Decrease |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
|  | 2494805 (b) | Discounted Cash Flow | Discount Rate | 25.00% | 25.00% | 25.00% | Decrease |
|  | 1624269 (a) | Market Transaction Method | Precedent Transaction | $41.27 | $41.27 | $41.27 | Increase |
|  |  | Comparable Company Analysis | Enterprise Value/Revenue | 6.2x | 6.2x | 6.2x | Increase |
|  |  |  | Enterprise Value/EBITDA | 4.3x | 4.3x | 4.3x | Increase |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
|  | 1250789 (a) | Market Transaction Method | Precedent Transaction | $91.72 | $91.72 | $91.72 | Increase |
|  |  | Discounted Projected Multiple | Enterprise Value/Sales | 2.2x | 15.3x | 6.5x | Increase |
|  |  |  | Discount Rate | 25.00% | 25.00% | 25.00% | Decrease |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet & Direct Marketing Retail | 4358552 | Comparable Company Analysis | Price/Earnings Multiple | 7.4x | 17.5x | 12.5x | Increase |
|  |  |  | Enterprise Value/Sales | 3.4x | 3.4x | 3.4x | Increase |
|  |  |  | Trailing Dividend Yield | 4.90% | 4.90% | 4.90% | Decrease |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
|  | 1902937 (a) | Market Transaction Method | Precedent Transaction | $118.75 | $125.00 | $121.88 | Increase |
|  |  | Comparable Company Analysis | Enterprise Value/GMV | 0.29x | 0.41x | 0.33x | Increase |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
|  | 1899455 (a) | Market Transaction Method | Precedent Transaction | $64.42 | $64.42 | $64.42 | Increase |
|  |  | Comparable Company Analysis | Enterprise Value/Sales | 2.3x | 3.0x | 2.7x | Increase |
|  |  |  | Enterprise Value/GMV | 0.5x | 0.5x | 0.5x | Increase |
|  |  |  | Discount for Lack of Marketability | 10.00% | 10.00% | 10.00% | Decrease |
| &nbsp;&nbsp;&nbsp;&nbsp; Software | 435243 | Market Transaction Method | Precedent Transaction | $369.79 | $369.79 | $369.79 | Increase |

---

(a) For the year ended December 31, 2022, the valuation technique for investments amounting to $11,581,260 changed to a
multi-tiered approach. The investments were previously valued utilizing only the precedent transaction price. The change was due to the consideration of the most recent financial information that was available at the time the investments were
valued.

(b) For the year ended December 31, 2022, the valuation technique for investments amounting to $2,494,805 changed to a
discounted cash flow method. The investments were previously valued utilizing a precedent transaction price. The change was due to the consideration of the most recent financial information that was available at the time the investments were valued.

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1790983004 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (c) | 80378630 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1300000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (d) | 1068 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 1650379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 2299127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 210363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on affiliated investments | 192740 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 6716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1877022027 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 149796537 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 435203 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 799228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 170152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 176114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 197263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 151574497 |
|  **Net Assets** | $1725447530 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1520599555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 204847975 |
|  **Net Assets** | $1725447530 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $940988018 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 757888979 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 26570533 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 66758140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 56495148 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1931396 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $14.10 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 13.42 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 13.76 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments, excluding affiliated investments, was $1,507,883,314.

(b) Includes securities loaned at value of $145,956,827.

(c) Identified cost of affiliated investments was $80,378,630.

(d) Identified cost of cash denominated in foreign currencies was $1,038.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $8053221 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 638468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 616363 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 9308052 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 12410444 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 87974 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 110519 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 2281176 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 51444 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 56752 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 87936 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 18513 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 23433 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 15182846 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (1558907) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 13623939 |
|  **Net Investment Loss** | (4315887) |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (72262478) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | 14449 |
|  Net realized gain (loss) | (72248029) |
| Net change in unrealized appreciation (depreciation) on: | Net change in unrealized appreciation (depreciation) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (1079294356) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (13) |
|  Net change in unrealized appreciation (depreciation) | (1079294369) |
|  Net realized and unrealized gain (loss) | (1151542398) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(1155858285) |

---

(a) Net of foreign withholding taxes of $131,135.

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $(4315887) | $(9296197) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (72248029) | 447750178 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (1079294369) | 85191466 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (1155858285) | 523645447 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (234334024) | (167172412) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (196064384) | (139704635) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (7160168) | (5966155) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Return of Capital** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (268119) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (224332) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (8192) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (438059219) | (312843202) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 496138148 | (121783411) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (1097779356) | 89018834 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 2823226886 | 2734208052 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $1725447530 | $2823226886 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 4855504 | $105816814 | 1170522 | $35484565 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 15619317 | 234602143 | 5947080 | 167172412 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2515907) | (48783830) | (10659583) | (326075286) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 17958914 | $291635127 | (3541981) | $(123418309) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 5967725 | $112865385 | 2992998 | $87816552 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 13716891 | 196288716 | 5143764 | 139704635 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (5765886) | (105167463) | (7600057) | (223743951) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 13918730 | $203986638 | 536705 | $3777236 |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 71309 | $1293534 | 148109 | $4393635 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 488641 | 7168360 | 215774 | 5966155 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (391485) | (7945511) | (417580) | (12502128) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 168465 | $516383 | (53697) | $(2142338) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $496138148 |  | $(121783411) |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $30.81 | $28.79 | $22.93 | $20.71 | $25.34 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.02) | (0.06) | (0.01) | 0.06 | 0.11 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (12.17) | 5.55 | 7.90 | 5.91 | 0.23 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.19) | 5.49 | 7.89 | 5.97 | 0.34 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.06) | (0.10) | (0.11) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (4.52) | (3.47) | (1.97) | (3.65) | (4.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (4.52) | (3.47) | (2.03) | (3.75) | (4.97) |
|  **Net Asset Value, End of Period** | $14.10 | $30.81 | $28.79 | $22.93 | $20.71 |
|  **Total Return (%)** (c) | (40.46) | 20.22 | 36.95 | 30.99 | (0.94) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.62 | 0.62 | 0.63 | 0.63 | 0.62 |
|  Net ratio of expenses to average net assets (%) (d)(e) | 0.55 | 0.54 | 0.55 | 0.55 | 0.55 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.10) | (0.21) | (0.05) | 0.26 | 0.45 |
|  Portfolio turnover rate (%) | 31 | 21 | 33 | 26 | 39 |
|  Net assets, end of period (in millions) | $941.0 | $1503.7 | $1507.0 | $1427.4 | $1259.7 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $29.74 | $27.96 | $22.32 | $20.25 | $24.87 |
|  **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** | **Income (Loss) from Investment Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.06) | (0.14) | (0.07) | 0.00 (f) | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (11.74) | 5.39 | 7.68 | 5.76 | 0.24 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (11.80) | 5.25 | 7.61 | 5.76 | 0.29 |
|  **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** | **Less Distributions** |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.00)(g) | (0.04) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (4.52) | (3.47) | (1.97) | (3.65) | (4.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (4.52) | (3.47) | (1.97) | (3.69) | (4.91) |
|  **Net Asset Value, End of Period** | $13.42 | $29.74 | $27.96 | $22.32 | $20.25 |
|  **Total Return (%)** (c) | (40.67) | 19.95 | 36.64 | 30.59 | (1.15) |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Gross ratio of expenses to average net assets (%) | 0.87 | 0.87 | 0.88 | 0.88 | 0.87 |
|  Net ratio of expenses to average net assets (%) (d)(e) | 0.80 | 0.79 | 0.80 | 0.80 | 0.80 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.35) | (0.46) | (0.30) | 0.01 | 0.21 |
|  Portfolio turnover rate (%) | 31 | 21 | 33 | 26 | 39 |
|  Net assets, end of period (in millions) | $757.9 | $1266.1 | $1175.6 | $973.6 | $801.5 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $30.29 | $28.39 | $22.63 | $20.49 | $25.11 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.05) | (0.11) | (0.05) | 0.02 | 0.07 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (11.96) | 5.48 | 7.80 | 5.84 | 0.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (12.01) | 5.37 | 7.75 | 5.86 | 0.32 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.02) | (0.07) | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (4.52) | (3.47) | (1.97) | (3.65) | (4.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from return of capital | (0.00)(b) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (4.52) | (3.47) | (1.99) | (3.72) | (4.94) |
|  **Net Asset Value, End of Period** | $13.76 | $30.29 | $28.39 | $22.63 | $20.49 |
|  **Total Return (%)** (c) | (40.58) | 20.08 | 36.79 | 30.70 | (1.05) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.77 | 0.77 | 0.78 | 0.78 | 0.77 |
|  Net ratio of expenses to average net assets (%) (d)(e) | 0.70 | 0.69 | 0.70 | 0.70 | 0.70 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.25) | (0.36) | (0.20) | 0.11 | 0.30 |
|  Portfolio turnover rate (%) | 31 | 21 | 33 | 26 | 39 |
|  Net assets, end of period (in millions) | $26.6 | $53.4 | $51.6 | $42.0 | $35.8 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Distributions from return of capital were less than $0.01.

(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(d) The effect of the voluntary portion of the waiver on the net ratio of expenses to average net assets was 0.02% for the year ended December 31, 2022, 0.03% for the year ended December 31, 2021, and 0.02% for
each of the years ended December 31, 2020 through 2018 (see Note 5 of the Notes to Financial Statements).

(e) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

(f) Net investment income (loss) was less than $0.01.

(g) Distributions from net investment income were less than $0.01.

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is T. Rowe Price Large Cap Growth Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. Book-tax differences are primarily due to net operating losses. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $30,796,537, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $645089411 | $0 | $633975044 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $12410444 | 0.650% | Of the first $50 million |
|  | 0.600% | On amounts in excess of $50 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. T. Rowe Price Associates, Inc. ("T. Rowe Price") is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers -** Pursuant to a management fee waiver agreement, the Adviser has agreed for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows provided the Portfolio's average daily net assets exceed $1 billion.

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.080% | On the first $50 million |
| 0.050% | Of the next $50 million |
| 0.060% | Of the next $900 million |
| 0.035% | Of the next $500 million |
| 0.050% | Of the next $1.5 billion |
| 0.075% | On amounts in excess of $3 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 amounted to $1,062,151 and are included in the total amount shown as management fee waivers in the Statement of Operations.

T. Rowe Price agreed to a voluntary subadvisory fee waiver that applies if (i) assets under management by T. Rowe Price for the Trust and Brighthouse Funds Trust I ("BHFTI), an affiliate of the Trust, in the aggregate, exceed $750 million, (ii) T. Rowe Price subadvises three or more portfolios of the Trust and BHFTI in the aggregate, and (iii) at least one of those portfolios is a large cap domestic equity portfolio.

If the aforementioned conditions are met, T. Rowe Price will waive its subadvisory fee paid by Brighthouse Investment Advisers by 5% for combined Trust and BHFTI average daily net assets over $750 million, 7.5% for the next $1.5 billion of combined assets, and 10% for amounts over $3 billion. Brighthouse Investment Advisers has voluntarily agreed to reduce its advisory fee for the Portfolio by the amount waived (if any) by T. Rowe Price for the Portfolio pursuant to this voluntary subadvisory fee waiver. Because these fee waivers are voluntary, and not contractual, they may be discontinued by T. Rowe Price and Brighthouse Investment Advisers at any time. Amounts voluntarily waived by Brighthouse Investment Advisers for the year ended December 31, 2022 amounted to $496,756 and are included in the total amount shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of Brighthouse Investment Advisers however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Transactions in Securities of Affiliated Issuers** 

A summary of the Portfolio's transactions in the securities of affiliated issuers during the year ended December 31, 2022 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Ending Value as of<br>December 31, 2022** | **Income earned from<br>affiliates during the period** | **Number of shares held<br>December 31, 2022** |
| T. Rowe Price Government Reserve Fund | $40572196 | $446997585 | $(407191151) | $80378630 | $638468 | 80378630 |

---

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1602827400 |
|  Gross unrealized appreciation | 441214104 |
|  Gross unrealized (depreciation) | (172679870) |
|  Net unrealized appreciation (depreciation) | $268534234 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Return of capital** | **Return of capital** | **Total** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2022**  | **2021** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $43467423 | $40942869 | $394091153 | $271900333 | $500643 | $— | $438059219 | $312843202 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $— | $– $| 268534347 | $(63510258) | $205024089 |

---

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $63,510,258.

**9. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03 — Fair Value Measurement (Topic 820) — Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the T. Rowe Price Large Cap Growth Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the T. Rowe Price Large Cap Growth Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the T. Rowe Price Large Cap Growth Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*T. Rowe Price Large Cap Growth Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and T. Rowe Price Associates, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-, three-, and five-year periods ended June 30, 2022. The Board also considered that the Portfolio underperformed its benchmark, the Russell 1000 Growth Index, for the one-, three-, and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Large Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Managed by T. Rowe Price Associates, Inc.** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B, E and G shares of the T. Rowe Price Small Cap Growth Portfolio returned -22.15%, -22.34%, -22.28%, and -22.40%, respectively. The Portfolio's benchmark, the MSCI U.S. Small Cap Growth Index¹, returned -26.16%.

**MARKET ENVIRONMENT / CONDITIONS** 

Major U.S. stock indexes fell sharply in 2022, the worst year for equities since the 2008 global financial crisis. Investors shunned riskier assets in response to Russia's invasion of Ukraine, elevated inflation exacerbated by rising commodity prices and global supply chain disruptions, surging U.S. Treasury yields, tightening financial conditions, and slowing economic and corporate earnings growth. The U.S. Federal Reserve's (the "Fed") aggressive short-term interest rate hikes that began in March, as well as comments that it would be willing to risk causing a recession by raising rates and keeping them at a higher level in order to bring inflation down, also weighed on the market. Although many indexes finished the year above their lowest levels of 2022, the year ended with many investors concerned that ongoing Fed rate hikes would hurt corporate earnings and push the economy into a recession in 2023.

Domestic investment grade and high yield bond prices tumbled in 2022. U.S. Treasury yields rose sharply, and the U.S. Treasury yield curve inverted during the year as short- and intermediate-term yields rose above longer-term yields. Historically, this has often signaled an approaching recession. In the investment grade universe, corporate bonds fell sharply as interest rates rose and credit spreads—the yield difference between higher- and lower-quality issues—widened amid concerns that Fed rate hikes would weaken the economy and corporate earnings.

Stocks in developed non-U.S. markets declined in 2022, as elevated inflation prompted many central banks to tighten their monetary policies. Developed European markets fell broadly in U.S. dollar terms. Stocks in Sweden, the Netherlands, Ireland, and Austria were among the worst performers, while Norway, Denmark, and the U.K. held up well. Developed markets in Asia also fell broadly. Stocks in Hong Kong and Australia held up best, while Japanese shares performed the worst. Stocks in emerging markets fared worse than developed non-U.S. markets in 2022. Emerging Asian markets were mostly lower in U.S. dollar terms. Shares in China, South Korea, and Taiwan fell, while shares in Thailand and Indonesia rose.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

The Portfolio posted negative returns but outperformed its benchmark, the MSCI U.S. Small Cap Growth Index (the "Index"), during the reporting period. Broadly speaking, stock selection primarily contributed to relative outperformance.

Stock selection in the Information Technology ("IT") sector contributed the most to the Portfolio's relative performance. Fair Isaac Corp., a company best known for its FICO score-related products, provides companies with analytic, software, and data management products and services that enable its customers to make critical business decisions. Recent news of the Federal Housing Finance Agency's validation and approval of a new FICO credit score model for use by other government-sponsored agencies removes what was a large overhang for investors on the long-term outlook.

Contributors to relative results also included stock selection in the Industrials sector. Booz Allen Hamilton is a highly regarded management consulting, technology, and engineering services company that works with the U.S. government and its agencies on defense and intelligence matters. Shares traded up during the period as reported organic growth beat its industry peers, and investors favored the company's increased focus in high-growth areas such as cybersecurity and artificial intelligence.

Stock choices in the Health Care sector also aided relative returns, led by a position in Molina Healthcare. Molina Healthcare is a Medicaid managed care company. The company contracts with various state governments to provide health care coverage for lower-income individuals.

In contrast, the Energy sector was the largest detractor from relative results, primarily due to unfavorable security selection. SM Energy is an independent oil and natural gas company engaged in acquisition, exploitation, exploration, and production activities. Shares underperformed the broader sector and market during the period as supply chain delays contributed to the company missing production expectations, raising near-term concern for investors.

Adverse stock picks in the Materials sector also weighed on relative performance. Scotts Miracle-Gro produces and distributes lawn and garden care products with a portfolio including strong brands such as Scotts, Miracle-Gro, and Ortho. Shares traded lower as weather proved to be a meaningful headwind for retail sales in 2022 as a late spring weather start dampened sales in fertilizer and grass seed products. Furthermore, higher-than-expected commodity costs also contributed to more conservative guidance by the company in 2022.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Managed by T. Rowe Price Associates, Inc.** 

**Portfolio Manager Commentary\*—(Continued)** 

At the end of the period, the Portfolio was slightly overweight relative to the benchmark in the Utilities, Health Care, Real Estate, IT, and Consumer Staples sectors. The Portfolio was slightly underweight relative to the benchmark in Financials, Communication Services, Materials, Energy, Industrials, and Consumer Discretionary sectors. While our stock selection is primarily based on a quantitative model, we take into consideration the fundamental research conducted by T. Rowe Price's equity analysts. In constructing the Portfolio, our sector weights are usually in line with those of the Index, but we will occasionally overweight or underweight certain sectors based on our analysis.

**Sudhir Nanda** 

Portfolio Manager

*T. Rowe Price Associates, Inc.* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

¹ The MSCI U.S. Small Cap Growth Index represents companies in the MSCI U.S. Small Cap 1750 Index exhibiting an overall growth orientation (the MSCI U.S. Small Cap 1750 Index represents the universe of small capitalization companies in the U.S. equity market). It is a free float-adjusted, market cap-weighted index.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE MSCI U.S. SMALL CAP GROWTH INDEX**![LOGO](g400324g78x51.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** | **Since Inception<sup>1</sup>** |
| &nbsp;&nbsp;&nbsp;**T. Rowe Price Small Cap Growth Portfolio** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -22.15 | 6.11 | 11.35 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -22.34 | 5.84 | 11.07 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -22.28 | 5.95 | 11.18 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class G** | -22.40 | 5.79 |  | 8.02 |
| &nbsp;&nbsp;&nbsp;**MSCI U.S. Small Cap Growth Index** | -26.16 | 5.84 | 10.38 |  |

---

<sup>1</sup> Inception dates of the Class A, Class B, Class E and Class G shares are 3/3/97, 7/30/02, 5/1/01 and 11/12/14, respectively.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Halozyme Therapeutics, Inc.** | **1.0** |
| **Casella Waste Systems, Inc. - Class A** | **1.0** |
| **Lattice Semiconductor Corp.** | **0.9** |
| **Ensign Group, Inc. (The)** | **0.9** |
| **Manhattan Associates, Inc.** | **0.9** |
| **ExlService Holdings, Inc.** | **0.8** |
| **Saia, Inc.** | **0.8** |
| **CACI International, Inc. - Class A** | **0.8** |
| **Graphic Packaging Holding Co.** | **0.8** |
| **Molina Healthcare, Inc.** | **0.8** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Health Care** | **24.0** |
| **Industrials** | **20.0** |
| **Information Technology** | **19.4** |
| **Consumer Discretionary** | **12.9** |
| **Consumer Staples** | **4.7** |
| **Energy** | **4.5** |
| **Materials** | **4.5** |
| **Financials** | **4.1** |
| **Communication Services** | **2.7** |
| **Real Estate** | **1.4** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<br>T. Rowe Price Small Cap Growth Portfolio** |  | **<br>Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.48% | $1000.00 | $1058.70 | $2.49 |
|  | Hypothetical\* | 0.48% | $1000.00 | $1022.79 | $2.45 |
|  Class B (a) | Actual | 0.73% | $1000.00 | $1057.60 | $3.79 |
|  | Hypothetical\* | 0.73% | $1000.00 | $1021.53 | $3.72 |
|  Class E (a) | Actual | 0.63% | $1000.00 | $1058.10 | $3.27 |
|  | Hypothetical\* | 0.63% | $1000.00 | $1022.03 | $3.21 |
|  Class G (a) | Actual | 0.78% | $1000.00 | $1057.40 | $4.04 |
|  | Hypothetical\* | 0.78% | $1000.00 | $1021.27 | $3.97 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—99.1% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Aerospace & Defense—1.8%** | **Aerospace & Defense—1.8%** | **Aerospace & Defense—1.8%** |
|  Aerojet Rocketdyne Holdings, Inc. (a) | 77900 | $4356947 |
|  Cadre Holdings, Inc. (b) | 39400 | 793516 |
|  Curtiss-Wright Corp. | 49796 | 8315434 |
|  Hexcel Corp. (b) | 61192 | 3601149 |
|  Mercury Systems, Inc. (a) (b) | 35269 | 1577935 |
|  Moog, Inc. - Class A | 24439 | 2144767 |
|  |  | 20789748 |
| **Air Freight & Logistics—0.4%** | **Air Freight & Logistics—0.4%** | **Air Freight & Logistics—0.4%** |
|  GXO Logistics, Inc. (a) | 97701 | 4170856 |
| **Auto Components—0.4%** | **Auto Components—0.4%** | **Auto Components—0.4%** |
|  Dorman Products, Inc. (a) | 34043 | 2753057 |
|  LCI Industries | 6984 | 645671 |
|  Patrick Industries, Inc. (b) | 13528 | 819797 |
|  |  | 4218525 |
| **Banks—0.6%** | **Banks—0.6%** | **Banks—0.6%** |
|  Bancorp, Inc. (The) (a) | 82487 | 2340981 |
|  First Bancorp | 37855 | 1621708 |
|  ServisFirst Bancshares, Inc. (b) | 11700 | 806247 |
|  Western Alliance Bancorp | 34558 | 2058275 |
|  |  | 6827211 |
| **Beverages—0.7%** | **Beverages—0.7%** | **Beverages—0.7%** |
|  Boston Beer Co., Inc. (The) - Class A (a) | 4815 | 1586639 |
|  Coca-Cola Consolidated, Inc. | 12014 | 6155493 |
|  |  | 7742132 |
| **Biotechnology—9.6%** | **Biotechnology—9.6%** | **Biotechnology—9.6%** |
|  ACADIA Pharmaceuticals, Inc. (a) (b) | 119864 | 1908235 |
|  Agios Pharmaceuticals, Inc. (a) (b) | 49759 | 1397233 |
|  Akero Therapeutics, Inc. (a) (b) | 29600 | 1622080 |
|  Alector, Inc. (a) (b) | 49782 | 459488 |
|  Alkermes plc (a) | 176015 | 4599272 |
|  Allogene Therapeutics, Inc. (a) (b) | 61692 | 388043 |
|  Amicus Therapeutics, Inc. (a) | 172976 | 2112037 |
|  Apellis Pharmaceuticals, Inc. (a) (b) | 74327 | 3843449 |
|  Avidity Biosciences, Inc. (a) | 39028 | 866031 |
|  Biohaven, Ltd. (a) (b) | 46551 | 646128 |
|  Blueprint Medicines Corp. (a) (b) | 65925 | 2888174 |
|  C4 Therapeutics, Inc. (a) (b) | 12500 | 73750 |
|  CareDx, Inc. (a) (b) | 38087 | 434573 |
|  Catalyst Pharmaceuticals, Inc. (a) | 119400 | 2220840 |
|  Cerevel Therapeutics Holdings, Inc. (a) (b) | 70166 | 2213036 |
|  CRISPR Therapeutics AG (a) (b) | 60182 | 2446398 |
|  Cytokinetics, Inc. (a) | 66802 | 3060868 |
|  Denali Therapeutics, Inc. (a) (b) | 69287 | 1926871 |
|  Exelixis, Inc. (a) | 172499 | 2766884 |
|  Fate Therapeutics, Inc. (a) (b) | 57610 | 581285 |
|  FibroGen, Inc. (a) | 46600 | 746532 |
|  Generation Bio Co. (a) | 68300 | 268419 |
|  Halozyme Therapeutics, Inc. (a) (b) | 202154 | 11502563 |
|  Horizon Therapeutics plc (a) | 63330 | 7206954 |
|  IGM Biosciences, Inc. (a) (b) | 22768 | 387284 |
| **Biotechnology—(Continued)** | **Biotechnology—(Continued)** | **Biotechnology—(Continued)** |
|  Insmed, Inc. (a) (b) | 190077 | 3797738 |
|  Intellia Therapeutics, Inc. (a) | 55887 | 1949897 |
|  Ionis Pharmaceuticals, Inc. (a) | 121447 | 4587053 |
|  Iovance Biotherapeutics, Inc. (a) (b) | 94444 | 603497 |
|  IVERIC bio, Inc. (a) | 71149 | 1523300 |
|  Karuna Therapeutics, Inc. (a) | 22235 | 4369177 |
|  Kymera Therapeutics, Inc. (a) (b) | 45795 | 1143043 |
|  Madrigal Pharmaceuticals, Inc. (a) (b) | 7074 | 2053228 |
|  Mirati Therapeutics, Inc. (a) | 29546 | 1338729 |
|  Monte Rosa Therapeutics, Inc. (a) (b) | 9800 | 74578 |
|  Morphic Holding, Inc. (a) | 16800 | 449400 |
|  Natera, Inc. (a) (b) | 60579 | 2433458 |
|  Neurocrine Biosciences, Inc. (a) | 32797 | 3917274 |
|  Nurix Therapeutics, Inc. (a) | 23600 | 259128 |
|  Prothena Corp. plc (a) | 51805 | 3121251 |
|  PTC Therapeutics, Inc. (a) | 77121 | 2943709 |
|  Replimune Group, Inc. (a) | 62509 | 1700245 |
|  REVOLUTION Medicines, Inc. (a) (b) | 63356 | 1509140 |
|  Rocket Pharmaceuticals, Inc. (a) (b) | 49031 | 959537 |
|  Sage Therapeutics, Inc. (a) | 41892 | 1597761 |
|  Sarepta Therapeutics, Inc. (a) | 27123 | 3514598 |
|  Scholar Rock Holding Corp. (a) (b) | 59694 | 540231 |
|  Seagen, Inc. (a) | 17358 | 2230677 |
|  Twist Bioscience Corp. (a) (b) | 38123 | 907709 |
|  Ultragenyx Pharmaceutical, Inc. (a) | 60251 | 2791429 |
|  Xencor, Inc. (a) (b) | 80808 | 2104240 |
|  Zentalis Pharmaceuticals, Inc. (a) (b) | 24973 | 502956 |
|  |  | 109489410 |
| **Building Products—1.7%** |  |  |
|  AAON, Inc. (b) | 41300 | 3110716 |
|  Builders FirstSource, Inc. (a) | 88730 | 5756802 |
|  CSW Industrials, Inc. | 26131 | 3029367 |
|  Gibraltar Industries, Inc. (a) | 18223 | 836071 |
|  UFP Industries, Inc. | 91560 | 7256130 |
|  |  | 19989086 |
| **Capital Markets—1.6%** |  |  |
|  Blue Owl Capital, Inc. (b) | 285122 | 3022293 |
|  FactSet Research Systems, Inc. | 11669 | 4681719 |
|  LPL Financial Holdings, Inc. | 30633 | 6621936 |
|  MarketAxess Holdings, Inc. | 15701 | 4378852 |
|  |  | 18704800 |
| **Chemicals—2.4%** |  |  |
|  Axalta Coating Systems, Ltd. (a) | 167244 | 4259704 |
|  Balchem Corp. | 42243 | 5158293 |
|  Element Solutions, Inc. | 239559 | 4357578 |
|  HB Fuller Co. (b) | 56208 | 4025617 |
|  Ingevity Corp. (a) | 47954 | 3377880 |
|  Livent Corp. (a) (b) | 199105 | 3956216 |
|  Olin Corp. | 39072 | 2068472 |
|  |  | 27203760 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Commercial Services & Supplies—2.6%** | | |
|  Casella Waste Systems, Inc. - Class A (a) | 143282 | $11363695 |
|  Clean Harbors, Inc. (a) | 59124 | 6747231 |
|  IAA, Inc. (a) | 102700 | 4108000 |
|  MSA Safety, Inc. | 18006 | 2596285 |
|  Rentokil Initial plc (ADR) (b) | 175184 | 5397419 |
|  |  | 30212630 |
| **Communications Equipment—0.3%** |  |  |
|  Lumentum Holdings, Inc. (a) (b) | 57845 | 3017774 |
|  Ubiquiti, Inc. (b) | 3502 | 957902 |
|  |  | 3975676 |
| **Construction & Engineering—2.2%** |  |  |
|  Comfort Systems USA, Inc. (b) | 67402 | 7756622 |
|  EMCOR Group, Inc. | 57545 | 8522990 |
|  NV5 Global, Inc. (a) (b) | 21939 | 2902969 |
|  WillScot Mobile Mini Holdings Corp. (a) (b) | 133500 | 6030195 |
|  |  | 25212776 |
| **Construction Materials—0.4%** |  |  |
|  Eagle Materials, Inc. | 32606 | 4331707 |
| **Consumer Finance—0.2%** |  |  |
|  SLM Corp. | 112026 | 1859632 |
| **Containers & Packaging—1.0%** |  |  |
|  Berry Global Group, Inc. | 35174 | 2125565 |
|  Graphic Packaging Holding Co. | 404825 | 9007356 |
|  |  | 11132921 |
| **Distributors—0.4%** |  |  |
|  Pool Corp. | 16122 | 4874164 |
| **Diversified Consumer Services—0.7%** |  |  |
|  Bright Horizons Family Solutions, Inc. (a) | 13663 | 862135 |
|  Carriage Services, Inc. | 31561 | 869190 |
|  Grand Canyon Education, Inc. (a) | 35689 | 3770900 |
|  PowerSchool Holdings, Inc. - Class A (a) | 95100 | 2194908 |
|  |  | 7697133 |
| **Diversified Telecommunication Services—0.7%** |  |  |
|  Cogent Communications Holdings, Inc. | 17025 | 971787 |
|  Iridium Communications, Inc. (a) | 140557 | 7224630 |
|  |  | 8196417 |
| **Electrical Equipment—0.9%** |  |  |
|  Atkore, Inc. (a) | 74007 | 8393874 |
|  Shoals Technologies Group, Inc. - Class A (a) | 88800 | 2190696 |
|  |  | 10584570 |
| **Electronic Equipment, Instruments & Components—2.8%** |  |  |
|  Advanced Energy Industries, Inc. | 53457 | 4585542 |
|  Cognex Corp. | 25935 | 1221798 |
|  ePlus, Inc. (a) | 17134 | 758694 |
| **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** | **Electronic Equipment, Instruments & Components—(Continued)** |
|  Fabrinet (a) (b) | 60902 | 7808854 |
|  Littelfuse, Inc. | 11121 | 2448844 |
|  Novanta, Inc. (a) (b) | 56139 | 7627606 |
|  Teledyne Technologies, Inc. (a) | 12733 | 5092054 |
|  Zebra Technologies Corp. - Class A (a) | 10681 | 2738715 |
|  |  | 32282107 |
| **Energy Equipment & Services—1.5%** |  |  |
|  Cactus, Inc. - Class A | 53894 | 2708712 |
|  ChampionX Corp. | 83136 | 2410113 |
|  Nabors Industries, Ltd. (a) (b) | 12800 | 1982336 |
|  TechnipFMC plc (a) | 498498 | 6076691 |
|  Weatherford International plc (a) | 77872 | 3965242 |
|  |  | 17143094 |
| **Entertainment—0.9%** |  |  |
|  Endeavor Group Holdings, Inc. - Class A (a) (b) | 214000 | 4823560 |
|  World Wrestling Entertainment, Inc. - Class A (b) | 74806 | 5125707 |
|  |  | 9949267 |
| **Equity Real Estate Investment Trusts—1.4%** |  |  |
|  Equity LifeStyle Properties, Inc. | 38214 | 2468624 |
|  First Industrial Realty Trust, Inc. | 81430 | 3929812 |
|  Life Storage, Inc. | 25140 | 2476290 |
|  Rexford Industrial Realty, Inc. | 52507 | 2868983 |
|  Ryman Hospitality Properties, Inc. | 21260 | 1738643 |
|  Terreno Realty Corp. | 36881 | 2097422 |
|  |  | 15579774 |
| **Food & Staples Retailing—1.4%** |  |  |
|  BJ's Wholesale Club Holdings, Inc. (a) | 61958 | 4099142 |
|  Casey's General Stores, Inc. | 13255 | 2973759 |
|  Performance Food Group Co. (a) | 147749 | 8627064 |
|  |  | 15699965 |
| **Food Products—1.7%** |  |  |
|  Darling Ingredients, Inc. (a) | 43513 | 2723478 |
|  Hostess Brands, Inc. (a) | 112600 | 2526744 |
|  Post Holdings, Inc. (a) | 87218 | 7872297 |
|  Simply Good Foods Co. (The) (a) | 165099 | 6278715 |
|  |  | 19401234 |
| **Health Care Equipment & Supplies—5.7%** |  |  |
|  AtriCure, Inc. (a) | 52374 | 2324358 |
|  CONMED Corp. (b) | 33380 | 2958803 |
|  Embecta Corp. (b) | 34200 | 864918 |
|  Globus Medical, Inc. - Class A (a) (b) | 107771 | 8004152 |
|  Haemonetics Corp. (a) | 57607 | 4530791 |
|  ICU Medical, Inc. (a) (b) | 26865 | 4230700 |
|  Inari Medical, Inc. (a) | 34905 | 2218562 |
|  Inspire Medical Systems, Inc. (a) | 32055 | 8074013 |
|  iRhythm Technologies, Inc. (a) | 32302 | 3025728 |
|  Lantheus Holdings, Inc. (a) | 98052 | 4996730 |
|  Merit Medical Systems, Inc. (a) | 105660 | 7461709 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Health Care Equipment & Supplies—(Continued)** | | |
|  Omnicell, Inc. (a) (b) | 60503 | $3050561 |
|  Penumbra, Inc. (a) (b) | 15589 | 3467929 |
|  PROCEPT BioRobotics Corp. (a) (b) | 39200 | 1628368 |
|  Shockwave Medical, Inc. (a) | 14213 | 2922335 |
|  STERIS plc (b) | 25004 | 4617989 |
|  Tandem Diabetes Care, Inc. (a) | 32851 | 1476653 |
|  |  | 65854299 |
| **Health Care Providers & Services—4.4%** |  |  |
|  Acadia Healthcare Co., Inc. (a) | 17000 | 1399440 |
|  Addus HomeCare Corp. (a) | 48605 | 4835711 |
|  Amedisys, Inc. (a) | 25685 | 2145725 |
|  AMN Healthcare Services, Inc. (a) | 78561 | 8077642 |
|  Chemed Corp. | 4070 | 2077450 |
|  Corvel Corp. (a) | 35271 | 5125934 |
|  Ensign Group, Inc. (The) | 110991 | 10500859 |
|  ModivCare, Inc. (a) | 17057 | 1530525 |
|  Molina Healthcare, Inc. (a) | 26981 | 8909666 |
|  Option Care Health, Inc. (a) | 202409 | 6090487 |
|  |  | 50693439 |
| **Health Care Technology—0.3%** |  |  |
|  Evolent Health, Inc. - Class A (a) (b) | 103251 | 2899288 |
| **Hotels, Restaurants & Leisure—6.1%** |  |  |
|  Bloomin' Brands, Inc. (b) | 96305 | 1937657 |
|  Boyd Gaming Corp. | 120919 | 6593713 |
|  Choice Hotels International, Inc. (b) | 65622 | 7391662 |
|  Churchill Downs, Inc. (b) | 38524 | 8145129 |
|  Domino's Pizza, Inc. | 8159 | 2826278 |
|  Everi Holdings, Inc. (a) | 153100 | 2196985 |
|  Hilton Grand Vacations, Inc. (a) | 90461 | 3486367 |
|  Papa John's International, Inc. | 50942 | 4193036 |
|  Planet Fitness, Inc. - Class A (a) | 64368 | 5072198 |
|  Red Rock Resorts, Inc. - Class A (b) | 95637 | 3826436 |
|  SeaWorld Entertainment, Inc. (a) (b) | 49335 | 2639916 |
|  Texas Roadhouse, Inc. | 87189 | 7929840 |
|  Travel and Leisure Co. | 56286 | 2048810 |
|  Vail Resorts, Inc. (b) | 15674 | 3735898 |
|  Wendy's Co. (The) | 323674 | 7324743 |
|  |  | 69348668 |
| **Household Durables—1.3%** |  |  |
|  Cavco Industries, Inc. (a) (b) | 14530 | 3287412 |
|  Helen of Troy, Ltd. (a) (b) | 3671 | 407151 |
|  Skyline Champion Corp. (a) | 59540 | 3066905 |
|  Tempur Sealy International, Inc. (b) | 140084 | 4809084 |
|  TopBuild Corp. (a) | 23376 | 3658110 |
|  |  | 15228662 |
| **Independent Power and Renewable Electricity Producers—0.6%** | **Independent Power and Renewable Electricity Producers—0.6%** |  |
|  Clearway Energy, Inc. - Class C | 81383 | 2593676 |
|  NextEra Energy Partners L.P. (b) | 38219 | 2678770 |
|  Ormat Technologies, Inc. | 21873 | 1891577 |
|  |  | 7164023 |
| **Insurance—1.7%** |  |  |
|  BRP Group, Inc. - Class A (a) | 57682 | 1450125 |
|  Palomar Holdings, Inc. (a) | 60857 | 2748302 |
|  Primerica, Inc. | 34898 | 4949234 |
|  Ryan Specialty Group Holdings, Inc. - Class A (a) (b) | 132758 | 5510785 |
|  Selective Insurance Group, Inc. | 57632 | 5106772 |
|  |  | 19765218 |
| **Interactive Media & Services—0.2%** |  |  |
|  Ziff Davis, Inc. (a) | 30310 | 2397521 |
| **IT Services—2.9%** |  |  |
|  Broadridge Financial Solutions, Inc. | 22193 | 2976747 |
|  Concentrix Corp. | 37600 | 5006816 |
|  Euronet Worldwide, Inc. (a) | 32099 | 3029504 |
|  EVERTEC, Inc. | 62147 | 2012320 |
|  ExlService Holdings, Inc. (a) | 56545 | 9580419 |
|  Gartner, Inc. (a) | 8923 | 2999377 |
|  Paya Holdings, Inc. (a) (b) | 231900 | 1825053 |
|  Perficient, Inc. (a) | 53384 | 3727805 |
|  SS&C Technologies Holdings, Inc. | 47258 | 2460251 |
|  |  | 33618292 |
| **Leisure Products—0.6%** |  |  |
|  Brunswick Corp. | 14260 | 1027861 |
|  Mattel, Inc. (a) | 355576 | 6343476 |
|  |  | 7371337 |
| **Life Sciences Tools & Services—2.5%** |  |  |
|  Adaptive Biotechnologies Corp. (a) | 65759 | 502399 |
|  Azenta, Inc. (a) (b) | 10261 | 597395 |
|  Bruker Corp. | 34991 | 2391635 |
|  Charles River Laboratories International, Inc. (a) | 22747 | 4956571 |
|  Maravai LifeSciences Holdings, Inc. - Class A (a) | 118125 | 1690369 |
|  Medpace Holdings, Inc. (a) (b) | 41126 | 8735574 |
|  NeoGenomics, Inc. (a) (b) | 33273 | 307442 |
|  Repligen Corp. (a) | 34746 | 5882845 |
|  West Pharmaceutical Services, Inc. | 17143 | 4034605 |
|  |  | 29098835 |
| **Machinery—4.3%** |  |  |
|  Albany International Corp. - Class A (b) | 38469 | 3792659 |
|  Evoqua Water Technologies Corp. (a) | 71725 | 2840310 |
|  Federal Signal Corp. | 60158 | 2795542 |
|  Graco, Inc. | 18001 | 1210747 |
|  John Bean Technologies Corp. | 47523 | 4340276 |
|  Kadant, Inc. | 32415 | 5757876 |
|  Lincoln Electric Holdings, Inc. | 31969 | 4619201 |
|  RBC Bearings, Inc. (a) (b) | 31202 | 6532139 |
|  SPX Technologies, Inc. (a) | 73114 | 4799934 |
|  Toro Co. (The) | 52013 | 5887872 |
|  Watts Water Technologies, Inc. - Class A | 42179 | 6167835 |
|  |  | 48744391 |
| **Media—0.9%** |  |  |
|  Nexstar Media Group, Inc. - Class A | 45889 | 8031952 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Media—(Continued)** | | |
|  TechTarget, Inc. (a) (b) | 16605 | $731616 |
|  Thryv Holdings, Inc. (a) (b) | 62815 | 1193485 |
|  |  | 9957053 |
| **Metals & Mining—0.5%** |  |  |
|  Alpha Metallurgical Resources, Inc. | 16400 | 2400796 |
|  Arconic Corp. (a) | 37022 | 783385 |
|  Royal Gold, Inc. | 26500 | 2987080 |
|  |  | 6171261 |
| **Oil, Gas & Consumable Fuels—3.0%** |  |  |
|  APA Corp. | 40109 | 1872288 |
|  Arch Resources, Inc. | 10894 | 1555554 |
|  Centrus Energy Corp. - Class A (a) (b) | 21700 | 704816 |
|  Enviva, Inc. (b) | 24600 | 1303062 |
|  Magnolia Oil & Gas Corp. - Class A (b) | 256502 | 6014972 |
|  Matador Resources Co. | 109742 | 6281632 |
|  PBF Energy, Inc. - Class A | 12400 | 505672 |
|  PDC Energy, Inc. | 31159 | 1977973 |
|  Range Resources Corp. | 186025 | 4654346 |
|  SM Energy Co. | 151861 | 5289319 |
|  Targa Resources Corp. | 28454 | 2091369 |
|  Texas Pacific Land Corp. (b) | 940 | 2203576 |
|  |  | 34454579 |
| **Paper & Forest Products—0.5%** |  |  |
|  Louisiana-Pacific Corp. | 90952 | 5384358 |
| **Personal Products—1.0%** |  |  |
|  BellRing Brands, Inc. (a) | 107059 | 2744993 |
|  Coty, Inc. - Class A (a) | 375102 | 3210873 |
|  Inter Parfums, Inc. (b) | 52039 | 5022804 |
|  |  | 10978670 |
| **Pharmaceuticals—1.5%** |  |  |
|  Amphastar Pharmaceuticals, Inc. (a) | 103400 | 2897268 |
|  Arvinas, Inc. (a) (b) | 41891 | 1433091 |
|  Catalent, Inc. (a) | 55049 | 2477755 |
|  DICE Therapeutics, Inc. (a) (b) | 33171 | 1034935 |
|  Intra-Cellular Therapies, Inc. (a) | 62700 | 3318084 |
|  Pacira BioSciences, Inc. (a) | 44834 | 1731041 |
|  Prestige Consumer Healthcare, Inc. (a) | 14500 | 907700 |
|  Supernus Pharmaceuticals, Inc. (a) (b) | 61085 | 2178902 |
|  Ventyx Biosciences, Inc. (a) | 23300 | 764007 |
|  |  | 16742783 |
| **Professional Services—3.2%** |  |  |
|  ASGN, Inc. (a) | 29811 | 2429001 |
|  Booz Allen Hamilton Holding Corp. | 70437 | 7362075 |
|  CACI International, Inc. - Class A (a) | 30132 | 9057378 |
|  CBIZ, Inc. (a) | 83221 | 3898904 |
|  Exponent, Inc. | 77347 | 7664314 |
|  Insperity, Inc. | 54542 | 6195971 |
|  |  | 36607643 |
| **Road & Rail—1.6%** |  |  |
|  Landstar System, Inc. | 28267 | 4604694 |
|  RXO, Inc. (a) | 57579 | 990359 |
|  Saia, Inc. (a) (b) | 43547 | 9130935 |
|  XPO Logistics, Inc. (a) | 99437 | 3310258 |
|  |  | 18036246 |
| **Semiconductors & Semiconductor Equipment—4.7%** |  |  |
|  Axcelis Technologies, Inc. (a) | 63596 | 5046978 |
|  Cirrus Logic, Inc. (a) | 41564 | 3095687 |
|  Diodes, Inc. (a) | 64965 | 4946435 |
|  Entegris, Inc. | 36235 | 2376654 |
|  FormFactor, Inc. (a) | 121568 | 2702456 |
|  Kulicke & Soffa Industries, Inc. (b) | 73934 | 3272319 |
|  Lattice Semiconductor Corp. (a) | 162569 | 10547477 |
|  MaxLinear, Inc. (a) | 116627 | 3959486 |
|  MKS Instruments, Inc. | 24663 | 2089696 |
|  Monolithic Power Systems, Inc. | 7206 | 2548114 |
|  Onto Innovation, Inc. (a) | 63019 | 4290964 |
|  Power Integrations, Inc. | 84057 | 6028568 |
|  Synaptics, Inc. (a) | 32923 | 3132953 |
|  |  | 54037787 |
| **Software—7.8%** |  |  |
|  A10 Networks, Inc. | 137411 | 2285145 |
|  ACI Worldwide, Inc. (a) | 76487 | 1759201 |
|  Alarm.com Holdings, Inc. (a) | 12088 | 598114 |
|  Aspen Technology, Inc. (a) (b) | 12004 | 2465622 |
|  Box, Inc. - Class A (a) (b) | 180809 | 5628584 |
|  Consensus Cloud Solutions, Inc. (a) (b) | 17766 | 955100 |
|  Descartes Systems Group, Inc. (The) (a) | 109245 | 7608914 |
|  Digital Turbine, Inc. (a) (b) | 89045 | 1357046 |
|  DoubleVerify Holdings, Inc. (a) | 41235 | 905521 |
|  Envestnet, Inc. (a) (b) | 59432 | 3666954 |
|  Fair Isaac Corp. (a) | 13119 | 7852771 |
|  Fortinet, Inc. (a) | 45580 | 2228406 |
|  Informatica, Inc. - Class A (a) (b) | 104800 | 1707192 |
|  Manhattan Associates, Inc. (a) | 82364 | 9998990 |
|  NCR Corp. (a) (b) | 104007 | 2434804 |
|  Paylocity Holding Corp. (a) | 23950 | 4652527 |
|  PTC, Inc. (a) | 38440 | 4614338 |
|  Qualys, Inc. (a) | 47902 | 5376041 |
|  Rapid7, Inc. (a) | 47949 | 1629307 |
|  Sapiens International Corp. NV (b) | 128062 | 2366586 |
|  SPS Commerce, Inc. (a) (b) | 58331 | 7491450 |
|  Tenable Holdings, Inc. (a) | 88859 | 3389971 |
|  Teradata Corp. (a) | 55682 | 1874256 |
|  Tyler Technologies, Inc. (a) | 13130 | 4233243 |
|  Workiva, Inc. (a) (b) | 22948 | 1926944 |
|  |  | 89007027 |
| **Specialty Retail—2.0%** |  |  |
|  Academy Sports & Outdoors, Inc. (b) | 69055 | 3628150 |
|  Asbury Automotive Group, Inc. (a) (b) | 6556 | 1175163 |
|  Burlington Stores, Inc. (a) | 9789 | 1984818 |
|  Dick's Sporting Goods, Inc. (b) | 35554 | 4276791 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal<br>Amount\*** | **Value** | **Value** |
| **Specialty Retail—(Continued)** | | | |
|  Floor & Decor Holdings, Inc. - Class A (a) (b) | 6643 | $| 462552 |
|  Murphy USA, Inc. | 28386 |  | 7935022 |
|  National Vision Holdings, Inc. (a) (b) | 42651 |  | 1653153 |
|  Penske Automotive Group, Inc. (b) | 13135 |  | 1509605 |
|  |  |  | 22625254 |
| **Technology Hardware, Storage & Peripherals—0.6%** |  |  |  |
|  Pure Storage, Inc. - Class A (a) | 276534 |  | 7400050 |
| **Textiles, Apparel & Luxury Goods—1.6%** |  |  |  |
|  Capri Holdings, Ltd. (a) | 97743 |  | 5602629 |
|  Crocs, Inc. (a) | 73224 |  | 7939678 |
|  Deckers Outdoor Corp. (a) | 13324 |  | 5318408 |
|  |  |  | 18860715 |
| **Trading Companies & Distributors—1.3%** |  |  |  |
|  Herc Holdings, Inc. (b) | 31575 |  | 4154323 |
|  McGrath RentCorp | 24854 |  | 2454084 |
|  SiteOne Landscape Supply, Inc. (a) (b) | 39936 |  | 4685292 |
|  Watsco, Inc. (b) | 12591 |  | 3140195 |
|  |  |  | 14433894 |
|  Total Common Stocks <br>(Cost $1,004,650,889) |  |  | 1134149888 |
| **Short-Term Investments—1.1%** | **Short-Term Investments—1.1%** | **Short-Term Investments—1.1%** | **Short-Term Investments—1.1%** |
| **Mutual Funds—1.1%** | **Mutual Funds—1.1%** | **Mutual Funds—1.1%** | **Mutual Funds—1.1%** |
| T. Rowe Price Government Reserve Fund (c) | 12481374 |  | 12481374 |
|  Total Short-Term Investments <br>(Cost $12,481,374) |  |  | 12481374 |
| **Securities Lending Reinvestments (d)—8.2%** | **Securities Lending Reinvestments (d)—8.2%** | **Securities Lending Reinvestments (d)—8.2%** | **Securities Lending Reinvestments (d)—8.2%** |
| **Certificates of Deposit—4.7%** | **Certificates of Deposit—4.7%** | **Certificates of Deposit—4.7%** | **Certificates of Deposit—4.7%** |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (e) | 2000000 |  | 2002702 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (e) | 3000000 |  | 3000000 |
|  Bank of Nova Scotia<br>4.710%, FEDEFF PRV + 0.380%, 01/06/23 (e) | 5000000 |  | 5000089 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (e) | 3000000 |  | 3001261 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (e) | 2000000 |  | 2002338 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (e) | 5000000 |  | 4999990 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (e) | 3000000 |  | 3001044 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (e) | 3000000 |  | 3000198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (e) | 3000000 |  | 3001148 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (e) | 3000000 |  | 3000213 |
| **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** |
|  Credit Industriel et Commercial<br>4.730%, SOFR + 0.430%, 01/06/23 (e) | 6000000 |  | 6000168 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (e) | 4000000 |  | 4001200 |
|  Nordea Bank Abp (NY)<br>4.800%, SOFR + 0.500%, 02/27/23 (e) | 3000000 |  | 3000831 |
|  Standard Chartered Bank (NY)<br>5.040%, SOFR + 0.740%, 05/02/23 (e) | 2000000 |  | 2003036 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (e) | 2000000 |  | 2000220 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (e) | 3000000 |  | 2999869 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (e) | 2000000 |  | 1999780 |
|  |  |  | 54014087 |
| **Commercial Paper—0.9%** |  |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (e) | 3000000 |  | 3004086 |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (e) | 4000000 |  | 4001080 |
|  UBS AG<br>4.870%, SOFR + 0.570%, 03/23/23 (e) | 3000000 |  | 3000000 |
|  |  |  | 10005166 |
| **Repurchase Agreements—1.8%** | **Repurchase Agreements—1.8%** | **Repurchase Agreements—1.8%** | **Repurchase Agreements—1.8%** |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $8,213,987; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $8,374,303. | 8210101 |  | 8210101 |
|  Citigroup Global Markets, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $4,100,106; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $4,080,001. | 4000000 |  | 4000000 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $2,040,963. | 2000000 |  | 2000000 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $3,703,108; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $3,782,799. | 3700000 |  | 3700000 |
|  Societe Generale |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $200,094; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $204,361. | 200000 |  | 200000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (d)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal<br>Amount\*** | **Value** |
| **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** | **Repurchase Agreements—(Continued)** |
|  Societe Generale |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $2,802,406; collateralized by various Common Stock with an aggregate market value of $3,116,937. | 2800000 | $2800000 |
|  |  | 20910101 |
| **Time Deposit—0.2%** |  |  |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (e) | 2000000 | 2000000 |
| **Mutual Funds—0.6%** | **Mutual Funds—0.6%** | **Mutual Funds—0.6%** |
|  STIT-Government & Agency Portfolio, Institutional Class<br>4.220% (f) | 5000000 | 5000000 |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (f) | 2000000 | 2000000 |
|  |  | 7000000 |
|  Total Securities Lending Reinvestments <br>(Cost $93,910,101) |  | 93929354 |
|  Total Investments—108.4% <br>(Cost $1,111,042,364) |  | 1240560616 |
|  Other assets and liabilities (net)—(8.4)% |  | (95618343) |
| **Net Assets—100.0%** |  | $1144942273 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $92,469,163 and the collateral received consisted of cash in the amount of $93,910,101 and non-cash collateral with a value of $888,189. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third- party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)

(d) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(e) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(f) The rate shown represents the annualized seven-day yield as of December 31, 2022.

**Glossary of Abbreviations** 

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (SOFR)— | Secured Overnight Financing Rate |

---

Other Abbreviations

------

(ADR)— American Depositary Receipt

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total Common Stocks\* | $1134149888 | $— | $— | $1134149888 |
|  Total Short-Term Investments\* | 12481374 |  |  | 12481374 |
| Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments | Securities Lending Reinvestments |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 54014087 |  | 54014087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 10005166 |  | 10005166 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 20910101 |  | 20910101 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposit |  | 2000000 |  | 2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 7000000 |  |  | 7000000 |
|  Total Securities Lending Reinvestments | 7000000 | 86929354 |  | 93929354 |
|  Total Investments | $1153631262 | $86929354 | $— | $1240560616 |
|  Collateral for Securities Loaned (Liability) | $— | $(93910101) | $— | $(93910101) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** | **Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1228079242 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated investments at value (c) | 12481374 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 750000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 3372039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 87901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 468734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends on affiliated investments | 41081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 4241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1245284612 |
|  **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 93910101 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 5071435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 533637 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 446121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 65859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 162635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 100342339 |
|  **Net Assets** | $1144942273 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: | &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $986687342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 158254931 |
|  **Net Assets** | $1144942273 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $837243712 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 294139343 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 11234822 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 2324396 |
|  **Capital Shares Outstanding\*** | **Capital Shares Outstanding\*** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 49919314 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 20280343 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 734567 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 172913 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $16.77 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 14.50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 15.29 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class G | 13.44 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Includes securities loaned at value of $92,469,163.

(b) Identified cost of investments, excluding affiliated investments, was $1,098,560,990.

(c) Identified cost of affiliated investments was $12,481,374.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $7422214 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 213459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 325674 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 7961347 |
|  **Expenses** | **Expenses** |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 5922075 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 59834 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 90092 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 816665 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 19170 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class G | 8344 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 74857 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 11008 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 20300 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 7123352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (272563) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 6850789 |
|  **Net Investment Income** | 1110558 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
|  Net realized gain on investments | 28492225 |
|  Net change in unrealized depreciation on investments | (380886473) |
|  Net realized and unrealized gain (loss) | (352394248) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(351283690) |

---

(a) Net of foreign withholding taxes of $23,549.

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $1110558 | $(1783881) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 28492225 | 242884721 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (380886473) | (60112312) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (351283690) | 180988528 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (171022527) | (121488248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (66915169) | (50320765) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (2467717) | (2064750) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class G | (608513) | (494041) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (241013926) | (174367804) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | 139260329 | (47060376) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (453037287) | (40439652) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1597979560 | 1638419212 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $1144942273 | $1597979560 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1159910 | $24725896 | 613177 | $16741884 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 10803697 | 171022527 | 4764245 | 121488248 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (4704546) | (86774666) | (6150404) | (169371718) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 7259061 | $108973757 | (772982) | $(31141586) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 469023 | $8199606 | 974894 | $24281515 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 4880756 | 66915169 | 2209959 | 50320765 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2665685) | (44533888) | (3627973) | (89340798) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 2684094 | $30580887 | (443120) | $(14738518) |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 14846 | $263506 | 32595 | $832609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 170776 | 2467717 | 87120 | 2064750 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (155646) | (2933087) | (150700) | (3830130) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 29976 | $(201864) | (30985) | $(932771) |
|  **Class G** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 4589 | $79792 | 8060 | $196083 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 47877 | 608513 | 22979 | 494041 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (48856) | (780756) | (40343) | (937625) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 3610 | $(92451) | (9304) | $(247501) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $139260329 |  | $(47060376) |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $27.02 | $27.04 | $24.43 | $21.23 | $24.69 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.03 | (0.01) | 0.03 | 0.05 | 0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (6.25) | 2.99 | 5.09 | 6.61 | (1.34) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (6.22) | 2.98 | 5.12 | 6.66 | (1.30) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.05) | (0.01) | (0.05) | (0.01) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.98) | (2.99) | (2.46) | (3.45) | (2.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (4.03) | (3.00) | (2.51) | (3.46) | (2.16) |
|  **Net Asset Value, End of Period** | $16.77 | $27.02 | $27.04 | $24.43 | $21.23 |
|  **Total Return (%)** (b) | (22.15) | 11.67 | 24.34 | 33.16 | (6.55) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.50 | 0.49 | 0.50 | 0.50 | 0.50 |
|  Net ratio of expenses to average net assets (%) (c) | 0.48 | 0.47 | 0.48 | 0.48 | 0.48 |
|  Ratio of net investment income (loss) to average net assets (%) | 0.16 | (0.04) | 0.13 | 0.23 | 0.15 |
|  Portfolio turnover rate (%) | 34 | 28 | 36 | 17 | 21 |
|  Net assets, end of period (in millions) | $837.2 | $1152.5 | $1174.3 | $985.3 | $834.3 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $24.09 | $24.47 | $22.36 | $19.71 | $23.09 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.02) | (0.07) | (0.02) | (0.00)(d) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.59) | 2.68 | 4.59 | 6.10 | (1.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.61) | 2.61 | 4.57 | 6.10 | (1.25) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.98) | (2.99) | (2.46) | (3.45) | (2.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.98) | (2.99) | (2.46) | (3.45) | (2.13) |
|  **Net Asset Value, End of Period** | $14.50 | $24.09 | $24.47 | $22.36 | $19.71 |
|  **Total Return (%)** (b) | (22.34) | 11.36 | 24.04 | 32.84 | (6.78) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.75 | 0.74 | 0.75 | 0.75 | 0.75 |
|  Net ratio of expenses to average net assets (%) (c) | 0.73 | 0.72 | 0.73 | 0.73 | 0.73 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.10) | (0.29) | (0.11) | (0.02) | (0.10) |
|  Portfolio turnover rate (%) | 34 | 28 | 36 | 17 | 21 |
|  Net assets, end of period (in millions) | $294.1 | $423.9 | $441.3 | $408.4 | $352.3 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $25.09 | $25.34 | $23.05 | $20.22 | $23.61 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.00)(d) | (0.05) | (0.00)(d) | 0.02 | (0.00)(d) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.82) | 2.79 | 4.76 | 6.26 | (1.26) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.82) | 2.74 | 4.76 | 6.28 | (1.26) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | 0.00 | 0.00 | (0.01) | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.98) | (2.99) | (2.46) | (3.45) | (2.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.98) | (2.99) | (2.47) | (3.45) | (2.13) |
|  **Net Asset Value, End of Period** | $15.29 | $25.09 | $25.34 | $23.05 | $20.22 |
|  **Total Return (%)** (b) | (22.28) | 11.49 | 24.20 | 32.90 | (6.67) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.65 | 0.64 | 0.65 | 0.65 | 0.65 |
|  Net ratio of expenses to average net assets (%) (c) | 0.63 | 0.62 | 0.63 | 0.63 | 0.63 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.00)(e) | (0.19) | (0.01) | 0.08 | (0.00)(e) |
|  Portfolio turnover rate (%) | 34 | 28 | 36 | 17 | 21 |
|  Net assets, end of period (in millions) | $11.2 | $17.7 | $18.6 | $16.9 | $14.0 |
|  | **Class G** | **Class G** | **Class G** | **Class G** | **Class G** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $22.74 | $23.26 | $21.39 | $18.99 | $22.33 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | (0.02) | (0.08) | (0.03) | (0.01) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5.30) | 2.55 | 4.36 | 5.86 | (1.18) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (5.32) | 2.47 | 4.33 | 5.85 | (1.21) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net realized capital gains | (3.98) | (2.99) | (2.46) | (3.45) | (2.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (3.98) | (2.99) | (2.46) | (3.45) | (2.13) |
|  **Net Asset Value, End of Period** | $13.44 | $22.74 | $23.26 | $21.39 | $18.99 |
|  **Total Return (%)** (b) | (22.40) | 11.34 | 24.00 | 32.75 | (6.84) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.80 | 0.79 | 0.80 | 0.80 | 0.80 |
|  Net ratio of expenses to average net assets (%) (c) | 0.78 | 0.77 | 0.78 | 0.78 | 0.78 |
|  Ratio of net investment income (loss) to average net assets (%) | (0.15) | (0.34) | (0.17) | (0.07) | (0.15) |
|  Portfolio turnover rate (%) | 34 | 28 | 36 | 17 | 21 |
|  Net assets, end of period (in millions) | $2.3 | $3.8 | $4.2 | $4.5 | $3.5 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners
may bear under their variable contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

(d) Net investment income (loss) was less than $0.01.

(e) Ratio of net investment income (loss) to average net assets was less than 0.01%.

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is T. Rowe Price Small Cap Growth Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers four classes of shares: Class A, B, E and G shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $20,910,101, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**3. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $434071702 | $0 | $530496256 |

---

**5. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

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| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net<br>Assets** |
| $5922075 | 0.550% | Of the first $100 million |
|  | 0.500% | Of the next $300 million |
|  | 0.450% | On amounts in excess of $400 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. T. Rowe Price Associates, Inc. ("T. Rowe Price") is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waivers -** T. Rowe Price agreed to a voluntary subadvisory fee waiver that applies if (i) assets under management by T. Rowe Price for the Trust and Brighthouse Funds Trust I ("BHFTI"), an affiliate of the Trust, in the aggregate, exceed $750 million (ii) T. Rowe Price subadvises three or more portfolios of the Trust and BHFTI in the aggregate, and (iii) at least one of those portfolios is a large cap domestic equity portfolio.

If the aforementioned conditions are met, T. Rowe Price will waive its subadvisory fee paid by Brighthouse Investment Advisers by 5% for combined Trust and BHFTI average daily net assets over $750 million, 7.5% for the next $1.5 billion of combined assets, and 10% for amounts over $3 billion. Brighthouse Investment Advisers has voluntarily agreed to reduce its advisory fee for the Portfolio by the amount waived (if any) by T. Rowe Price for the Portfolio pursuant to this voluntary subadvisory fee waiver. Because these fee waivers are voluntary, and not contractual, they may be discontinued by T. Rowe Price and Brighthouse Investment Advisers at any time. Amounts waived for the year ended December 31, 2022 are shown as management fee waivers in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Transactions in Securities of Affiliated Issuers** 

A summary of the Portfolio's transactions in the securities of affiliated issuers during the year ended December 31, 2022 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security Description** | **Market Value<br>December 31, 2021** | **Purchases** | **Sales** | **Ending Value as of<br>December 31, 2022** | **Income earned from<br>affiliates during the period** | **Number of shares held<br>December 31, 2022** |
| T. Rowe Price Government Reserve Fund | $11194426 | $188664417 | $(187377469) | $12481374 | $213459 | 12481374 |

---

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1111951758 |
|  Gross unrealized appreciation | 247182642 |
|  Gross unrealized (depreciation) | (118573784) |
|  Net unrealized appreciation (depreciation) | $128608858 |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $8966857 | $15436403 | $232047069 | $158931401 | $241013926 | $174367804 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital<br>Losses** | **Total** |
| $658268 | $29140357 | $128608858 | $– $| 158407483 |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had no accumulated capital losses.

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**9. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the T. Rowe Price Small Cap Growth Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the T. Rowe Price Small Cap Growth Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the T. Rowe Price Small Cap Growth Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*T. Rowe Price Small Cap Growth Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and T. Rowe Price Associates, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and the average of its Morningstar Category for the one- and three-year periods ended June 30, 2022 and underperformed the median of its Performance Universe and the average of its Morningstar Category for the five-year period ended June 30, 2022. The Board also considered that the Portfolio outperformed its benchmark, the MSCI U.S. Small Cap Growth Index, for the one-year period ended October 31, 2022 and underperformed its benchmark for the three- and five-year periods ended October 31, 2022. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**T. Rowe Price Small Cap Growth Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Managed By Van Eck Associates Corporation** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A and B shares of the VanEck Global Natural Resources Portfolio returned 8.24% and 7.98%, respectively. The Portfolio's benchmark, the S&P North American Natural Resources Sector Index¹, returned 34.07%.

**MARKET ENVIRONMENT / CONDITIONS** 

Broadly speaking, and on average, resource equities outperformed global equities and global bonds for a second year in a row in 2022. Notable macroeconomic drivers on the year included supply disruptions (following Russia's invasion of Ukraine), ongoing inflationary pressures, and exceptionally fast, synchronized global tightening.

Traditional energy (i.e., oil & gas) companies dominated positive performance within the space, aided by resilient underlying commodity prices. Meanwhile renewable & alternative energy companies suffered from a number of headwinds including rising interest rates and a souring market environment for more growth-oriented stocks.

Europe's scramble to secure its energy supply following Russia's invasion of Ukraine—and the European Union's subsequent ban on all seaborne imports of crude from Russia—placed even further constraints on oil and gas inventories that had already begun to experience tightness beginning in 2021. The United States' Strategic Petroleum Reserve reached near 40-year lows in 2022 as it became an indispensable, though temporary and unsustainable, source of supply for oil markets around the globe.

While supply constraints buoyed energy prices, capital spending discipline remained a noted characteristic among oil & gas producers throughout the year. Declining expenditures and rising free cash flow sparked a wave of dividends, variable dividends and share repurchases, enabling the energy sector to become, on average, one of the highest yielding global equity sectors on the year.

Base & industrial metals price gains were mixed on the year. However, established, diversified mining companies were still capable of boosting yields and dividends and escaped relatively unscathed. Unfortunately, smaller, more targeted mining companies—particularly those focused on mining metals and minerals supporting battery and clean energy technology manufacturing—remained vulnerable to rising startup project costs and a general trepidation for growth-oriented stocks.

Despite a strong dollar rally throughout most of 2022, gold finished nearly flat on the year and managed to remain a store of value when compared with most other asset classes. On the other hand, miners were hit by stifling industry cost inflation and a lack of upward momentum in gold prices.

Early in the year, Russia's invasion of Ukraine prompted a temporary crisis in grain supply. However, markets reacted swiftly to address the situation diplomatically and record harvests across a number of major producing countries eventually alleviated concerns. Perhaps more notable though was the impact that higher natural gas prices had on the production of nitrogen-based fertilizers (where natural gas represents a significant input cost). Record natural gas prices stalled fertilizer production in Europe for a short period of time before unsustainably high fertilizer prices prompted demand destruction.

Mid-year gains in renewables & alternative energy companies stemming from pro-clean energy policy measures enacted in both the United States and Europe were insufficient at offsetting a number of headwinds experienced throughout the course of the year. Rotation from growth- to value-oriented stocks, along with sanctions on imported solar goods into the United States (from Asia), fueled negative sentiment in the space.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

Structural underweight positioning in traditional energy negatively impacted relative performance of the Portfolio for the period. The benchmark's extremely concentrated approach—highlighted by, on average, an approximate 80% weighting to North American oil & gas in 2022—overshadowed modest relative performance among several other of the Portfolio's resource equity allocations on the year.

On an absolute basis, the largest detractors included energy storage systems provider, Stem, Inc., gold miner, Newmont Corporation, and renewable energy project financier, Hannon Armstrong Sustainable Infrastructure Capital. Both Stem and Hannon Armstrong suffered from macroeconomic and industry-specific headwinds—including fatigue with growth equities, rising interest rates and a moderated global growth outlook. Because of increasing costs, Newmont also missed its guidance targets and was penalized by the market.

The largest contributors included oil & gas refiner, Valero Energy Corporation, and oil & gas exploration and production companies Devon Energy Corporation and ConocoPhillips Company. While all three companies benefited from general strength in underlying commodity markets, Valero, in particular, benefitted from strong European demand for its for diesel, jet fuel and other middle distillates. Additionally, Devon Energy continued to be rewarded as a model for capital discipline and return of shareholder capital in the space.

Notable new positions taken in the Portfolio included diversified metals and mining company, Glencore, and oil & gas producer, Chesapeake Energy Corporation. Other notable changes in the Portfolio during the period included its exit from the position it held in oil & gas exploration and production company Coterra Energy, Inc. and the reduction in its position in oil & gas exploration and production company Pioneer Natural Resources Company.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Managed By Van Eck Associates Corporation** 

**Portfolio Manager Commentary\*—(Continued)** 

At the end of the period, the Portfolio's largest allocations were to oil & gas (approximately 40%) and base & industrial metals (approximately 18%). Agriculture, renewable & alternative energy and gold & precious metals made up nearly the entirety of the Portfolio's remaining exposure at approximately 14%, 11% and 10.5%, respectively.

**Shawn Reynolds** 

**Charles Cameron** 

Portfolio Managers

*Van Eck Associates Corporation* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup>The S&P North American Natural Resources Sector Index was developed as an equity benchmark for U.S. traded natural resource related stocks.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE S&P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX**![LOGO](g400324g73e55.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**VanEck Global Natural Resources Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | 8.24 | 4.67 | 0.93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | 7.98 | 4.39 | 0.67 |
| &nbsp;&nbsp;&nbsp;**S&P North American Natural Resources Sector Index** | 34.07 | 7.13 | 4.05 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Holdings** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Glencore plc** | **4.2** |
| **Valero Energy Corp.** | **3.9** |
| **SolarEdge Technologies, Inc.** | **3.7** |
| **Equinor ASA(ADR)** | **3.5** |
| **First Quantum Minerals, Ltd.** | **2.9** |
| **Vale S.A.(ADR)** | **2.9** |
| **Hess Corp.** | **2.8** |
| **Anglo American plc** | **2.8** |
| **Bunge, Ltd.** | **2.8** |
| **ConocoPhillips** | **2.6** |

---

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Energy** | **39.7** |
| **Materials** | **37.2** |
| **Information Technology** | **6.0** |
| **Industrials** | **5.7** |
| **Consumer Staples** | **5.1** |
| **Utilities** | **1.6** |
| **Financials** | **0.4** |
| **Consumer Discretionary** | **0.3** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **VanEck Global Natural Resources Portfolio** <br>|  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,<br>2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.76% | $1000.00 | $1091.00 | $4.01 |
|  | Hypothetical\* | 0.76% | $1000.00 | $1021.37 | $3.87 |
|  Class B (a) | Actual | 1.01% | $1000.00 | $1088.90 | $5.32 |
|  | Hypothetical\* | 1.01% | $1000.00 | $1020.11 | $5.14 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Common Stocks—95.9% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Auto Components—0.0%** | **Auto Components—0.0%** | **Auto Components—0.0%** |
|  Solid Power, Inc. (a) (b) | 81300 | $206502 |
| **Chemicals—8.8%** | **Chemicals—8.8%** | **Chemicals—8.8%** |
|  Corteva, Inc. | 342033 | 20104700 |
|  FMC Corp. | 68746 | 8579501 |
|  Mosaic Co. (The) | 179200 | 7861504 |
|  Nutrien, Ltd. (b) | 229423 | 16754761 |
|  OCI NV | 429657 | 15332104 |
|  Yara International ASA | 90800 | 3992293 |
|  |  | 72624863 |
| **Electrical Equipment—2.3%** | **Electrical Equipment—2.3%** | **Electrical Equipment—2.3%** |
|  ESS Tech, Inc. (a) (b) | 180800 | 439344 |
|  Fluence Energy, Inc. (a) (b) | 32740 | 561491 |
|  FREYR Battery S.A. (a) (b) | 889150 | 7717822 |
|  Soltec Power Holdings S.A. (a) (b) | 112789 | 497517 |
|  Stem, Inc. (a) (b) | 1112732 | 9947824 |
|  |  | 19163998 |
| **Energy Equipment & Services—6.6%** | **Energy Equipment & Services—6.6%** | **Energy Equipment & Services—6.6%** |
|  Baker Hughes Co. (b) | 419600 | 12390788 |
|  ChampionX Corp. (b) | 313800 | 9097062 |
|  Halliburton Co. | 407800 | 16046930 |
|  Liberty Oilfield Services, Inc. (b) | 1022010 | 16362380 |
|  |  | 53897160 |
| **Food Products—5.1%** | **Food Products—5.1%** | **Food Products—5.1%** |
|  Benson Hill, Inc. (a) (b) | 466000 | 1188300 |
|  Bunge, Ltd. | 233100 | 23256387 |
|  Darling Ingredients, Inc. (a) | 109600 | 6859864 |
|  Tyson Foods, Inc. - Class A | 173500 | 10800375 |
|  |  | 42104926 |
| **Independent Power and Renewable Electricity Producers—1.6%** | **Independent Power and Renewable Electricity Producers—1.6%** | **Independent Power and Renewable Electricity Producers—1.6%** |
|  Ormat Technologies, Inc. (b) | 151300 | 13084424 |
| **Machinery—1.4%** | **Machinery—1.4%** | **Machinery—1.4%** |
|  Chart Industries, Inc. (a) (b) | 96120 | 11075908 |
| **Marine—1.3%** | **Marine—1.3%** | **Marine—1.3%** |
|  Kirby Corp. (a) | 167131 | 10754880 |
| **Metals & Mining—28.3%** | **Metals & Mining—28.3%** | **Metals & Mining—28.3%** |
|  5E Advanced Materials, Inc. (a) (b) | 130800 | 1030704 |
|  Agnico Eagle Mines, Ltd. (U.S. Listed Shares) (b) | 245233 | 12749664 |
|  Alamos Gold, Inc. - Class A | 659700 | 6669567 |
|  Allkem Ltd. (a) | 845047 | 6419697 |
|  Anglo American plc | 596400 | 23326805 |
|  Barrick Gold Corp. | 664235 | 11411557 |
|  Ecograf, Ltd. (a) | 1359349 | 197514 |
|  Eldorado Gold Corp. (a) (b) | 481900 | 4028684 |
|  Endeavour Mining plc (b) | 421200 | 9015049 |
|  Euro Manganese, Inc. (a) | 1958685 | 473407 |
|  First Quantum Minerals, Ltd. (b) | 1136800 | 23751899 |
|  Franco-Nevada Corp. | 90200 | 12310496 |
| **Metals & Mining—(Continued)** | **Metals & Mining—(Continued)** | **Metals & Mining—(Continued)** |
|  Freeport-McMoRan, Inc. (b) | 518100 | 19687800 |
|  Glencore plc | 5177600 | 34621443 |
|  Jervois Global, Ltd. (a) | 4986900 | 933057 |
|  Kinross Gold Corp. (b) | 2055900 | 8408631 |
|  MP Materials Corp. (a) (b) | 238585 | 5792844 |
|  Newmont Corp. | 183717 | 8671442 |
|  Nouveau Monde Graphite, Inc. (a) | 167633 | 640358 |
|  Piedmont Lithium, Inc. (a) (b) | 133008 | 5855012 |
|  Sibanye Stillwater, Ltd. (ADR) (b) | 1135100 | 12100166 |
|  Talon Metals Corp. (a) | 3689300 | 1348747 |
|  Vale S.A. (ADR) (b) | 1381600 | 23445752 |
|  |  | 232890295 |
| **Mortgage Real Estate Investment Trusts—0.4%** | **Mortgage Real Estate Investment Trusts—0.4%** | **Mortgage Real Estate Investment Trusts—0.4%** |
|  Hannon Armstrong Sustainable Infrastructure Capital, Inc. (b) | 126439 | 3664202 |
| **Oil, Gas & Consumable Fuels—33.2%** |  |  |
|  Chesapeake Energy Corp. (b) | 199000 | 18779630 |
|  Chevron Corp. | 50500 | 9064245 |
|  ConocoPhillips | 180922 | 21348796 |
|  Devon Energy Corp. (b) | 323582 | 19903529 |
|  Diamondback Energy, Inc. | 152006 | 20791381 |
|  Eni S.p.A. (b) | 687600 | 9821844 |
|  EQT Corp. (b) | 577500 | 19536825 |
|  Equinor ASA (ADR) (b) | 802100 | 28723201 |
|  Excelerate Energy, Inc. - Class A (b) | 198200 | 4964910 |
|  Hess Corp. | 164600 | 23343572 |
|  Marathon Oil Corp. | 348200 | 9425774 |
|  Neste Oyj | 107500 | 4965211 |
|  PDC Energy, Inc. (b) | 131300 | 8334924 |
|  Pioneer Natural Resources Co. | 76687 | 17514544 |
|  Repsol S.A. | 664900 | 10599373 |
|  Saras S.p.A. (a) | 3635900 | 4482358 |
|  Shell plc (ADR) (b) | 154700 | 8810165 |
|  Valero Energy Corp. (b) | 253900 | 32209754 |
|  |  | 272620036 |
| **Road & Rail—0.6%** | **Road & Rail—0.6%** | **Road & Rail—0.6%** |
|  Union Pacific Corp. | 23100 | 4783317 |
| **Semiconductors & Semiconductor Equipment—6.0%** | **Semiconductors & Semiconductor Equipment—6.0%** | **Semiconductors & Semiconductor Equipment—6.0%** |
|  Enphase Energy, Inc. (a) | 72200 | 19130112 |
|  SolarEdge Technologies, Inc. (a) | 106600 | 30196582 |
|  |  | 49326694 |
| **Specialty Retail—0.3%** | **Specialty Retail—0.3%** | **Specialty Retail—0.3%** |
|  EVgo, Inc. (a) (b) | 530200 | 2369994 |
|  Total Common Stocks <br>(Cost $628,312,432) |  | 788567199 |
| **Warrants—0.1%** |  |  |
| **Electrical Equipment—0.1%** |  |  |
|  FREYR Battery S.A. Expires 09/01/27 (a) | 251000 | 710330 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Warrants—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Shares/<br>Principal<br>Amount\*** | **Value** | **Value** |
| **Food Products—0.0%** | | | |
|  Benson Hill, Inc. Expires 12/24/25 (a) | 125625 | $| 31419 |
|  Total Warrants <br>(Cost $381,941) |  |  | 741749 |
| **Short-Term Investment—3.8%** |  |  |  |
| **Mutual Funds—3.8%** |  |  |  |
|  Invesco STIC Prime Portfolio, Institutional Class, 4.240% (c) | 31126079 |  | 31126079 |
|  Total Short-Term Investments <br>(Cost $31,126,098) |  |  | 31126079 |
| **Securities Lending Reinvestments (d)—19.3%** | **Securities Lending Reinvestments (d)—19.3%** | **Securities Lending Reinvestments (d)—19.3%** | **Securities Lending Reinvestments (d)—19.3%** |
| **Certificates of Deposit—9.4%** |  |  |  |
|  Bank of Montreal<br>5.090%, SOFR + 0.790%, 11/08/23 (e) | 2000000 |  | 2002702 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (e) | 3000000 |  | 3000000 |
|  Bank of Nova Scotia<br>4.810%, SOFR + 0.510%, 03/15/23 (e) | 5000000 |  | 5002101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (e) | 2000000 |  | 2002338 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (e) | 5000000 |  | 5001740 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.800%, SOFR + 0.500%, 03/03/23 (e) | 7000000 |  | 7002679 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (e) | 6000000 |  | 6000426 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (e) | 4000000 |  | 4001200 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23 (e) | 2000000 |  | 2000601 |
|  MUFG Bank Ltd. (NY)<br>4.810%, SOFR + 0.510%, 02/17/23 (e) | 4000000 |  | 4001016 |
|  Nordea Bank Abp (NY)<br>4.760%, SOFR + 0.460%, 02/13/23 (e) | 2000000 |  | 2000342 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 02/27/23 (e) | 4000000 |  | 4001108 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/21/23 (e) | 2000000 |  | 2000670 |
|  Rabobank (London)<br>4.830%, SOFR + 0.530%, 05/16/23 (e) | 3000000 |  | 3000000 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (e) | 5000000 |  | 4999920 |
|  Standard Chartered Bank (NY)<br>5.040%, SOFR + 0.740%, 05/02/23 (e) | 3000000 |  | 3004553 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (e) | 3000000 |  | 3000330 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>4.750%, SOFR + 0.450%, 02/24/23 (e) | 4000000 |  | 4001312 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (e) | 3000000 |  | 3000834 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (e) | 4000000 |  | 3999825 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (e) | 4000000 |  | 3999560 |
|  |  |  | 77023257 |
| **Commercial Paper—1.2%** |  |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (e) | 3000000 |  | 3004086 |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (e) | 3000000 |  | 3000810 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (e) | 1000000 |  | 1000988 |
|  United Overseas Bank, Ltd.<br>4.850%, SOFR + 0.550%, 02/03/23 (e) | 3000000 |  | 3000723 |
|  |  |  | 10006607 |
| **Repurchase Agreements—6.4%** |  |  |  |
|  Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $5,022,458; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $5,100,000. | 5000000 |  | 5000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $5,125,132; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $5,100,001. | 5000000 |  | 5000000 |
|  Goldman Sachs & Co. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $22,155,362; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 7.625%, maturity dates ranging from 01/24/23 - 11/15/52, and an aggregate market value of $22,587,803. | 22144904 |  | 22144904 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $15,012,979; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $16,332,428. | 15000000 |  | 15000000 |
|  Societe Generale <br>Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $4,503,868; collateralized by various Common Stock with an aggregate market value of $5,009,364. | 4500000 |  | 4500000 |
|  TD Prime Services LLC <br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $866,932; collateralized by various Common Stock with an aggregate market value of $961,328. | 866508 |  | 866508 |
|  |  |  | 52511412 |
| **Time Deposits—1.2%** |  |  |  |
|  Australia & New Zealand Banking Group, Ltd.<br>4.300%, 01/03/23 | 5000000 |  | 5000000 |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (e) | 4500000 |  | 4500000 |
|  |  |  | 9500000 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (d)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Mutual Funds—1.1%** | | |
|  AB Government Money Market Portfolio, Institutional Class<br>4.110% (c) | 4000000 | $4000000 |
|  Western Asset Institutional Government Reserves Fund, Institutional Class 4.220% (c) | 5000000 | 5000000 |
|  |  | 9000000 |
|  Total Securities Lending Reinvestments <br>(Cost $158,011,412) |  | 158041276 |
|  Total Investments—119.1% <br>(Cost $817,831,883) |  | 978476303 |
|  Other assets and liabilities (net)—(19.1)% |  | (156620234) |
| **Net Assets—100.0%** |  | $821856069 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) Non-income producing security.

(b) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $170,794,652 and the collateral received consisted of cash in the amount of $158,011,412 and non-cash collateral with a value of $17,572,303. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(c) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(d) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(e) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

**Glossary of Abbreviations** 

Index Abbreviations

------

---

| | |
|:---|:---|
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (SOFR)— | Secured Overnight Financing Rate |
| (OBFR)— | U.S. Overnight Bank Funding Rate |

---

Other Abbreviations

------

(ADR)— American Depositary Receipt

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | $206502 | $— | $— | $206502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals | 53300466 | 19324397 |  | 72624863 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electrical Equipment | 18666481 | 497517 |  | 19163998 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy Equipment & Services | 53897160 |  |  | 53897160 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food Products | 42104926 |  |  | 42104926 |
| &nbsp;&nbsp;&nbsp;&nbsp; Independent Power and Renewable Electricity Producers | 13084424 |  |  | 13084424 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery | 11075908 |  |  | 11075908 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marine | 10754880 |  |  | 10754880 |
| &nbsp;&nbsp;&nbsp;&nbsp; Metals & Mining | 166918372 | 65971923 |  | 232890295 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Real Estate Investment Trusts | 3664202 |  |  | 3664202 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 242751250 | 29868786 |  | 272620036 |
| &nbsp;&nbsp;&nbsp;&nbsp; Road & Rail | 4783317 |  |  | 4783317 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors & Semiconductor Equipment | 49326694 |  |  | 49326694 |
| &nbsp;&nbsp;&nbsp;&nbsp; Specialty Retail | 2369994 |  |  | 2369994 |
|  Total Common Stocks | 672904576 | 115662623 |  | 788567199 |
|  Total Warrants\* | 741749 |  |  | 741749 |
|  Total Short-Term Investment\* | 31126079 |  |  | 31126079 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Certificates of Deposit |  | 77023257 |  | 77023257 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Paper |  | 10006607 |  | 10006607 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 52511412 |  | 52511412 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposits |  | 9500000 |  | 9500000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 9000000 |  |  | 9000000 |
|  Total Securities Lending Reinvestments | 9000000 | 149041276 |  | 158041276 |
|  Total Investments | $713772404 | $264703899 | $— | $978476303 |
|  Collateral for Securities Loaned (Liability) | $— | $(158011412) | $— | $(158011412) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $978476303 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 410423 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (c) | 1321256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: | &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends | 685825 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 3717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 980898165 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 158011412 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: | &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 179304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 44342 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: | &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 515787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 17614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 151352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 122285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 159042096 |
|  **Net Assets** | $821856069 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $673747691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | 148108378 |
|  **Net Assets** | $821856069 |
|  **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $741482446 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 80373623 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 58351289 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 6372441 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** | **Net Asset Value, Offering Price and Redemption Price Per Share** |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $12.71 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 12.61 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $817,831,883.

(b) Includes securities loaned at value of $170,794,652.

(c) Identified cost of cash denominated in foreign currencies was $1,323,675.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends (a) | $32671148 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 1016848 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 33687996 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 7534061 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 49722 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 93373 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 231391 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 46352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 31902 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 8428 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 16422 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 8066306 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (599085) |
| &nbsp;&nbsp;&nbsp;&nbsp; Less broker commission recapture | (22646) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 7444575 |
|  **Net Investment Income** | 26243421 |
|  **Net Realized and Unrealized Gain (Loss)** | **Net Realized and Unrealized Gain (Loss)** |
| Net realized gain (loss) on: | Net realized gain (loss) on: |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | 259977673 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (293450) |
|  Net realized gain (loss) | 259684223 |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (172515709) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (2459) |
|  Net change in unrealized appreciation (depreciation) | (172518168) |
|  Net realized and unrealized gain (loss) | 87166055 |
|  **Net Increase (Decrease) in Net Assets From Operations** | $113409476 |

---

(a) Net of foreign withholding taxes of $1,250,590.

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
|  **From Operations** | **From Operations** | **From Operations** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $26243421 | $22982565 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 259684223 | 207208929 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (172518168) | (18871371) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | 113409476 | 211320123 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** | &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (23035876) | (12696851) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (2217944) | (1035249) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (25253820) | (13732100) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (378938677) | (309878845) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (290783021) | (112290822) |
|  **Net Assets** | **Net Assets** | **Net Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1112639090 | 1224929912 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $821856069 | $1112639090 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 4082759 | $51049554 | 1998858 | $22887786 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 1765201 | 23035876 | 1058071 | 12696851 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (31319887) | (425200626) | (27649540) | (317819147) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (25471927) | $(351115196) | (24592611) | $(282234510) |
|  **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 819909 | $10172694 | 673325 | $7598157 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 171006 | 2217944 | 86777 | 1035249 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2991889) | (40214119) | (3116189) | (36277741) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (2000974) | $(27823481) | (2356087) | $(27644335) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(378938677) |  | $(309878845) |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $12.08 | $10.29 | $8.59 | $7.69 | $10.78 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.36 | 0.24 | 0.10 | 0.12 | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | 0.65 | 1.70 | 1.70 | 0.83 | (3.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | 1.01 | 1.94 | 1.80 | 0.95 | (3.07) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.38) | (0.15) | (0.10) | (0.05) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.38) | (0.15) | (0.10) | (0.05) | (0.02) |
|  **Net Asset Value, End of Period** | $12.71 | $12.08 | $10.29 | $8.59 | $7.69 |
|  **Total Return (%)** (b) | 8.24 | 18.82 | 21.58 | 12.44 (c) | (28.64) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
|  Net ratio of expenses to average net assets (%) (d) | 0.75 | 0.74 | 0.75 | 0.77 | 0.80 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.74 | 2.01 | 1.34 | 1.46 | 0.62 |
|  Portfolio turnover rate (%) | 40 | 23 | 48 | 33 | 24 |
|  Net assets, end of period (in millions) | $741.5 | $1012.3 | $1115.4 | $1084.7 | $837.8 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.98 | $10.21 | $8.53 | $7.62 | $10.71 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.32 | 0.20 | 0.08 | 0.10 | 0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | 0.65 | 1.69 | 1.68 | 0.84 | (3.13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | 0.97 | 1.89 | 1.76 | 0.94 | (3.09) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.34) | (0.12) | (0.08) | (0.03) | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.34) | (0.12) | (0.08) | (0.03) | 0.00 |
|  **Net Asset Value, End of Period** | $12.61 | $11.98 | $10.21 | $8.53 | $7.62 |
|  **Total Return (%)** (b) | 7.98 | 18.51 | 21.18 | 12.35 | (28.85) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 |
|  Net ratio of expenses to average net assets (%) (d) | 1.00 | 0.99 | 1.00 | 1.02 | 1.05 |
|  Ratio of net investment income (loss) to average net assets (%) | 2.50 | 1.76 | 1.09 | 1.20 | 0.36 |
|  Portfolio turnover rate (%) | 40 | 23 | 48 | 33 | 24 |
|  Net assets, end of period (in millions) | $80.4 | $100.3 | $109.6 | $105.5 | $90.3 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Generally accepted accounting principles may require adjustments to be made to the net assets of the Portfolio at period end for financial reporting purposes, and as such, the net asset values for shareholder
transactions and the returns based on those net asset values may differ from the returns reported in the portfolio manager commentary section of this report.

(d) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is VanEck Global Natural Resources Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers two classes of shares: Class A and B shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon

**BHFTII-12** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**BHFTII-13** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $52,511,412, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

All securities on loan are classified as Common Stocks in the Portfolio's Schedule of Investments as of December 31, 2022. For all securities on loan, the remaining contractual maturity of the agreements is overnight and continuous.

**Directed Brokerage Agreement -** The Trust has entered into a directed brokerage arrangement with Capital Institutional Services, Inc. ("CAPIS"). Under this arrangement, the Portfolio directs certain trades to CAPIS in return for a recapture credit. CAPIS issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

**3. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local,

**BHFTII-14** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

**BHFTII-15** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

*Natural Resource and Foreign Investment Risk:* The Portfolio may concentrate its investments in companies which are significantly engaged in the exploration, development, production and distribution of gold and other natural resources such as strategic and other metals, minerals, forest products, oil, natural gas and coal and by investing in gold bullion and coins. Since the Portfolio may concentrate its investments, it may be subject to greater risks and market fluctuations than other more diversified portfolios. The production and marketing of gold and other natural resources may be affected by actions and changes in governments. In addition, gold and natural resources may be cyclical in nature. In addition, the investments by the Portfolio in foreign securities, whether direct or indirect, may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation, unexpected market closures or other political, social or economic developments, ,such as the imposition of economic sanctions against one or more countries, organizations, entities and/or individuals, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**4. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

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| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $0 | $377697028 | $0 | $772475294 |

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**5. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

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| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $7534061 | 0.800% | Of the first $250 million |
|  | 0.775% | Of the next $750 million |
|  | 0.750% | On amounts in excess of $1 billion |

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Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Van Eck Associates Corporation is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

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| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.050% | Of the first $500 million |
| 0.075% | On amounts over $500 million |

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An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The

**BHFTII-16** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**6. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**7. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

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| | |
|:---|:---|
|  Cost basis of investments | $827192521 |
|  Gross unrealized appreciation | 189308267 |
|  Gross unrealized (depreciation) | (38024485) |
|  Net unrealized appreciation (depreciation) | $151283782 |

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The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $25253820 | $13732100 | $— | $— | $25253820 | $13732100 |

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As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $24272385 | $– $| 151281366 | $(27293951) | $148259800 |

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The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

**BHFTII-17** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $2,552,494 and accumulated long-term capital losses of $24,741,457.

During the year ended December 31, 2022, the Portfolio utilized accumulated net capital losses of $257,718,513.

**8. Recent Accounting Pronouncement** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-18** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the VanEck Global Natural Resources Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the VanEck Global Natural Resources Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the VanEck Global Natural Resources Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-19** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

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**BHFTII-20** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

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**Officers** 

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-21** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-22** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-23** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*VanEck Global Natural Resources Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Van Eck Associates Corporation regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe for the one-year period ended June 30, 2022, outperformed the median of its Performance Universe for the three-year period ended June 30, 2022, and performed equal to the median of its Performance Universe for the five-year period ended June 30, 2022. The Board also considered that the Portfolio underperformed the average of its Morningstar Category for the one- and five-year periods ended June 30, 2022 and outperformed the average of its Morningstar Category for the three-year period ended June 30, 2022. The Board also considered that the Portfolio underperformed its benchmark, the S&P North American Natural Resources Sector Index, for the one- and five-year periods ended October 31, 2022 and outperformed its benchmark for the three-year period ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance,

**BHFTII-24** 

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**Brighthouse Funds Trust II** 

**VanEck Global Natural Resources Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were above the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio's contractual management fees were above the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-25** 

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**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Managed by Western Asset Management Company, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Western Asset Management Strategic Bond Opportunities Portfolio returned -16.66%, -16.93%, and -16.78%, respectively. The Portfolio's benchmark, the Bloomberg U.S. Aggregate Bond Index¹, returned -13.01%.

**MARKET ENVIRONMENT / CONDITIONS** 

During the 2022 calendar year and reporting period, bond yields soared and risk assets weakened as the Federal Reserve (the "Fed") and other central banks aggressively hiked interest rates to address rising global inflation pressures.

Geopolitical risks came to the forefront with Russia's invasion of Ukraine in February. The imposition of financial and economic sanctions, including the freezing of the Russian central bank's external reserve assets, pushed oil prices past $100 per barrel and renewed concerns over global growth as much of the world was still recovering from economic disruptions brought on by new COVID-19 variants in late 2021.

As the year progressed, inflation pressure in the U.S. continued to rise and far exceeded market and the Fed expectations. Price shocks were exacerbated by the invasion of Ukraine, which put additional pressure on food and energy prices, while the reinstatement of COVID-19 lockdowns in China worsened supply chain pressures. Headline consumer price index ("CPI") inflation peaked at 9.1% year-over-year ("YoY") in June and core CPI peaked at 6.6% in September. U.S. inflation moderated in the fourth quarter with headline and core CPI slowing to 6.5% and 5.7% YoY, respectively.

The Fed dramatically shifted course and continuously shifted their interest rate hike expectations higher throughout the year. After starting the year only anticipating the need to raise the Fed funds rate by 75 basis points ("bps") in 2022, the Fed instead raised rates by 425 bps in its fastest pace of rate hikes in a single year since the 1980s, to end 2022 at a target range of 4.25%-4.50%. Other developed market central banks also aggressively raised interest rates, including the European Central Bank, which exited the negative interest rate policy that it had in place since 2014.

In 2022, bonds had their worst year since the Great Depression as the Bloomberg U.S. Aggregate Bond Index dropped 13%, by far its worst year since its inception in 1971. The yield curve bear-flattened as short-term yields rose more than long-term yields, and most of the curve became inverted. Corporate credit, structured products and U.S. dollar-denominated emerging market bond spreads all widened. The U.S. dollar strengthened versus almost all currencies throughout the year, although it generally weakened during the fourth quarter of 2022.

**PORTFOLIO REVIEW / PERIOD END POSITIONING** 

For the 12-month period ended December 31, 2022, the Portfolio had a negative return and underperformed its benchmark.

One of the most significant contributors to the Portfolio's underperformance over the reporting period was its tactical credit exposure, including High-Yield ("HY") and Bank Loans as spreads widened over the year. The Portfolio's underweight to Investment Grade ("IG") Corporates had minimal impact as spreads widened but issue selection offset most of the positive effect from sector selection. Sector positioning changes were mainly focused in the HY space. For instance, the team trimmed its Bank Loan exposure (which had been at historical highs for the strategy) given the relative outperformance of the sector and the potential impact that rising rates might have on interest coverage across various names in the sector. The team deployed those proceeds into select HY corporate credit opportunities prevailing in the secondary markets (as primary markets had been relatively quiet). Security selection focused on high-yielding names that could potentially deliver double-digit returns and weather a slowdown in economic growth.

The Portfolio's macro positioning, including the effects of both duration and yield curve, was also significantly negative for performance as yields soared during the year. The team calibrated Portfolio duration positioning within a range of 5.5 years to 7 years—with most activity centered on the intermediate part of the U.S. Treasury ("UST") curve—to take advantage of UST volatility engendered by heightened market uncertainty around Fed policy and the U.S. economic outlook. For reference, 2-year UST yields rose from 0.73% to 4.41%, 10-year UST yields rose from 1.52% to 3.88% and 30-year UST yields rose from 1.90% to 3.97% over the year.

Currency positioning was a detractor as the U.S. dollar strengthened versus almost all currencies throughout the year, although it generally weakened during the fourth quarter of 2022. On the developed markets ("DM") foreign exchange ("FX") side, the team tactically calibrated its exposure in commodity complex currencies such as the Canadian dollar and Australian dollar as a way to express global growth sentiment, as well as in the euro and British pound given shifting market concerns over recession risks in those regions.

The Portfolio's underweight to Agency Mortgage-Backed Securities ("MBS") was beneficial as spreads widened during the period. Other structured product exposure had minimal impact as the negative impact of Asset-Backed Securities offset the positive impact of Non-Agency Residential Mortgage-Backed Securities ("RMBS") exposure. Rising mortgage rates have put downward pressure on housing affordability, resulting in a reduction of housing demand. In conjunction, housing supply continued to normalize through an ease in supply-chain issues and new home completions.

The Portfolio's exposure to emerging markets ("EM") debt and currency in aggregate had minimal impact as U.S. dollar-denominated bond spreads tightened, while most currencies strengthened versus the U.S. dollar over the year. The team reduced the Portfolio's EM exposure (both in rates and FX) given the hiking cycle across DM central banks, the sharp rise in the U.S. dollar, China's downside

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Managed by Western Asset Management Company, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

growth risks, the escalation of the Russia/Ukraine conflict and critical elections that were expected to take place in a number of EM countries. Varied 2022 macro shocks led to divergent performance and outlooks across EM regions and countries.

During the 12 months ended December 31, 2022, the team utilized derivatives including UST, Secured Overnight Financing Rate and Eurodollar futures and options, as well as interest rate swaps, to manage the Portfolio's duration and yield curve exposure. The team also used non-U.S. interest rate futures and swaps to manage the Portfolio's exposure to the German, Australian, U.K., Brazilian and Mexican bond markets. Credit default swaps ("CDX") on single names and on the CDX HY index were used as an efficient, low-cost way of adjusting credit exposures on the margin. The team also used MBS derivatives to gain exposure to specific characteristics of MBS. The team used FX forwards and options to hedge and take outright positions in a variety of currencies. Finally, the team used equity

options for tail risk hedging. The net impact of all derivative transactions on the Portfolio's performance was negative.

As of December 31, 2022, the Portfolio's duration was approximately 6.6 years, or approximately a half year long versus the Bloomberg U.S. Aggregate Bond Index (6.1 years). The Portfolio remained diversified across HY and Bank Loans, which continued to offer strong income and return generation potential, EM debt for attractive spread pick-up, mortgage credit with an emphasis on RMBS due to the better fundamental outlook for housing, Collateralized Loan Obligation tranches given their attractive valuations and IG corporate credit (mainly for carry and liquidity).

**S. Kenneth Leech** 

**Michael Buchanan** 

**Mark S. Lindbloom** 

**Annabel Rudebeck** 

Portfolio Managers

*Western Asset Management Company, LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG U.S. AGGREGATE BOND INDEX**![LOGO](g400082g14s78.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Western Asset Management Strategic Bond Opportunities Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -16.66 | 0.18 | 2.19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -16.93 | -0.07 | 1.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -16.78 | 0.04 | 2.05 |
| &nbsp;&nbsp;&nbsp;**Bloomberg U.S. Aggregate Bond Index** | -13.01 | 0.02 | 1.06 |

---

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

**Top Sectors** 

---

| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **Corporate Bonds & Notes** | **46.0** |
| **Floating Rate Loans** | **18.0** |
| **Mortgage-Backed Securities** | **9.1** |
| **Asset-Backed Securities** | **8.7** |
| **U.S. Treasury & Government Agencies** | **8.2** |
| **Foreign Government** | **3.1** |
| **Convertible Preferred Stocks** | **0.9** |
| **Convertible Bonds** | **0.6** |
| **Purchased Options** | **0.1** |
| **Common Stocks** | **0.1** |

---

**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Western Asset Management Strategic Bond Opportunities Portfolio** |  | **Annualized<br>Expense<br>Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,<br>2022** |
|  Class A (a) | Actual | 0.56% | $1000.00 | $981.70 | $2.80 |
|  | Hypothetical\* | 0.56% | $1000.00 | $1022.38 | $2.85 |
|  Class B (a) | Actual | 0.81% | $1000.00 | $980.60 | $4.04 |
|  | Hypothetical\* | 0.81% | $1000.00 | $1021.12 | $4.13 |
|  Class E (a) | Actual | 0.71% | $1000.00 | $981.60 | $3.55 |
|  | Hypothetical\* | 0.71% | $1000.00 | $1021.63 | $3.62 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—46.0% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Advertising—0.0%** | | |
|  Clear Channel Outdoor Holdings, Inc.<br>7.500%, 06/01/29 (144A) (a) | 1253000 | $920040 |
| **Aerospace/Defense—0.8%** |  |  |
|  Boeing Co. (The)<br>3.250%, 02/01/35 | 1740000 | 1323266 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.930%, 05/01/60 | 2630000 | 2395783 |
|  TransDigm, Inc.<br>6.250%, 03/15/26 (144A) (a) | 5930000 | 5848107 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 12/15/25 (144A) | 2440000 | 2476088 |
|  Triumph Group, Inc.<br>6.250%, 09/15/24 (144A) (a) | 1245000 | 1180198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.750%, 08/15/25 (a) | 5229000 | 4447735 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.875%, 06/01/24 (144A) (a) | 820000 | 834350 |
|  |  | 18505527 |
| **Agriculture—0.3%** |  |  |
|  Altria Group, Inc.<br>2.450%, 02/04/32 (a) | 530000 | 399829 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, 02/14/29 (a) | 115000 | 110346 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.950%, 02/14/49 | 829000 | 737172 |
|  Darling Ingredients, Inc.<br>6.000%, 06/15/30 (144A) (a) | 6370000 | 6226675 |
|  |  | 7474022 |
| **Airlines—1.7%** |  |  |
|  Air Canada<br>3.875%, 08/15/26 (144A) (a) | 3620000 | 3206352 |
|  Air Canada Pass-Through Trust<br>4.125%, 05/15/25 (144A) | 470870 | 430615 |
|  American Airlines Pass-Through Trust<br>4.950%, 02/15/25 | 2706375 | 2544827 |
|  American Airlines, Inc.<br>11.750%, 07/15/25 (144A) (a) | 3580000 | 3839905 |
|  American Airlines, Inc./AAdvantage Loyalty IP, Ltd.<br>5.500%, 04/20/26 (144A) (a) | 4800000 | 4615903 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 04/20/29 (144A) (a) | 3200000 | 2924659 |
|  Delta Air Lines, Inc.<br>7.000%, 05/01/25 (144A) (a) | 2760000 | 2820557 |
|  Hawaiian Brand Intellectual Property Ltd. / HawaiianMiles Loyalty, Ltd.<br>5.750%, 01/20/26 (144A) (a) | 10378000 | 9392090 |
|  Spirit Loyalty Cayman, Ltd. / Spirit IP Cayman, Ltd.<br>8.000%, 09/20/25 (144A) (a) | 5635999 | 5656018 |
|  United Airlines Pass-Through Trust<br>4.875%, 01/15/26 | 571500 | 543717 |
|  United Airlines, Inc.<br>4.625%, 04/15/29 (144A) (a) | 2590000 | 2255102 |
|  |  | 38229745 |
| **Auto Manufacturers—1.5%** |  |  |
|  Ford Motor Co.<br>3.250%, 02/12/32 (a) | 2340000 | 1754864 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.100%, 08/19/32 (a) | 6680000 | 6168028 |
|  Ford Motor Credit Co. LLC<br>3.625%, 06/17/31 (a) | 4560000 | 3582145 |
| **Auto Manufacturers—(Continued)** |  |  |
|  Ford Motor Credit Co. LLC |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/13/30 (a) | 5530000 | 4539245 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.950%, 05/28/27 (a) | 2170000 | 2024393 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.350%, 11/04/27 (a) | 2720000 | 2787184 |
|  General Motors Co.<br>6.600%, 04/01/36 (a) | 5134000 | 5028224 |
|  Mclaren Finance plc<br>7.500%, 08/01/26 (144A) (a) | 3810000 | 2800350 |
|  PM General Purchaser LLC<br>9.500%, 10/01/28 (144A) (a) | 5440000 | 4146645 |
|  |  | 32831078 |
| **Auto Parts & Equipment—0.6%** |  |  |
|  Clarios Global L.P. / Clarios U.S. Finance Co.<br>8.500%, 05/15/27 (144A) (a) | 4030000 | 3935281 |
|  Titan International, Inc.<br>7.000%, 04/30/28 (a) | 4980000 | 4701725 |
|  ZF North America Capital, Inc.<br>4.750%, 04/29/25 (144A) (a) | 4315000 | 4075688 |
|  |  | 12712694 |
| **Banks—4.4%** |  |  |
|  Banco Mercantil del Norte S.A.<br>7.625%, 10Y H15 + 5.353%, 01/10/28 (144A) (b) | 2150000 | 2009610 |
|  Barclays plc<br>2.000%, 5Y EUR Swap + 1.900%, 02/07/28 (EUR) (b) | 7010000 | 7443970 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.088%, 3M LIBOR + 3.054%, 06/20/30 (b) | 200000 | 184212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.750%, 5Y USD Swap + 4.842%, 09/15/23 (a) (b) | 3650000 | 3563495 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 5Y H15 + 5.672%, 06/15/24 (a) (b) | 5160000 | 5013486 |
|  BBVA Bancomer S.A.<br>5.125%, 5Y H15 + 2.650%, 01/18/33 (144A) (b) | 5980000 | 5367657 |
|  BNP Paribas S.A.<br>7.750%, 5Y H15 + 4.899%, 08/16/29 (144A) (a) (b) | 1930000 | 1917937 |
|  Credit Agricole S.A.<br>7.875%, 5Y USD Swap + 4.898%, 01/23/24 (144A) (a) (b) | 1750000 | 1733900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.125%, 5Y USD Swap + 6.185%, 12/23/25 (144A) (a) (b) | 7050000 | 7137420 |
|  Credit Suisse AG<br>1.000%, 05/05/23 | 3673000 | 3587816 |
|  Credit Suisse Group AG<br>6.537%, SOFR + 3.920%, 08/12/33 (144A) (a) (b) | 4280000 | 3755243 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.250%, 5Y USD ICE Swap + 4.332%, 09/12/25 (144A) (a) (b) | 650000 | 467258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 5Y USD Swap + 4.600%, 07/17/23 (144A) (a) (b) | 3390000 | 2709016 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.016%, SOFR + 5.020%, 11/15/33 (144A) (b) | 1960000 | 2006780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.750%, 5Y H15 + 6.383%, 06/23/27 (144A) (a) (b) | 5800000 | 5052191 |
|  HSBC Holdings plc<br>6.000%, 5Y USD ICE Swap +<br>3.746%, 05/22/27 (a) (b) | 390000 | 357946 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 5Y USD ICE Swap +<br>3.606%, 03/23/28 (a) (b) | 670000 | 616682 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Banks—(Continued)** | | |
|  Intesa Sanpaolo S.p.A.<br>3.375%, 01/12/23 (144A) | 1900000 | $1899062 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.710%, 01/15/26 (144A) (a) | 16030000 | 15404827 |
|  Lloyds Banking Group plc<br>4.947%, 5Y EURIBOR Swap + 5.290%, 06/27/25 (EUR) (b) | 5450000 | 5572379 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 5Y USD Swap + 4.760%, 06/27/24 (a) (b) | 3580000 | 3469736 |
|  Natwest Group plc<br>4.500%, 5Y UKG + 3.992%, 03/31/28 (GBP) (b) | 6600000 | 6103175 |
|  UBS Group AG<br>7.000%, 5Y USD Swap + 4.344%, 01/31/24 (144A) (b) | 6080000 | 5981646 |
|  UniCredit S.p.A.<br>5.459%, 5Y H15 + 4.750%, 06/30/35 (144A) (a) (b) | 4960000 | 4029742 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.296%, 5Y USD ICE Swap + 4.914%, 04/02/34 (144A) (a) (b) | 1750000 | 1603861 |
|  |  | 96989047 |
| **Biotechnology—0.2%** |  |  |
|  Cidron Aida Finco Sarl<br>6.250%, 04/01/28 (144A) (GBP) | 4110000 | 4024716 |
| **Building Materials—0.3%** |  |  |
|  Builders FirstSource, Inc.<br>4.250%, 02/01/32 (144A) (a) | 2644000 | 2143564 |
|  Smyrna Ready Mix Concrete LLC<br>6.000%, 11/01/28 (144A) (a) | 5470000 | 4894009 |
|  |  | 7037573 |
| **Chemicals—0.1%** |  |  |
|  Minerals Technologies, Inc.<br>5.000%, 07/01/28 (144A) (a) | 1690000 | 1505114 |
| **Commercial Services—2.4%** |  |  |
|  Adtalem Global Education, Inc.<br>5.500%, 03/01/28 (144A) | 2601000 | 2360408 |
|  Allied Universal Holdco LLC / Allied Universal Finance Corp.<br>6.625%, 07/15/26 (144A) (a) | 3050000 | 2790750 |
|  Carriage Services, Inc.<br>4.250%, 05/15/29 (144A) (a) | 5320000 | 4224602 |
|  CoreCivic, Inc.<br>8.250%, 04/15/26 (a) | 4890000 | 5014695 |
|  GEO Group, Inc. (The)<br>10.500%, 06/30/28 | 6380000 | 6442524 |
|  Legends Hospitality Holding Co. LLC / Legends Hospitality Co-Issuer, Inc.<br>5.000%, 02/01/26 (144A) | 6680000 | 5945200 |
|  Metropolitan Museum of Art (The)<br>3.400%, 07/01/45 (a) | 2025000 | 1587163 |
|  Paysafe Finance plc / Paysafe Holdings US Corp.<br>4.000%, 06/15/29 (144A) (a) | 3300000 | 2549250 |
|  Prime Security Services Borrower LLC / Prime Finance, Inc.<br>6.250%, 01/15/28 (144A) (a) | 2720000 | 2475635 |
| **Commercial Services—(Continued)** |  |  |
|  Rent-A-Center, Inc.<br>6.375%, 02/15/29 (144A) | 4291000 | 3471197 |
|  Sabre Global, Inc.<br>11.250%, 12/15/27 (144A) (a) | 3050000 | 3140661 |
|  StoneMor, Inc.<br>8.500%, 05/15/29 (144A) (a) | 5000000 | 4000000 |
|  United Rentals North America, Inc.<br>3.875%, 02/15/31 (a) | 3200000 | 2682528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/15/30 (a) | 1540000 | 1316387 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.250%, 01/15/30 (a) | 4000000 | 3758320 |
|  WW International, Inc.<br>4.500%, 04/15/29 (144A) | 1680000 | 839311 |
|  ZipRecruiter, Inc.<br>5.000%, 01/15/30 (144A) (a) | 1810000 | 1492200 |
|  |  | 54090831 |
| **Computers—0.3%** |  |  |
|  Crowdstrike Holdings, Inc.<br>3.000%, 02/15/29 (a) | 2405000 | 2029254 |
|  NCR Corp.<br>5.125%, 04/15/29 (144A) (a) | 4000000 | 3345293 |
|  Vericast Corp.<br>11.000%, 09/15/26 (144A) (a) | 1800000 | 1919250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 12.500%, 12/15/27 (a) | 230000 | 261625 |
|  |  | 7555422 |
| **Distribution/Wholesale—0.7%** |  |  |
|  American News Co. LLC<br>8.500%, 09/01/26 (144A) (a) (c) | 10470516 | 11674625 |
|  H&E Equipment Services, Inc.<br>3.875%, 12/15/28 (144A) | 4480000 | 3816019 |
|  |  | 15490644 |
| **Diversified Financial Services—2.5%** |  |  |
|  Accelerate360 Holdings LLC<br>8.000%, 03/01/28 (144A) | 10418100 | 11095277 |
|  AerCap Ireland Capital DAC / AerCap Global Aviation Trust<br>3.300%, 01/30/32 (a) | 2410000 | 1884043 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/15/23 (a) | 990000 | 983497 |
|  Aviation Capital Group LLC<br>5.500%, 12/15/24 (144A) (a) | 3560000 | 3496755 |
|  Avolon Holdings Funding, Ltd.<br>4.250%, 04/15/26 (144A) | 2950000 | 2674326 |
|  B3 SA - Brasil Bolsa Balcao<br>4.125%, 09/20/31 (144A) | 4000000 | 3370574 |
|  Burford Capital Global Finance LLC<br>6.875%, 04/15/30 (144A) | 720000 | 640690 |
|  Coinbase Global, Inc.<br>3.625%, 10/01/31 (144A) | 3720000 | 1791596 |
|  Global Aircraft Leasing Co., Ltd.<br>7.250%, 09/15/24 (144A) (a) (c) | 13731208 | 11671527 |
|  Jane Street Group / JSG Finance, Inc.<br>4.500%, 11/15/29 (144A) (a) | 1530000 | 1315800 |
|  Midcap Financial Issuer Trust<br>6.500%, 05/01/28 (144A) (a) | 5020000 | 4317200 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Diversified Financial Services—(Continued)** | | |
|  Navient Corp.<br>5.625%, 08/01/33 | 1680000 | $1196807 |
|  Park Aerospace Holdings, Ltd.<br>4.500%, 03/15/23 (144A) | 3800000 | 3790621 |
|  Rocket Mortgage LLC / Rocket Mortgage Co-Issuer, Inc.<br>3.625%, 03/01/29 (144A) | 2040000 | 1616574 |
|  StoneX Group, Inc.<br>8.625%, 06/15/25 (144A) (a) | 5085000 | 5135850 |
|  VistaJet Malta Finance plc / XO Management Holding, Inc.<br>6.375%, 02/01/30 (144A) (a) | 1280000 | 1026336 |
|  |  | 56007473 |
| **Electric—0.6%** |  |  |
|  FirstEnergy Corp.<br>4.400%, 07/15/27 | 1640000 | 1525607 |
|  NSG Holdings LLC / NSG Holdings, Inc.<br>7.750%, 12/15/25 (144A) | 733996 | 710141 |
|  Panoche Energy Center LLC<br>6.885%, 07/31/29 (144A) | 463009 | 439627 |
|  Southern California Edison Co.<br>3.900%, 03/15/43 | 1217000 | 937383 |
|  TransAlta Corp.<br>6.500%, 03/15/40 (a) | 8869000 | 8122485 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.750%, 11/15/29 | 2110000 | 2154904 |
|  |  | 13890147 |
| **Energy-Alternate Sources—0.1%** |  |  |
|  Alta Wind Holdings LLC<br>7.000%, 06/30/35 (144A) | 775593 | 766512 |
|  Sunnova Energy Corp.<br>5.875%, 09/01/26 (144A) | 1730000 | 1545565 |
|  |  | 2312077 |
| **Engineering & Construction—0.3%** |  |  |
|  TopBuild Corp.<br>3.625%, 03/15/29 (144A) (a) | 3010000 | 2467914 |
|  Tutor Perini Corp.<br>6.875%, 05/01/25 (144A) | 3863000 | 3380112 |
|  |  | 5848026 |
| **Entertainment—0.8%** |  |  |
|  Allen Media LLC / Allen Media Co-Issuer, Inc.<br>10.500%, 02/15/28 (144A) | 6590000 | 2504200 |
|  AMC Entertainment Holdings, Inc.<br>7.500%, 02/15/29 (144A) | 1610000 | 865230 |
|  Boyne USA, Inc.<br>4.750%, 05/15/29 (144A) (a) | 4120000 | 3646383 |
|  Mohegan Tribal Gaming Authority<br>13.250%, 12/15/27 | 3780000 | 3940650 |
|  Scientific Games International, Inc.<br>8.625%, 07/01/25 (144A) | 1600000 | 1632323 |
|  Wynn Resorts Finance LLC / Wynn Resorts Capital Corp.<br>7.750%, 04/15/25 (144A) (a) | 4268000 | 4244340 |
|  |  | 16833126 |
| **Environmental Control—0.2%** |  |  |
|  GFL Environmental, Inc.<br>4.750%, 06/15/29 (144A) (a) | 1647000 | 1441537 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 12/15/26 (144A) (a) | 2170000 | 2075187 |
|  |  | 3516724 |
| **Food—0.5%** |  |  |
|  Co-Operative Group, Ltd.<br>7.500%, 07/08/26 (GBP) (b) (d) | 2410000 | 2592954 |
|  FAGE International S.A. / FAGE USA Dairy Industry, Inc.<br>5.625%, 08/15/26 (144A) (a) | 6154000 | 5708696 |
|  Simmons Foods, Inc.<br>4.625%, 03/01/29 (144A) (a) | 4160000 | 3386459 |
|  |  | 11688109 |
| **Food Service—0.1%** |  |  |
|  TKC Holdings, Inc.<br>6.875%, 05/15/28 (144A) | 1580000 | 1234540 |
| **Forest Products & Paper—0.2%** |  |  |
|  Suzano Austria GmbH<br>3.125%, 01/15/32 (a) | 5000000 | 3898020 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 07/14/26 | 1200000 | 1203205 |
|  |  | 5101225 |
| **Healthcare-Products—0.2%** |  |  |
|  Medline Borrower L.P.<br>3.875%, 04/01/29 (144A) | 6510000 | 5246800 |
| **Healthcare-Services—1.0%** |  |  |
|  Akumin Escrow, Inc.<br>7.500%, 08/01/28 (144A) | 3840000 | 2339256 |
|  Akumin, Inc.<br>7.000%, 11/01/25 (144A) | 1417000 | 1014795 |
|  CHS/Community Health Systems, Inc.<br>6.125%, 04/01/30 (144A) (a) | 10700000 | 5298406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 04/15/29 (144A) (a) | 3630000 | 1865686 |
|  Fresenius Medical Care U.S. Finance II, Inc.<br>4.750%, 10/15/24 (144A) (a) | 700000 | 686878 |
|  HCA, Inc.<br>5.500%, 06/15/47 | 360000 | 319724 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 09/01/28 (a) | 2000000 | 1988665 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 11/06/33 | 1808000 | 1897899 |
|  Legacy LifePoint Health LLC<br>6.750%, 04/15/25 (144A) (a) | 4070000 | 3830236 |
|  RP Escrow Issuer LLC<br>5.250%, 12/15/25 (144A) | 2500000 | 1909126 |
|  U.S. Renal Care, Inc.<br>10.625%, 07/15/27 (144A) | 3931000 | 854993 |
|  |  | 22005664 |
| **Home Builders—0.1%** |  |  |
|  MDC Holdings, Inc.<br>6.000%, 01/15/43 (a) | 2195000 | 1783284 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Insurance—1.1%** | | |
|  Highlands Holdings Bond Issuer, Ltd. / Highlands Holdings Bond Co-Issuer, Inc.<br>7.625%, 8.375% PIK, 10/15/25 (144A) (c) | 6630000 | $6166484 |
|  Liberty Mutual Insurance Co.<br>7.697%, 10/15/97 (144A)† | 2600000 | 2808118 |
|  Massachusetts Mutual Life Insurance Co.<br>4.900%, 04/01/77 (144A)† | 6285000 | 5132926 |
|  NMI Holdings, Inc.<br>7.375%, 06/01/25 (144A) (a) | 3380000 | 3413800 |
|  Prudential Financial, Inc.<br>5.625%, 3M LIBOR + 3.920%, 06/15/43 (a) (b) | 550000 | 540375 |
|  Saga plc<br>5.500%, 07/15/26 (GBP) | 5800000 | 5195826 |
|  Teachers Insurance & Annuity Association of America<br>6.850%, 12/16/39 (144A) | 216000 | 237742 |
|  |  | 23495271 |
| **Internet—0.4%** |  |  |
|  Acuris Finance U.S., Inc. / Acuris Finance Sarl<br>5.000%, 05/01/28 (144A) | 2900000 | 2312750 |
|  Gen Digital, Inc.<br>7.125%, 09/30/30 (144A) | 5110000 | 5020575 |
|  Tencent Holdings, Ltd.<br>3.595%, 01/19/28 (144A) (a) | 2640000 | 2422037 |
|  |  | 9755362 |
| **Investment Companies—0.2%** |  |  |
|  The Vanguard Group, Inc.<br>3.050%, 08/28/50  | 7460000 | 4818854 |
| **Iron/Steel—0.2%** |  |  |
|  Vale Overseas, Ltd.<br>6.250%, 08/10/26 (a) | 2990000 | 3096843 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 11/10/39 (a) | 1180000 | 1243400 |
|  |  | 4340243 |
| **Leisure Time—1.3%** |  |  |
|  Carnival Corp.<br>10.500%, 06/01/30 (144A) (a) | 210000 | 170825 |
|  Carnival plc<br>7.875%, 06/01/27 | 13016000 | 12560440 |
|  NCL Corp., Ltd.<br>3.625%, 12/15/24 (144A) | 1240000 | 1059404 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 03/15/26 (144A) (a) | 2960000 | 2324991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 02/15/27 (144A) (a) | 5450000 | 4721335 |
|  Royal Caribbean Cruises, Ltd.<br>11.500%, 06/01/25 (144A) (a) | 1000000 | 1072500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 11.625%, 08/15/27 (144A) (a) | 2740000 | 2751590 |
|  Viking Ocean Cruises Ship VII, Ltd.<br>5.625%, 02/15/29 (144A) | 1460000 | 1175300 |
|  VOC Escrow, Ltd.<br>5.000%, 02/15/28 (144A) (a) | 3420000 | 2941542 |
|  |  | 28777927 |
| **Lodging—1.3%** |  |  |
|  Full House Resorts, Inc.<br>8.250%, 02/15/28 (144A) (a) | 2210000 | 1956535 |
|  Las Vegas Sands Corp.<br>3.200%, 08/08/24 | 4240000 | 4007609 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/18/26 | 280000 | 252784 |
|  Melco Resorts Finance, Ltd.<br>4.875%, 06/06/25 (144A) | 740000 | 679547 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 12/04/29 (144A) (a) | 7230000 | 5781036 |
|  Sands China, Ltd.<br>2.800%, 03/08/27 (a) | 200000 | 171286 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.350%, 03/08/29 | 1240000 | 1013021 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 08/08/31 | 470000 | 369841 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 08/08/25 (a) | 4610000 | 4407308 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.900%, 08/08/28 (a) | 1240000 | 1161016 |
|  Wynn Macau, Ltd.<br>5.125%, 12/15/29 (144A) | 5550000 | 4490449 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/15/26 (144A) | 1490000 | 1366837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 08/26/28 (144A) (a) | 3080000 | 2630597 |
|  |  | 28287866 |
| **Machinery-Construction & Mining—0.2%** |  |  |
|  Vertiv Group Corp.<br>4.125%, 11/15/28 (144A) (a) | 6250000 | 5312500 |
| **Machinery-Diversified—0.1%** |  |  |
|  Chart Industries, Inc.<br>7.500%, 01/01/30 (a) | 2340000 | 2352379 |
| **Media—2.3%** |  |  |
|  CCO Holdings LLC / CCO Holdings Capital Corp.<br>4.500%, 05/01/32 (a) | 4940000 | 3932240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/01/28 (144A) (a) | 2990000 | 2714890 |
|  Charter Communications Operating LLC / Charter Communications Operating Capital Corp.<br>3.500%, 03/01/42 | 470000 | 301156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.200%, 03/15/28 | 790000 | 726100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 04/01/38 | 1580000 | 1315432 |
|  CSC Holdings LLC<br>4.500%, 11/15/31 (144A) (a) | 3800000 | 2636493 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 01/15/30 (144A) | 770000 | 434272 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/01/29 (144A) (a) | 11000000 | 8992500 |
|  Directv Financing LLC / Directv Financing Co-Obligor, Inc.<br>5.875%, 08/15/27 (144A) (a) | 8040000 | 7193066 |
|  DISH DBS Corp.<br>5.750%, 12/01/28 (144A) (a) | 4330000 | 3455881 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 11/15/24 (a) | 9320000 | 8660460 |
|  Gannett Holdings LLC<br>6.000%, 11/01/26 (144A) (a) | 600000 | 489000 |
|  iHeartCommunications, Inc.<br>4.750%, 01/15/28 (144A) (a) | 2930000 | 2386016 |
|  Liberty Interactive LLC<br>8.500%, 07/15/29 | 5190000 | 2546759 |
|  McClatchy Co. LLC (The)<br>11.000%, 07/15/27 | 3500000 | 3915625 |
|  Time Warner Cable LLC<br>5.875%, 11/15/40 | 1942000 | 1691923 |
|  |  | 51391813 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Metal Fabricate/Hardware—0.4%** | | |
|  Advanced Drainage Systems, Inc.<br>6.375%, 06/15/30 (144A) (a) | 3110000 | $3021863 |
|  Park-Ohio Industries, Inc.<br>6.625%, 04/15/27 | 6897000 | 4685408 |
|  |  | 7707271 |
| **Mining—1.8%** |  |  |
|  Anglo American Capital plc<br>4.000%, 09/11/27 (144A) (a) | 2740000 | 2581394 |
|  First Quantum Minerals, Ltd.<br>6.875%, 03/01/26 (144A) (a) | 4400000 | 4166895 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 10/15/27 (144A) (a) | 13800000 | 12947481 |
|  Freeport Minerals Corp.<br>7.125%, 11/01/27 | 4240000 | 4499700 |
|  Freeport-McMoRan, Inc.<br>5.450%, 03/15/43 (a) | 10000000 | 9020400 |
|  Glencore Finance Canada, Ltd.<br>5.550%, 10/25/42 (144A) (a) | 1000000 | 897895 |
|  Hudbay Minerals, Inc.<br>4.500%, 04/01/26 (144A) (a) | 2660000 | 2416183 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 04/01/29 (144A) (a) | 2854000 | 2584439 |
|  Midwest Vanadium Pty, Ltd.<br>13.250%, 02/15/18 (144A)† (e) (f) (g) | 931574 | 0 |
|  Northwest Acquisitions ULC / Dominion Finco, Inc.<br>7.125%, 11/01/22 (144A)† (g) | 8475000 | 85 |
|  Teck Resources, Ltd.<br>6.000%, 08/15/40 (a) | 1774000 | 1692801 |
|  |  | 40807273 |
| **Office/Business Equipment—0.1%** |  |  |
|  CDW LLC / CDW Finance Corp.<br>3.250%, 02/15/29 (a) | 1610000 | 1371221 |
| **Oil & Gas—5.6%** |  |  |
|  Berry Petroleum Co. LLC<br>7.000%, 02/15/26 (144A) (a) | 11840000 | 10874277 |
|  Chord Energy Corp.<br>6.375%, 06/01/26 (144A) | 6890000 | 6710378 |
|  Colgate Energy Partners III LLC<br>5.875%, 07/01/29 (144A) (a) | 8880000 | 7626682 |
|  Continental Resources, Inc.<br>5.750%, 01/15/31 (144A) (a) | 3630000 | 3379023 |
|  Devon Energy Corp.<br>5.250%, 10/15/27 (a) | 584000 | 577886 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.250%, 08/01/23 | 5720000 | 5797879 |
|  Endeavor Energy Resources L.P. / EER Finance, Inc.<br>5.750%, 01/30/28 (144A) (a) | 3770000 | 3609850 |
|  EQT Corp.<br>7.000%, 02/01/30 (a) | 3480000 | 3609178 |
|  Hilcorp Energy I L.P. / Hilcorp Finance Co.<br>6.250%, 04/15/32 (144A) (a) | 3440000 | 2968430 |
|  KazMunayGas National Co. JSC<br>5.375%, 04/24/30 (144A) | 300000 | 268011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.375%, 10/24/48 (144A) | 1060000 | 871399 |
| **Oil & Gas—(Continued)** |  |  |
|  MEG Energy Corp.<br>5.875%, 02/01/29 (144A) (a) | 870000 | 820432 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 02/01/27 (144A) (a) | 5290000 | 5395229 |
|  Neptune Energy Bondco plc<br>6.625%, 05/15/25 (144A) | 5270000 | 5117211 |
|  Northern Oil and Gas, Inc.<br>8.125%, 03/01/28 (144A) (a) | 5580000 | 5357883 |
|  Occidental Petroleum Corp.<br>6.450%, 09/15/36 (a) | 3000000 | 3060000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.200%, 03/15/29 | 1502000 | 1554570 |
|  Petrobras Global Finance B.V.<br>5.750%, 02/01/29 (a) | 1000000 | 971250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.850%, 06/05/15 (a) | 6170000 | 5225306 |
|  Range Resources Corp.<br>4.750%, 02/15/30 (144A) (a) | 3060000 | 2696189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.250%, 01/15/29 (a) | 7430000 | 7656206 |
|  ROCC Holdings LLC<br>9.250%, 08/15/26 (144A) | 7120000 | 7088676 |
|  Southwestern Energy Co.<br>4.750%, 02/01/32 (a) | 4080000 | 3486727 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.750%, 10/01/27 (a) | 11103000 | 11315299 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.375%, 09/15/28 (a) | 4053000 | 4178402 |
|  Viper Energy Partners L.P.<br>5.375%, 11/01/27 (144A) (a) | 5505000 | 5227055 |
|  YPF S.A.<br>6.950%, 07/21/27 (144A) | 3360000 | 2380291 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.500%, 07/28/25 (144A) | 6350000 | 5321793 |
|  |  | 123145512 |
| **Packaging & Containers—0.8%** |  |  |
|  ARD Finance S.A.<br>6.500%, 7.25% PIK, 06/30/27 (144A) (a) (c) | 4470000 | 3109030 |
|  Ardagh Metal Packaging Finance U.S.A. LLC / Ardagh Metal Packaging Finance plc<br>4.000%, 09/01/29 (144A) (a) | 4700000 | 3724878 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/15/27 (144A) (a) | 1340000 | 1311787 |
|  Canpack S.A. / Canpack U.S. LLC<br>3.875%, 11/15/29 (144A) | 1396000 | 1100131 |
|  Cascades, Inc./Cascades USA, Inc.<br>5.375%, 01/15/28 (144A) (a) | 2610000 | 2284946 |
|  Pactiv LLC<br>7.950%, 12/15/25 (a) | 2510000 | 2424223 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.375%, 04/15/27 | 3416000 | 3313506 |
|  |  | 17268501 |
| **Pharmaceuticals—1.3%** |  |  |
|  AdaptHealth LLC<br>4.625%, 08/01/29 (144A) (a) | 3650000 | 3055962 |
|  Bausch Health Americas, Inc.<br>9.250%, 04/01/26 (144A) (a) | 830000 | 580999 |
|  Bausch Health Cos., Inc.<br>5.000%, 01/30/28 (144A) | 480000 | 230397 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 11/01/25 (144A) (a) | 2470000 | 2098306 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 02/01/27 (144A) (a) | 2470000 | 1703386 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 01/15/28 (144A) | 1070000 | 517183 |
|  Cheplapharm Arzneimittel GmbH<br>5.500%, 01/15/28 (144A) | 2840000 | 2374808 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Pharmaceuticals—(Continued)** | | |
|  Option Care Health, Inc.<br>4.375%, 10/31/29 (144A) (a) | 6360000 | $5563156 |
|  Teva Pharmaceutical Finance Co. LLC<br>6.150%, 02/01/36 | 11965000 | 10518033 |
|  Teva Pharmaceutical Finance Netherlands III B.V.<br>4.750%, 05/09/27 (a) | 3410000 | 3082298 |
|  |  | 29724528 |
| **Pipelines—3.3%** |  |  |
|  Blue Racer Midstream LLC / Blue Racer Finance Corp.<br>7.625%, 12/15/25 (144A) (a) | 5130000 | 5091802 |
|  Cheniere Energy Partners L.P.<br>3.250%, 01/31/32 (a) | 608000 | 483182 |
|  DCP Midstream Operating L.P.<br>6.750%, 09/15/37 (144A) | 3480000 | 3507799 |
|  El Paso Natural Gas Co. LLC<br>7.500%, 11/15/26 (a) | 4250000 | 4510790 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.375%, 06/15/32 | 190000 | 214861 |
|  Energy Transfer L.P.<br>6.250%, 3M LIBOR + 4.028%, 02/15/23 (b) | 2030000 | 1725500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 04/15/49 | 1090000 | 1013563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 5Y H15 + 5.306%, 05/15/30 (b) | 1950000 | 1628250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.600%, 02/01/24 | 630000 | 640479 |
|  Enterprise Products Operating LLC<br>5.375%, 3M LIBOR + 2.570%, 02/15/78 (a) (b) | 13090000 | 9981873 |
|  EQM Midstream Partners L.P.<br>6.000%, 07/01/25 (144A) (a) | 1880000 | 1814194 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/01/27 (144A) (a) | 1660000 | 1586545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 06/01/30 (144A) | 2660000 | 2562963 |
|  Howard Midstream Energy Partners LLC<br>6.750%, 01/15/27 (144A) (a) | 3590000 | 3441181 |
|  Kinder Morgan, Inc.<br>7.800%, 08/01/31 | 67000 | 74714 |
|  Plains All American Pipeline L.P.<br>8.716%, 3M LIBOR + 4.110%, 01/30/23 (b) | 3818000 | 3283480 |
|  Rockies Express Pipeline LLC<br>7.500%, 07/15/38 (144A) | 2480000 | 2294000 |
|  Southern Natural Gas Co. LLC<br>8.000%, 03/01/32 (a) | 25000 | 27423 |
|  Summit Midstream Holdings LLC / Summit Midstream Finance Corp.<br>8.500%, 10/15/26 (144A) | 1220000 | 1161952 |
|  Tallgrass Energy Partners L.P. / Tallgrass Energy Finance Corp.<br>6.000%, 12/31/30 (144A) (a) | 3230000 | 2793078 |
|  Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.<br>4.875%, 02/01/31 | 5120000 | 4623104 |
|  Venture Global Calcasieu Pass LLC<br>3.875%, 11/01/33 (144A) (a) | 4010000 | 3275769 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 08/15/31 (144A) (a) | 3570000 | 3041622 |
|  Western Midstream Operating L.P.<br>5.300%, 03/01/48 (a) | 4900000 | 4028912 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.450%, 04/01/44 (a) | 11710000 | 9727731 |
|  |  | 72534767 |
| **Real Estate—0.2%** |  |  |
|  Country Garden Holdings Co., Ltd.<br>8.000%, 01/27/24 | 1110000 | 854870 |
|  Five Point Operating Co. L.P. / Five Point Capital Corp.<br>7.875%, 11/15/25 (144A) (a) | 4047000 | 3401994 |
|  |  | 4256864 |
| **Real Estate Investment Trusts—0.9%** |  |  |
|  Apollo Commercial Real Estate Finance, Inc.<br>4.625%, 06/15/29 (144A) (a) | 2840000 | 2273108 |
|  Diversified Healthcare Trust<br>9.750%, 06/15/25 (a) | 1750000 | 1676438 |
|  IIP Operating Partnership L.P.<br>5.500%, 05/25/26 | 3110000 | 2753813 |
|  Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp.<br>4.250%, 02/01/27 (144A) (a) | 1836000 | 1542294 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.750%, 06/15/29 (144A) | 2090000 | 1687382 |
|  MPT Operating Partnership L.P. / MPT Finance Corp.<br>3.692%, 06/05/28 (GBP) | 4656000 | 4112420 |
|  Service Properties Trust<br>4.350%, 10/01/24 | 670000 | 609078 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/15/27 | 1275000 | 1097981 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 09/15/25 (a) | 4280000 | 4078521 |
|  |  | 19831035 |
| **Retail—1.8%** |  |  |
|  Abercrombie & Fitch Management Co.<br>8.750%, 07/15/25 (144A) | 5195000 | 5090879 |
|  Bath & Body Works, Inc.<br>5.250%, 02/01/28 (a) | 5000000 | 4643250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 10/01/30 (144A) (a) | 1850000 | 1736045 |
|  Bed Bath & Beyond, Inc.<br>5.165%, 08/01/44 | 6312000 | 631200 |
|  Carrols Restaurant Group, Inc.<br>5.875%, 07/01/29 (144A) (a) | 1060000 | 742914 |
|  Doman Building Materials Group, Ltd.<br>5.250%, 05/15/26 (144A) (CAD) | 3680000 | 2417222 |
|  Fertitta Entertainment LLC / Fertitta Entertainment Finance Co., Inc.<br>4.625%, 01/15/29 (144A) (a) | 2490000 | 2107125 |
|  FirstCash, Inc.<br>5.625%, 01/01/30 (144A) (a) | 3060000 | 2723599 |
|  Foot Locker, Inc.<br>4.000%, 10/01/29 (144A) (a) | 930000 | 724497 |
|  Michaels Cos, Inc. (The)<br>5.250%, 05/01/28 (144A) (a) | 2660000 | 2140052 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.875%, 05/01/29 (144A) (a) | 5110000 | 3414340 |
|  Sally Holdings LLC / Sally Capital, Inc.<br>5.625%, 12/01/25 (a) | 4760000 | 4585284 |
|  Suburban Propane Partners L.P./Suburban Energy Finance Corp.<br>5.000%, 06/01/31 (144A) (a) | 2430000 | 2065457 |
|  Superior Plus L.P. / Superior General Partner, Inc.<br>4.500%, 03/15/29 (144A) (a) | 2320000 | 1983600 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Corporate Bonds & Notes—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Retail—(Continued)** | | | |
|  Wendy's International LLC<br>7.000%, 12/15/25 | 5178000 | $| 5314233 |
|  |  |  | 40319697 |
| **Semiconductors—0.0%** |  |  |  |
|  Broadcom, Inc.<br>3.187%, 11/15/36 (144A) (a) | 135000 |  | 96969 |
| **Software—1.3%** |  |  |  |
|  AthenaHealth Group, Inc.<br>6.500%, 02/15/30 (144A) (a) | 6500000 |  | 4790059 |
|  Black Knight InfoServ LLC<br>3.625%, 09/01/28 (144A) (a) | 3680000 |  | 3185040 |
|  Central Parent, Inc, / CDK Global, Inc.<br>7.250%, 06/15/29 (144A) (a) | 7050000 |  | 6895759 |
|  MSCI, Inc.<br>3.875%, 02/15/31 (144A) (a) | 1140000 |  | 947825 |
|  Open Text Holdings, Inc.<br>4.125%, 02/15/30 (144A) (a) | 2500000 |  | 2005412 |
|  Rackspace Technology Global, Inc.<br>3.500%, 02/15/28 (144A) | 4980000 |  | 2893978 |
|  Ziff Davis, Inc.<br>4.625%, 10/15/30 (144A) (a) | 5586000 |  | 4726761 |
|  ZoomInfo Technologies LLC<br>3.875%, 02/01/29 (144A) (a) | 3940000 |  | 3311107 |
|  |  |  | 28755941 |
| **Telecommunications—1.1%** |  |  |  |
|  Altice France Holding S.A.<br>10.500%, 05/15/27 (144A) (a) | 9640000 |  | 7350500 |
|  British Telecommunications plc<br>9.625%, 12/15/30 | 3875000 |  | 4640425 |
|  Millicom International Cellular S.A.<br>4.500%, 04/27/31 (144A) (a) | 3930000 |  | 3305594 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.250%, 03/25/29 (144A) (a) | 1395000 |  | 1333650 |
|  Sprint Capital Corp.<br>8.750%, 03/15/32 (a) | 2069000 |  | 2462317 |
|  Viavi Solutions, Inc.<br>3.750%, 10/01/29 (144A) (a) | 1940000 |  | 1630482 |
|  Vmed O2 UK Financing I plc<br>4.750%, 07/15/31 (144A) (a) | 4620000 |  | 3753057 |
|  |  |  | 24476025 |
| **Transportation—0.4%** |  |  |  |
|  Carriage Purchaser, Inc.<br>7.875%, 10/15/29 (144A) | 2190000 |  | 1554900 |
|  XPO CNW, Inc.<br>6.700%, 05/01/34 (a) | 7991000 |  | 7074432 |
|  XPO Escrow Sub LLC<br>7.500%, 11/15/27 (a) | 1170000 |  | 1183947 |
|  |  |  | 9813279 |
|  Total Corporate Bonds & Notes <br>(Cost $1,171,584,622) |  |  | 1021474746 |
| **Floating Rate Loans (h)—18.0%** | **Floating Rate Loans (h)—18.0%** | **Floating Rate Loans (h)—18.0%** | **Floating Rate Loans (h)—18.0%** |
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Advertising—0.4%** |  |  |  |
|  CMG Media Corp.<br>Term Loan, 8.230%, 1M LIBOR + 3.500%, 12/17/26 | 4701527 |  | 4412717 |
|  Polyconcept Holding B.V.<br>Term Loan B, 9.823%, 1M TSFR + 5.500%, 05/18/29 | 5356575 |  | 5035181 |
|  |  |  | 9447898 |
| **Aerospace/Defense—0.7%** |  |  |  |
|  Vertex Aerospace Services Corp.<br>1st Lien Term Loan, 7.884%, 1M LIBOR + 3.500%, 12/06/28 | 8217900 |  | 8161402 |
|  WP CPP Holdings LLC<br>2nd Lien Incremental Term Loan, 12.170%, 3M LIBOR + 7.750%, 04/30/26 | 3300000 |  | 2780250 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 8.170%, 3M LIBOR + 3.750%, 04/30/25 | 4914721 |  | 4306524 |
|  |  |  | 15248176 |
| **Airlines—0.7%** |  |  |  |
|  Air Canada<br>Term Loan B, 8.130%, 3M LIBOR + 3.500%, 08/11/28 | 5581950 |  | 5530780 |
|  Mileage Plus Holdings LLC<br>Term Loan B, 9.996%, 3M LIBOR + 5.250%, 06/21/27 | 6039000 |  | 6225201 |
|  United Airlines, Inc.<br>Term Loan B, 8.108%, 3M LIBOR + 3.750%, 04/21/28 | 4733027 |  | 4683723 |
|  |  |  | 16439704 |
| **Apparel—0.3%** |  |  |  |
|  Fanatics Commerce Intermediate Holdco LLC<br>Term Loan B, 7.634%, 1M LIBOR + 3.250%, 11/24/28 | 6435000 |  | 6330431 |
| **Auto Parts & Equipment—0.2%** |  |  |  |
|  First Brands Group LLC<br>2nd Lien Term Loan, 11.871%, 3M LIBOR + 8.500%, 03/30/28 | 1950000 |  | 1764750 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 8.368%, 3M TSFR + 5.000%, 03/30/27 | 3183300 |  | 3032093 |
|  |  |  | 4796843 |
| **Beverages—0.1%** |  |  |  |
|  City Brewing Co. LLC<br>Term Loan, 7.792%, 1M LIBOR + 3.500%, 04/05/28 | 3026139 |  | 1361763 |
|  Naked Juice LLC<br>Term Loan, 7.930%, 3M TSFR + 3.250%, 01/24/29 | 368912 |  | 331197 |
|  |  |  | 1692960 |
| **Building Materials—0.5%** |  |  |  |
|  Quikrete Holdings, Inc.<br>Term Loan B1, 7.384%, 1M LIBOR + 3.000%, 06/11/28 | 3364575 |  | 3342847 |

---

**BHFTII-11** 

*See accompanying notes to financial statements.* 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Floating Rate Loans (h)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Building Materials—(Continued)** | | |
|  Solis IV B.V.<br>USD Term Loan B1, 7.859%, 3M TSFR + 3.500%, 02/26/29 | 7591850 | $6721634 |
|  |  | 10064481 |
| **Chemicals—0.2%** |  |  |
|  Hexion Holdings Corp.<br>USD Term Loan, 8.934%, 3M TSFR + 4.500%, 03/15/29 | 6139150 | 5291947 |
| **Commercial Services—2.2%** |  |  |
|  Adtalem Global Education, Inc.<br>Term Loan B, 8.389%, 1M LIBOR + 4.000%, 08/12/28 | 2418127 | 2403877 |
|  Amentum Government Services Holdings LLC<br>2nd Lien Term Loan, 13.901%, 6M LIBOR + 8.750%, 01/31/28 | 4140000 | 3808800 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 8.528%, 3M TSFR + 4.000%, 02/15/29 | 8765950 | 8557759 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B, 8.724%, 3M LIBOR + 4.000%, 01/29/27 | 4602074 | 4507156 |
|  Garda World Security Corp.<br>Term Loan B, 8.535%, 3M TSFR + 4.250%, 02/01/29 | 4897725 | 4730384 |
|  Lakeshore Intermediate LLC<br>Term Loan, 8.230%, 3M LIBOR + 3.500%, 09/29/28 | 5999400 | 5875662 |
|  Mavis Tire Express Services Corp.<br>Term Loan B, 8.500%, 1M TSFR + 4.000%, 05/04/28 | 2324600 | 2223729 |
|  Mister Car Wash Holdings, Inc.<br>Term Loan B, 7.423%, 1M LIBOR + 3.000%, 05/14/26 | 1741885 | 1721667 |
|  PECF USS Intermediate Holding III Corp.<br>Term Loan B, 8.634%, 1M LIBOR + 4.250%, 12/15/28 | 5266800 | 4410397 |
|  TruGreen L.P.<br>2nd Lien Term Loan, 13.431%, 3M LIBOR + 8.500%, 11/02/28 | 1820000 | 1346800 |
|  Verscend Holding Corp.<br>Term Loan B, 8.384%, 1M LIBOR + 4.000%, 08/27/25 | 1881777 | 1874720 |
|  VT Topco, Inc.<br>2nd Lien Term Loan, 11.134%, 1M LIBOR + 6.750%, 07/31/26 | 3070000 | 2947200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Delayed Draw Term Loan, 3.750%, 1M LIBOR + 3.750%, 08/01/25 (i) | 236373 | 230058 |
| &nbsp;&nbsp;&nbsp;&nbsp; Incremental Term Loan, 8.134%, 1M LIBOR + 3.750%, 08/01/25 | 3485304 | 3392180 |
|  |  | 48030389 |
| **Computers—1.3%** |  |  |
|  Magenta Buyer LLC<br>USD 1st Lien Term Loan, 9.170%, 3M LIBOR + 4.750%, 07/27/28 | 7514100 | 6471519 |
| &nbsp;&nbsp;&nbsp;&nbsp; USD 2nd Lien Term Loan, 12.670%, 3M LIBOR + 8.250%, 07/27/29 | 8260000 | 6525400 |
| **Computers—(Continued)** |  |  |
|  Redstone Holdco 2 L.P.<br>2nd Lien Term Loan, 12.108%, 3M LIBOR + 7.750%, 04/27/29 | 8040000 | 4056180 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 9.108%, 3M LIBOR + 4.750%, 04/27/28 | 8630750 | 6037210 |
|  Surf Holdings LLC<br>USD Term Loan, 8.235%, 3M LIBOR + 3.500%, 03/05/27 | 1628213 | 1582564 |
|  UST Holdings, Ltd.<br>Term Loan, 8.137%, 1M LIBOR + 3.750%, 11/20/28 | 4395600 | 4340655 |
|  |  | 29013528 |
| **Diversified Financial Services—1.7%** |  |  |
|  Citadel Securities L.P.<br>Term Loan B, 6.938%, 1M TSFR+ 2.500%, 02/02/28 | 2953639 | 2903335 |
|  CTC Holdings L.P.<br>Term Loan B, 8.356%, 3M TSFR + 5.000%, 02/20/29 | 4234883 | 4065487 |
|  Deerfield Dakota Holding LLC<br>USD 2nd Lien Term Loan, 11.134%, 1M LIBOR + 6.750%, 04/07/28 | 2060000 | 1973738 |
| &nbsp;&nbsp;&nbsp;&nbsp; USD Term Loan B, 8.073%, 1M TSFR + 3.750%, 04/09/27 | 2076750 | 1943709 |
|  Focus Financial Partners LLC<br>2022 Term Loan B5, 7.572%, 1M TSFR+ 3.250%, 06/30/28 | 3777 | 3741 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B4, 6.822%, 1M LIBOR + 2.500%, 06/30/28 | 5016006 | 4942857 |
|  Greystone Select Financial LLC<br>Term Loan B, 9.227%, 3M LIBOR + 5.000%, 06/16/28 | 5410892 | 5221511 |
|  Hudson River Trading LLC<br>Term Loan, 7.438%, 1M TSFR + 3.000%, 03/20/28 | 10434855 | 9884229 |
|  Jane Street Group LLC<br>Term Loan, 7.134%, 1M LIBOR + 2.750%, 01/26/28 | 5216723 | 5070003 |
|  VFH Parent LLC<br>2022 Term Loan B, 7.421%, 1M TSFR + 3.000%, 01/13/29 | 2660000 | 2601813 |
|  |  | 38610423 |
| **Engineering & Construction—0.4%** |  |  |
|  Brown Group Holding LLC<br>Term Loan B, 6.884%, 1M LIBOR + 2.500%, 06/07/28 | 4971845 | 4891942 |
|  Tutor Perini Corp.<br>Term Loan B, 9.134%, 3M LIBOR + 4.750%, 08/18/27 | 3704725 | 3498650 |
|  |  | 8390592 |
| **Entertainment—0.5%** |  |  |
|  Allen Media LLC<br>Term Loan B, 10.230%, 3M LIBOR + 5.500%, 02/10/27 | 8762793 | 7236148 |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Floating Rate Loans (h)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Entertainment—(Continued)** | | |
|  UFC Holdings LLC<br>Term Loan B, 7.110%, 3M LIBOR + 2.750%, 04/29/26 | 4405026 | $4356501 |
|  |  | 11592649 |
| **Environmental Control—0.7%** |  |  |
|  Liberty Tire Recycling Holdco LLC<br>Term Loan, 8.884%, 3M LIBOR + 4.500%, 05/05/28 | 7328400 | 6693270 |
|  LRS Holdings LLC<br>Term Loan B, 8.634%, 1M LIBOR + 4.250%, 08/31/28 | 7157700 | 6969810 |
|  Madison IAQ LLC<br>Term Loan, 7.988%, 3M LIBOR + 3.250%, 06/21/28 | 2570850 | 2395176 |
|  |  | 16058256 |
| **Food—0.4%** |  |  |
|  8th Avenue Food & Provisions, Inc.<br>2nd Lien Term Loan, 12.137%, 1M LIBOR + 7.750%, 10/01/26 | 1452297 | 815707 |
|  Del Monte Foods, Inc.<br>Term Loan, 8.671%, 1M TSFR + 4.250%, 05/16/29 | 5220000 | 5076450 |
|  Froneri International, Ltd.<br>Term Loan, 2.756%, 6M EURIBOR + 2.125%, 01/29/27 (EUR) | 2780000 | 2787068 |
|  |  | 8679225 |
| **Healthcare-Services—1.2%** |  |  |
|  EyeCare Partners LLC<br>2nd Lien Term Loan, 11.480%, 3M LIBOR + 6.750%, 11/15/29 | 3930000 | 3301200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Incremental Term Loan, 8.480%, 3M LIBOR + 3.750%, 11/15/28 | 4237975 | 3605809 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 8.480%, 3M LIBOR + 3.750%, 02/18/27 | 4674657 | 3977353 |
|  Global Medical Response, Inc.<br>Term Loan B, 8.422%, 1M LIBOR + 4.250%, 10/02/25 | 3537800 | 2508891 |
|  Knight Health Holdings LLC<br>Term Loan B, 9.634%, 1M LIBOR + 5.250%, 12/23/28 | 5732100 | 3439260 |
|  One Call Corp.<br>Term Loan, 9.875%, 3M LIBOR + 5.500%, 04/22/27 | 6166100 | 5133278 |
|  Phoenix Guarantor, Inc.<br>Term Loan B, 7.634%, 1M LIBOR + 3.250%, 03/05/26 | 2082804 | 1959137 |
|  U.S. Renal Care, Inc.<br>Term Loan B, 9.438%, 1M LIBOR + 5.000%, 06/26/26 | 6335654 | 3567765 |
|  |  | 27492693 |
| **Insurance—0.9%** |  |  |
|  Acrisure LLC<br>Term Loan B, 7.884%, 1M LIBOR + 3.500%, 02/15/27 | 2907775 | 2736338 |
|  Ascensus Holdings, Inc.<br>Term Loan, 8.250%, 3M LIBOR + 3.500%, 08/02/28 | 4615125 | 4413213 |
| **Insurance—(Continued)** |  |  |
|  Asurion LLC<br>Second Lien Term Loan B4, 9.634%, 1M LIBOR + 5.250%, 01/20/29 | 8950000 | 7003375 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B9, 7.634%, 1M LIBOR + 3.250%, 07/31/27 | 3228732 | 2829984 |
|  Sedgwick Claims Management Services, Inc.<br>Term Loan B, 7.634%, 1M LIBOR + 3.250%, 12/31/25 | 2383145 | 2322928 |
|  |  | 19305838 |
| **Investment Companies—0.3%** |  |  |
|  Cardinal Parent, Inc.<br>Term Loan B, 9.230%, 3M LIBOR + 4.500%, 11/12/27 | 5594355 | 4978976 |
|  Jump Financial LLC<br>Term Loan B, 9.342%, 3M TSFR + 4.500%, 08/07/28 | 2227444 | 2121640 |
|  |  | 7100616 |
| **Leisure Time—1.1%** |  |  |
|  19th Holdings Golf LLC<br>Term Loan B, 7.281%, 1M TSFR + 3.000%, 02/07/29 | 8059500 | 7414740 |
|  Carnival Corp.<br>Incremental Term Loan B, 7.634%, 6M LIBOR + 3.250%, 10/18/28 | 3758078 | 3526329 |
|  ClubCorp Holdings, Inc.<br>Term Loan B, 7.480%, 3M LIBOR + 2.750%, 09/18/24 | 5799187 | 5251888 |
|  Equinox Holdings, Inc.<br>Term Loan B2, 13.730%, 3M LIBOR + 9.000%, 03/08/24 | 2164500 | 1742422 |
|  Hayward Industries, Inc.<br>2022 Term Loan, 7.673%, 1M TSFR + 3.250%, 05/30/28 | 2094750 | 2008342 |
|  Hornblower Sub LLC<br>Repriced Term Loan B, 8.670%, 3M LIBOR + 4.500%, 04/27/25 | 6698069 | 4722139 |
|  |  | 24665860 |
| **Lodging—0.1%** |  |  |
|  Caesars Resort Collection LLC<br>Term Loan B1, 7.884%, 1M LIBOR + 3.500%, 07/21/25 | 1609394 | 1607131 |
| **Machinery-Diversified—0.3%** |  |  |
|  SPX Flow, Inc.<br>Term Loan, 8.923%, 1M TSFR + 4.500%, 04/05/29 | 7391475 | 6897170 |
| **Pharmaceuticals—0.3%** |  |  |
|  Gainwell Acquisition Corp.<br>Term Loan B, 8.730%, 3M LIBOR + 4.000%, 10/01/27 | 4747418 | 4504113 |
|  Grifols Worldwide Operations USA, Inc.<br>USD Term Loan B, 6.384%, 1M LIBOR + 2.000%, 11/15/27 | 1647661 | 1594112 |
|  |  | 6098225 |

---

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Floating Rate Loans (h)—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Real Estate Investment Trusts—0.3%** | | | |
|  Apollo Commercial Real Estate Finance, Inc.<br>Incremental Term Loan B1, 7.889%, 1M LIBOR + 3.500%, 03/11/28 | 7263113 | $| 6791010 |
| **Retail—1.0%** |  |  |  |
|  Empire Today LLC<br>Term Loan B, 9.292%, 3M LIBOR + 5.000%, 04/03/28 | 5778381 |  | 4362677 |
|  Great Outdoors Group LLC<br>Term Loan B1, 8.134%, 1M LIBOR + 3.750%, 03/06/28 | 6924781 |  | 6676645 |
|  Pacific Bells LLC<br>Term Loan B, 9.342%, 1M LIBOR + 4.500%, 11/10/28 | 3237637 |  | 3059567 |
|  Spencer Spirit IH LLC<br>Term Loan B, 10.172%, 1M LIBOR + 6.000%, 06/19/26 | 5321888 |  | 5246717 |
|  Thermostat Purchaser III, Inc.<br>Delayed Draw Term Loan, 08/31/28 (i) | 367274 |  | 347074 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 9.235%, 3M LIBOR + 4.500%, 08/31/28 | 2368357 |  | 2238098 |
|  |  |  | 21930778 |
| **Software—1.7%** |  |  |  |
|  AppLovin Corp.<br>Term Loan B, 7.730%, 3M LIBOR + 3.000%, 10/25/28 | 2503520 |  | 2384603 |
|  Athenahealth, Inc.<br>Delayed Draw Term Loan, 7.821%, 1M TSFR+ 3.500%, 02/15/29 (i) | 118443 |  | 107240 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B, 7.821%, 1M TSFR + 3.500%, 02/15/29 | 695310 |  | 629545 |
|  Cloudera, Inc.<br>2nd Lien Term Loan, 10.384%, 1M LIBOR + 6.000%, 10/08/29 | 3700000 |  | 3103375 |
|  DCert Buyer, Inc.<br>2nd Lien Term Loan, 11.696%, 6M LIBOR + 7.000%, 02/19/29 | 8990000 |  | 8214613 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan B, 8.696%, 6M TSFR + 4.000%, 10/16/26 | 4281404 |  | 4142258 |
|  Particle Investments S.a.r.l.<br>Term Loan, 9.980%, 3M LIBOR + 5.250%, 02/18/27 | 3232565 |  | 3159832 |
|  Planview Parent, Inc.<br>Term Loan, 12/17/27 (n) | 3760407 |  | 3509712 |
|  Rackspace Technology Global, Inc.<br>Term Loan B, 7.380%, 3M LIBOR + 2.750%, 02/15/28 | 1729958 |  | 1089152 |
|  Seattle Spinco, Inc.<br>USD Term Loan B3, 7.134%, 1M LIBOR + 2.750%, 06/21/24 | 1684051 |  | 1678438 |
|  Virgin Pulse, Inc.<br>2nd Lien Term Loan, 11.634%, 1M LIBOR + 7.250%, 04/06/29 | 2890000 |  | 2254200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loan, 8.384%, 1M LIBOR + 4.000%, 04/06/28 | 9001585 |  | 7656973 |
|  |  |  | 37929941 |
| **Telecommunications—0.2%** |  |  |  |
|  Global Tel\*Link Corp.<br>1st Lien Term Loan, 8.344%, 3M LIBOR + 4.250%, 11/29/25 | 5221451 |  | 4549189 |
| **Transportation—0.3%** |  |  |  |
|  Worldwide Express Operations LLC<br>1st Lien Term Loan, 8.730%, 3M LIBOR + 4.000%, 07/26/28 | 7236900 |  | 6639856 |
|  Total Floating Rate Loans <br>(Cost $444,898,929) |  |  | 400695809 |
| **Mortgage-Backed Securities—9.1%** | **Mortgage-Backed Securities—9.1%** | **Mortgage-Backed Securities—9.1%** | **Mortgage-Backed Securities—9.1%** |
| **Collateralized Mortgage Obligations—5.4%** | **Collateralized Mortgage Obligations—5.4%** | **Collateralized Mortgage Obligations—5.4%** | **Collateralized Mortgage Obligations—5.4%** |
|  Alternative Loan Trust<br>5.750%, 01/25/37 | 1390299 |  | 759229 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/25/37 | 1244726 |  | 856762 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.285%, -2.2x 1M LIBOR + 16.940%, 06/25/35 (b) | 773333 |  | 630478 |
| &nbsp;&nbsp;&nbsp;&nbsp; 11.045%, -4x 1M LIBOR + 28.600%, 07/25/36 (b) | 1497858 |  | 1405764 |
| &nbsp;&nbsp;&nbsp;&nbsp; 12.668%, -6x 1M LIBOR + 39.000%, 08/25/37 (b) | 612013 |  | 722517 |
|  Alternative Loan Trust Resecuritization<br>4.205%, 08/25/37 (b) | 1888674 |  | 977034 |
|  Angel Oak Mortgage Trust<br>4.167%, 01/25/67 (144A) (b) | 4079739 |  | 3510824 |
|  Banc of America Funding Corp.<br>3.184%, 02/27/37 (144A) (b) | 16804506 |  | 14410591 |
|  Banc of America Funding Trust<br>2.770%, 1M LIBOR + 0.165%, 09/29/36 (144A) (b) | 21576980 |  | 16713973 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.007%, 03/27/36 (144A) (b) | 4367571 |  | 3632431 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.655%, 01/27/30 (144A) (b) | 21984893 |  | 7273966 |
|  Banc of America Mortgage Trust<br>3.943%, 09/25/35 (b) | 24442 |  | 20731 |
|  BCAP LLC Trust<br>3.255%, 05/26/47 (144A) (b) | 2986388 |  | 2714421 |
|  Bear Stearns Asset-Backed Securities Trust<br>17.234%, -4.33x 1M LIBOR + 36.250%, 07/25/36 (b) | 184731 |  | 182295 |
|  BRAVO Residential Funding Trust<br>3.125%, 01/29/70 (144A) (d) | 5792506 |  | 5130344 |
|  Citigroup Mortgage Loan Trust<br>6.170%, 09/25/62 (144A) (d) | 4688770 |  | 4582578 |
|  Countrywide Home Loan Reperforming Loan REMIC Trust 2.207%, 03/25/35 (144A)† (b) (j) | 2213580 |  | 110308 |
|  CSMC Mortgage-Backed Trust<br>6.387%, -5.5x 1M LIBOR + 30.525%, 02/25/36 (b) | 511413 |  | 496408 |
|  CSMC Trust<br>1.796%, 12/27/60 (144A) (b) | 1952427 |  | 1783777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/25/60 (144A) (b) | 1123547 |  | 983877 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.937%, 09/27/60 (144A) | 5360000 |  | 5044314 |
|  Flagstar Mortgage Trust<br>3.500%, 04/25/48 (144A) (b) | 84397 |  | 82715 |
|  GreenPoint Mortgage Funding Trust<br>4.829%, 1M LIBOR + 0.440%, 06/25/45 (b) | 575036 |  | 522464 |
|  GSMPS Mortgage Loan Trust<br>4.789%, 1M LIBOR + 0.400%, 04/25/36 (144A) (b) | 786769 |  | 649864 |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** |
|  HarborView Mortgage Loan Trust<br>5.389%, 1M LIBOR + 2.000%, 10/25/37 (b) | 609487 | $| 538541 |
|  IndyMac INDX Mortgage Loan Trust<br>5.109%, 1M LIBOR + 0.720%, 01/25/35 (b) | 526774 |  | 402657 |
|  JPMorgan Mortgage Trust<br>6.500%, 01/25/36 | 63074 |  | 33950 |
|  Legacy Mortgage Asset Trust<br>3.250%, 06/25/60 (144A) (d) | 2159311 |  | 2124186 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.844%, 10/25/66 (144A) (d) | 2770000 |  | 2310905 |
|  Lehman XS Trust<br>4.789%, 1M LIBOR + 0.400%, 08/25/46 (b) | 847364 |  | 754206 |
|  MASTR Seasoned Securitization Trust<br>4.337%, 10/25/32 (b) | 45889 |  | 44792 |
|  Merrill Lynch Mortgage Investors Trust<br>3.068%, 05/25/34 (b) | 27796 |  | 24625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.983%, 08/25/33 (b) | 188497 |  | 168607 |
|  Morgan Stanley Mortgage Loan Trust<br>4.709%, 1M LIBOR + 0.320%, 01/25/35 (b) | 259340 |  | 228767 |
|  New Residential Mortgage Loan Trust<br>3.500%, 12/25/57 (144A) (b) | 2860000 |  | 2291570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/25/58 (144A) (b) | 2974932 |  | 2680038 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.750%, 11/25/58 (144A) (b) | 3780406 |  | 3495805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 09/25/56 (144A) (b) | 5619181 |  | 5152028 |
|  NovaStar Mortgage Funding Trust<br>0.412%, 1M LIBOR + 0.380%, 09/25/46 (b) | 227416 |  | 214635 |
|  Prime Mortgage Trust<br>5.500%, 05/25/35 (144A) | 47695 |  | 47425 |
|  RBSGC Mortgage Loan Trust<br>4.839%, 1M LIBOR + 0.450%, 01/25/37 (b) | 351056 |  | 122528 |
|  Residential Accredit Loans, Inc. Trust<br>3.483%, 11/25/37 (b) | 1861514 |  | 1504762 |
|  Residential Asset Securitization Trust<br>5.750%, 02/25/36 | 789682 |  | 716840 |
|  Seasoned Credit Risk Transfer Trust<br>4.000%, 07/25/56 (b) | 3334987 |  | 3274359 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 05/25/60 (144A) (b) | 4710000 |  | 4022473 |
|  Sequoia Mortgage Trust<br>3.723%, 07/25/45 (144A) (b) | 4603 |  | 4264 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.802%, 6M LIBOR + 0.680%, 06/20/33 (b) | 42754 |  | 40026 |
|  Structured Adjustable Rate Mortgage Loan Trust<br>3.637%, 09/25/35 (b) | 318835 |  | 232912 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.009%, 01/25/35 (b) | 120453 |  | 113691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.620%, 1M LIBOR + 1.500%, 09/25/37 (b) | 1996232 |  | 1778153 |
|  Structured Asset Mortgage Investments Trust<br>4.809%, 1M LIBOR + 0.420%, 05/25/46 (b) | 101555 |  | 64373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.949%, 1M LIBOR + 0.560%, 02/25/36 (b) | 1340239 |  | 1030081 |
|  Towd Point Mortgage Trust<br>3.461%, 06/25/57 (144A) (b) | 2900000 |  | 2176502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.639%, 1M LIBOR + 2.250%, 05/25/58 (144A) (b) | 1220000 |  | 1135942 |
|  Verus Securitization Trust<br>4.910%, 06/25/67 (144A) (d) | 3323384 |  | 3131738 |
|  WaMu Mortgage Pass-Through Certificates Trust<br>2.291%, -1x 1M LIBOR + 6.680%, 04/25/37 (b) (j) | 7014175 |  | 1122629 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.846%, 12M MTA + 0.798%, 03/25/47 (b) | 804739 |  | 686237 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.104%, 09/25/36 (b) | 254509 |  | 219686 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.159%, 08/25/33 (b) | 451214 |  | 426144 |
| **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** | **Collateralized Mortgage Obligations—(Continued)** |
| WaMu Mortgage Pass-Through Certificates Trust | WaMu Mortgage Pass-Through Certificates Trust | WaMu Mortgage Pass-Through Certificates Trust | WaMu Mortgage Pass-Through Certificates Trust |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.929%, 1M LIBOR + 0.540%, 12/25/45 (b) | 170933 |  | 157787 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.349%, 1M LIBOR + 0.960%, 12/25/45 (b) | 5614516 |  | 3547003 |
|  |  |  | 119218532 |
| **Commercial Mortgage-Backed Securities—3.7%** | **Commercial Mortgage-Backed Securities—3.7%** | **Commercial Mortgage-Backed Securities—3.7%** | **Commercial Mortgage-Backed Securities—3.7%** |
|  BAMLL Re-REMIC Trust<br>5.621%, 08/10/45 (144A) (b) | 5674181 |  | 1426283 |
|  BFLD Trust<br>8.518%, 1M LIBOR + 4.200%, 10/15/35 (144A) (b) | 2960000 |  | 2348793 |
|  BX Commercial Mortgage Trust<br>3.549%, 03/11/44 (144A) (b) | 9066697 |  | 6639727 |
|  CFK Trust<br>3.458%, 03/15/39 (144A) (b) | 4800000 |  | 3869072 |
|  Credit Suisse Commercial Mortgage Trust<br>11.668%, 1M LIBOR + 7.350%, 07/15/32 (144A) (b) | 10905000 |  | 9834521 |
|  Credit Suisse Mortgage Capital Certificates<br>6.968%, 1M LIBOR + 2.650%, 05/15/36 (144A) (b) | 10620000 |  | 10148457 |
|  Credit Suisse Mortgage Capital LLC<br>4.373%, 09/15/37 (144A) | 6620000 |  | 3669481 |
|  Credit Suisse Mortgage Trust<br>3.160%, 12/15/41 (144A) | 7420000 |  | 6037299 |
| &nbsp;&nbsp;&nbsp;&nbsp; 11.318%, 1M LIBOR + 7.000%, 12/15/22 (144A) (b) | 18296493 |  | 18249034 |
|  GS Mortgage Securities Corp. II<br>6.318%, 1M LIBOR + 2.000%, 05/15/26 (144A) (b) | 1540000 |  | 1353483 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.818%, 1M LIBOR + 2.500%, 05/15/26 (144A) (b) | 1540000 |  | 1304163 |
|  JPMorgan Chase Commercial Mortgage Securities Trust<br>6.514%, 02/15/51 (b) | 88158 |  | 78108 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.583%, 1M LIBOR + 4.265%, 11/15/38 (144A) (b) | 3760000 |  | 3403263 |
|  MHC Trust<br>6.268%, 1M LIBOR + 1.950%, 05/15/38 (144A) (b) | 5620000 |  | 5278076 |
|  ML-CFC Commercial Mortgage Trust<br>5.450%, 08/12/48 (b) | 188488 |  | 46298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.450%, 08/12/48 (144A) (b) | 21567 |  | 5297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.193%, 09/12/49 (b) | 40288 |  | 39488 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.222%, 09/12/49 (b) | 56011 |  | 54893 |
|  Multifamily Trust<br>1.983%, 04/25/46 (144A) (b) | 2395801 |  | 2395801 |
|  SMR Mortgage Trust<br>10.336%, 1M TSFR + 6.000%, 02/15/39 (144A) (b) | 2864834 |  | 2640787 |
|  Soho Trust<br>2.697%, 08/10/38 (144A) (b) | 3330000 |  | 2234286 |
|  Waikiki Beach Hotel Trust<br>6.348%, 1M LIBOR + 2.030%, 12/15/33 (144A) (b) | 1860000 |  | 1751259 |
|  Waterfall Commercial Mortgage Trust<br>4.104%, 09/14/22 (144A)† | 280770 |  | 275337 |
|  |  |  | 83083206 |
|  Total Mortgage-Backed Securities <br>(Cost $225,138,731) |  |  | 202301738 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—8.7%** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Asset-Backed - Automobile—0.3%** | **Asset-Backed - Automobile—0.3%** | **Asset-Backed - Automobile—0.3%** |
|  Avis Budget Rental Car Funding AESOP LLC<br>3.710%, 08/20/27 (144A) | 7750000 | $6356172 |
| **Asset-Backed - Home Equity—0.2%** |  |  |
|  Bear Stearns Asset-Backed Securities Trust<br>5.129%, 1M LIBOR + 0.740%, 01/25/34 (b) | 8770 | 8191 |
|  WaMu Asset-Backed Certificates Trust<br>4.559%, 1M LIBOR + 0.170%, 07/25/47 (b) | 6963803 | 4950709 |
|  |  | 4958900 |
| **Asset-Backed - Manufactured Housing—0.1%** | **Asset-Backed - Manufactured Housing—0.1%** | **Asset-Backed - Manufactured Housing—0.1%** |
|  Origen Manufactured Housing Contract Trust<br>5.400%, 10/15/37 (b) | 392480 | 355753 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.258%, 04/15/37 (b) | 402566 | 369755 |
|  UCFC Manufactured Housing Contract<br>7.095%, 04/15/29 (b) | 1254809 | 1067569 |
|  |  | 1793077 |
| **Asset-Backed - Other—7.3%** | **Asset-Backed - Other—7.3%** | **Asset-Backed - Other—7.3%** |
|  American Money Management Corp. CLO, Ltd.<br>9.889%, 3M LIBOR + 5.810%, 04/17/29 (144A) (b) | 6300000 | 5958238 |
|  Apidos CLO<br>10.993%, 3M LIBOR + 6.750%, 04/20/31 (144A) (b) | 5490000 | 4851497 |
|  Applebee's Funding LLC / IHOP Funding LLC<br>4.194%, 06/05/49 (144A) | 2970000 | 2918286 |
|  Barings CLO, Ltd.<br>9.923%, 3M LIBOR + 5.680%, 01/20/32 (144A) (b) | 5740000 | 5041373 |
|  Bear Stearns Asset-Backed Securities Trust<br>6.000%, 10/25/36 | 1107248 | 597141 |
|  Benefit Street Partners CLO IV, Ltd.<br>7.843%, 3M LIBOR + 3.600%, 01/20/32 (144A) (b) | 3120000 | 2857330 |
|  Canyon Capital CLO, Ltd.<br>10.489%, 3M LIBOR + 6.410%, 04/15/34 (144A) (b) | 750000 | 662611 |
|  Carlyle Global Market Strategies, CLO Ltd.<br>5.656%, 3M LIBOR + 1.050%, 05/15/31 (144A) (b) | 9007081 | 8852519 |
|  Carlyle U.S. CLO, Ltd.<br>7.943%, 3M LIBOR + 3.700%, 07/20/31 (144A) (b) | 8500000 | 7277317 |
|  Cathedral Lake VI, Ltd.<br>11.568%, 3M LIBOR + 7.210%, 04/25/34 (144A) (b) | 2650000 | 2277389 |
|  Catskill Park CLO, Ltd.<br>10.243%, 3M LIBOR + 6.000%, 04/20/29 (144A) (b) | 7600000 | 6449185 |
|  Cook Park CLO, Ltd.<br>9.479%, 3M LIBOR + 5.400%, 04/17/30 (144A) (b) | 750000 | 588229 |
|  CVP CLO, Ltd.<br>6.893%, 3M LIBOR + 2.650%, 01/20/31 (144A) (b) | 4000000 | 3564160 |
|  CWHEQ Revolving Home Equity Loan Resecuritization Trust<br>4.618%, 1M LIBOR + 0.300%, 12/15/33 (144A) (b) | 26097 | 26012 |
|  Dividend Solar Loans LLC<br>3.670%, 08/22/39 (144A) | 2883541 | 2612171 |
|  Dryden 75 CLO, Ltd.<br>10.679%, 3M LIBOR + 6.600%, 04/15/34 (144A) (b) | 7200000 | 6334704 |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Dryden Senior Loan Fund<br>10.643%, 3M LIBOR + 6.400%, 04/20/34 (144A) (b) | 2790000 | 2414871 |
|  FNA VI LLC<br>1.350%, 01/10/32 (144A) | 950696 | 864653 |
|  Fortress Credit BSL XII, Ltd.<br>11.209%, 3M LIBOR + 7.130%, 10/15/34 (144A) (b) | 2250000 | 1962747 |
|  Golub Capital Partners CLO 53B, Ltd.<br>10.943%, 3M LIBOR + 6.700%, 07/20/34 (144A) (b) | 3640000 | 3188283 |
|  Greenwood Park CLO, Ltd.<br>9.029%, 3M LIBOR + 4.950%, 04/15/31 (144A) (b) | 7380000 | 6074323 |
|  Greywolf CLO IV, Ltd.<br>7.774%, 3M TSFR + 3.910%, 04/17/34 (144A) (b) | 4090000 | 3698976 |
|  HalseyPoint CLO, Ltd.<br>12.443%, 3M LIBOR + 8.200%, 01/20/33 (144A) (b) | 2770000 | 2278660 |
|  LCM, Ltd.<br>9.743%, 3M LIBOR + 5.500%, 10/20/28 (144A) (b) | 3850000 | 2994361 |
|  Long Beach Mortgage Loan Trust<br>4.874%, 1M LIBOR + 0.520%, 01/21/31 (b) | 4699 | 4610 |
|  Marathon CLO 14, Ltd.<br>7.543%, 3M LIBOR + 3.300%, 01/20/33 (144A) (b) | 2950000 | 2745117 |
|  Midocean Credit CLO VII<br>7.959%, 3M LIBOR + 3.880%, 07/15/29 (144A) (b) | 4000000 | 3383244 |
|  Neuberger Berman Loan Advisers CLO 44, Ltd.<br>10.079%, 3M LIBOR + 6.000%, 10/16/34 (144A) (b) | 3560000 | 3132861 |
|  Oaktree CLO, Ltd.<br>8.125%, 3M LIBOR + 3.800%, 04/22/30 (144A) (b) | 5300000 | 4534569 |
|  Ocean Trails CLO X<br>11.649%, 3M LIBOR + 7.570%, 10/15/34 (144A) (b) | 5290000 | 4718654 |
|  Palmer Square Loan Funding, Ltd.<br>9.405%, 3M TSFR + 5.400%, 04/15/31 (144A) (b) | 5270000 | 5101987 |
|  Peace Park CLO, Ltd.<br>10.243%, 3M LIBOR + 6.000%, 10/20/34 (144A) (b) | 2580000 | 2257810 |
|  RR 18, Ltd.<br>10.329%, 3M LIBOR + 6.250%, 10/15/34 (144A) (b) | 7070000 | 6321273 |
|  Saranac CLO III, Ltd.<br>8.003%, 3M LIBOR + 3.250%, 06/22/30 (144A) (b) | 4652501 | 4001230 |
|  Sculptor CLO XXVI, Ltd.<br>11.493%, 3M LIBOR + 7.250%, 07/20/34 (144A) (b) | 4370000 | 3831188 |
|  Structured Asset Securities Corp. Mortgage Loan Trust<br>4.609%, 1M LIBOR + 0.220%, 02/25/36 (144A) (b) | 2545389 | 63034 |
|  Symphony CLO, Ltd.<br>5.039%, 3M LIBOR + 0.960%, 04/16/31 (144A) (b) | 2250000 | 2212868 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.546%, 3M TSFR + 2.300%, 10/20/34† (144A) (b) | 5060000 | 5080766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.279%, 3M LIBOR + 5.200%, 04/16/31 (144A) (b) | 1890000 | 1544829 |
|  TCI-Symphony CLO, Ltd.<br>7.041%, 3M LIBOR + 3.100%, 10/13/32 (144A) (b) | 1720000 | 1525585 |
| &nbsp;&nbsp;&nbsp;&nbsp; 10.691%, 3M LIBOR + 6.750%, 10/13/32 (144A) (b) | 7640000 | 6235218 |

---

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Asset-Backed Securities—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** | **Value** |
| **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** | **Asset-Backed - Other—(Continued)** |
|  Thrust Engine Leasing Trust<br>4.163%, 07/15/40 (144A) | 1514702 | $| 1112563 |
|  TSTAT, Ltd.<br>9.313%, 3M TSFR + 4.800%, 01/20/31 (144A) (b) | 3550000 |  | 3551928 |
|  Venture CLO, Ltd.<br>9.819%, 3M LIBOR + 5.740%, 04/15/27 (144A) (b) | 4000000 |  | 2781804 |
|  Voya CLO, Ltd.<br>10.099%, 3M LIBOR + 6.020%, 06/07/30 (144A) (b) | 3100000 |  | 2619794 |
| &nbsp;&nbsp;&nbsp;&nbsp; 11.193%, 3M LIBOR + 6.950%, 04/20/34 (144A) (b) | 2360000 |  | 2102668 |
|  WhiteHorse, Ltd.<br>7.729%, 3M LIBOR + 3.650%, 10/15/31 (144A) (b) | 6180000 |  | 5707520 |
|  Z Capital Credit Partners CLO, Ltd.<br>8.279%, 3M LIBOR + 4.200%, 07/15/33 (144A) (b) | 4290000 |  | 3988259 |
|  |  |  | 162904415 |
| **Asset-Backed - Student Loan—0.8%** | **Asset-Backed - Student Loan—0.8%** | **Asset-Backed - Student Loan—0.8%** | **Asset-Backed - Student Loan—0.8%** |
|  Education Funding LLC<br>4.708%, 3M LIBOR + 0.350%, 04/25/33 (144A) (b) | 3240014 |  | 2372688 |
|  National Collegiate Student Loan Trust<br>4.679%, 1M LIBOR + 0.290%, 01/25/33 (b) | 2584633 |  | 2396441 |
|  Navient Private Education Refi Loan Trust<br>2.500%, 09/16/69 (144A) | 4470000 |  | 3355615 |
|  SMB Private Education Loan Trust<br>1.590%, 01/15/53 (144A) | 3937501 |  | 3439079 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.860%, 01/15/53 (144A) | 6240000 |  | 5604464 |
|  |  |  | 17168287 |
|  Total Asset-Backed Securities <br>(Cost $216,469,215) |  |  | 193180851 |
| **U.S. Treasury & Government Agencies—8.2%** | **U.S. Treasury & Government Agencies—8.2%** | **U.S. Treasury & Government Agencies—8.2%** | **U.S. Treasury & Government Agencies—8.2%** |
| **Agency Sponsored Mortgage - Backed—8.2%** | **Agency Sponsored Mortgage - Backed—8.2%** | **Agency Sponsored Mortgage - Backed—8.2%** | **Agency Sponsored Mortgage - Backed—8.2%** |
|  Connecticut Avenue Securities Trust (CMO)<br>6.489%, 1M LIBOR + 2.100%, 10/25/39 (144A) (b) | 469820 |  | 468648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.028%, SOFR30A + 3.100%, 10/25/41 (144A) (b) | 6140000 |  | 5770749 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.789%, 1M LIBOR + 3.400%, 10/25/39 (144A) (b) | 11030000 |  | 10677194 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.489%, 1M LIBOR + 4.100%, 07/25/39 (144A) (b) | 1658728 |  | 1679960 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.739%, 1M LIBOR + 4.350%, 04/25/31 (144A) (b) | 5000000 |  | 5080595 |
|  Fannie Mae 15 Yr. Pool<br>2.000%, 07/01/36 | 4391184 |  | 3916511 |
|  Fannie Mae 20 Yr. Pool<br>2.000%, 08/01/41 | 4411139 |  | 3718352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/41 | 2506704 |  | 2198352 |
| Fannie Mae 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/01/51 | 13232760 |  | 10872875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 2692477 |  | 2222282 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/51 | 8281647 |  | 7039342 |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Fannie Mae 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 359895 |  | 309508 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 1586280 |  | 1357060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 5234016 |  | 4462206 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/51 | 15312659 |  | 13444682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/45 | 17740924 |  | 16504153 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/01/52 | 4394329 |  | 4126652 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/48 | 1150794 |  | 1130258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/49 | 45006 |  | 44073 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/49 | 25298 |  | 24797 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 05/01/26 | 292 |  | 292 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 07/01/30 | 179 |  | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 07/01/31 | 893 |  | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 09/01/31 | 799 |  | 801 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 10/01/31 | 917 |  | 914 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 11/01/31 | 13399 |  | 13516 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 01/01/32 | 4285 |  | 4283 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 01/01/30 | 195 |  | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 02/01/30 | 212 |  | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 06/01/30 | 27 |  | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 08/01/30 | 54 |  | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 09/01/30 | 267 |  | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 10/01/30 | 8 |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 11/01/30 | 7017 |  | 7052 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 02/01/31 | 564 |  | 562 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 08/01/27 | 70 |  | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 07/01/30 | 192 |  | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 09/01/30 | 288 |  | 290 |
|  Fannie Mae Connecticut Avenue Securities (CMO)<br>7.939%, 1M LIBOR + 3.550%, 07/25/30 (b) | 6050000 |  | 6155764 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.639%, 1M LIBOR + 4.250%, 01/25/31 (b) | 3230000 |  | 3334606 |
|  Fannie Mae Pool<br>4.500%, 08/01/58 | 79397 |  | 77161 |
|  Fannie Mae REMICS (CMO)<br>4.500%, 06/25/29 | 37068 |  | 36466 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.739%, 1M LIBOR + 0.350%, 05/25/34 (b) | 38416 |  | 37790 |
|  Freddie Mac 20 Yr. Pool<br>3.000%, 06/01/35 | 2733075 |  | 2535452 |
|  Freddie Mac 30 Yr. Gold Pool<br>7.000%, 03/01/39 | 36798 |  | 39526 |
|  Freddie Mac 30 Yr. Pool<br>2.000%, 09/01/51 | 10640362 |  | 8693478 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/49 | 6176062 |  | 5895773 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/47 | 1723694 |  | 1689181 |
|  Freddie Mac STACR REMIC Trust (CMO)<br>6.689%, 1M LIBOR + 2.300%, 01/25/50 (144A) (b) | 2210000 |  | 2083907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.928%, SOFR30A + 3.000%, 12/25/50 (144A) (b) | 8290000 |  | 7773802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.978%, SOFR30A + 3.050%, 01/25/34 (144A) (b) | 4240000 |  | 3872260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.089%, 1M LIBOR + 3.700%, 12/25/30 (144A) (b) | 4580000 |  | 4587117 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.839%, 1M LIBOR + 4.450%, 03/25/30 (b) | 8840000 |  | 9302437 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.889%, 1M LIBOR + 4.500%, 02/25/24 (b) | 1268878 |  | 1280639 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.489%, 1M LIBOR + 5.100%, 06/25/50 (144A) (b) | 4647917 |  | 4842313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.539%, 1M LIBOR + 5.150%, 10/25/29 (b) | 8310000 |  | 8928641 |
| Ginnie Mae I 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 01/15/34 | 17839 |  | 18680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/15/34 | 5016 |  | 5248 |

---

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **<br>Principal<br>Amount\*** | **Value** | **Value** |
| **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** | **Agency Sponsored Mortgage - Backed—(Continued)** |
| Ginnie Mae I 30 Yr. Pool |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/15/34 | 28424 | $| 29763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 10/15/34 | 29533 |  | 30167 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.750%, 10/15/38 | 23631 |  | 24268 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/15/33 | 637 |  | 672 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/15/33 | 1991 |  | 2076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/15/33 | 1263 |  | 1316 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/15/33 | 2781 |  | 2880 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/15/33 | 1062 |  | 1089 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/15/33 | 1438 |  | 1487 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 03/15/29 | 420 |  | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 02/15/32 | 293 |  | 304 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 03/15/32 | 251 |  | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 11/15/32 | 549 |  | 566 |
|  Ginnie Mae II 30 Yr. Pool<br>2.000%, 07/20/51 | 2591246 |  | 2171883 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/20/51 | 2913285 |  | 2536033 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/20/51 | 324072 |  | 273401 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/20/50 | 2809776 |  | 2605182 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/20/50 | 1131061 |  | 1097563 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/20/50 | 186099 |  | 182716 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/20/34 | 2881 |  | 2977 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/20/32 | 3728 |  | 3889 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/20/33 | 4593 |  | 4809 |
|  Government National Mortgage Association<br>Zero Coupon, 04/16/52 (b) (j) | 2012359 |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.079%, 03/16/47 (b) (j) | 1634802 |  | 2411 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.601%, 07/16/58 (b) (j) | 1050785 |  | 30367 |
|  Government National Mortgage Association (CMO)<br>3.000%, 04/20/41 | 25794 |  | 25556 |
|  Multifamily Connecticut Avenue Securities Trust<br>7.639%, 1M LIBOR + 3.250%, 10/25/49 (144A) (b) | 2678434 |  | 2514741 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.139%, 1M LIBOR + 3.750%, 03/25/50 (144A) (b) | 3930000 |  | 3629527 |
|  Total U.S. Treasury & Government Agencies <br>(Cost $198,290,701) |  |  | 181444687 |
| **Foreign Government—3.1%** | **Foreign Government—3.1%** | **Foreign Government—3.1%** | **Foreign Government—3.1%** |
| **Municipal—0.2%** | **Municipal—0.2%** | **Municipal—0.2%** | **Municipal—0.2%** |
|  Ciudad Autonoma De Buenos Aires<br>7.500%, 06/01/27 | 3520000 |  | 3247200 |
| **Regional Government—0.5%** |  |  |  |
|  Provincia de Buenos Aires<br>5.250%, 09/01/37 (144A) (d) | 24455990 |  | 8437316 |
|  Provincia de Cordoba<br>6.990%, 06/01/27 (144A) (d) | 5515415 |  | 3640174 |
|  |  |  | 12077490 |
| **Sovereign—2.4%** |  |  |  |
|  Angolan Government International Bond<br>8.750%, 04/14/32 (144A) | 1520000 |  | 1313736 |
|  Bahamas Government International Bond<br>5.750%, 01/16/24 (144A) | 2570000 |  | 2466786 |
| **Sovereign—(Continued)** |  |  |  |
|  Brazilian Government International Bond<br>6.000%, 04/07/26 (a) | 2970000 |  | 3066889 |
|  Bundesrepublik Deutschland Bundesanleihe<br>Zero Coupon, 08/15/26 (EUR) | 3430000 |  | 3361447 |
|  Dominican Republic International Bonds<br>5.500%, 02/22/29 (144A) | 2100000 |  | 1932233 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/22/33 (144A) | 3800000 |  | 3427798 |
|  Gabon Government International Bond<br>7.000%, 11/24/31 (144A) | 2600000 |  | 2125812 |
|  Indonesia Treasury Bonds<br>6.500%, 02/15/31 (IDR) | 9599000000 |  | 598415 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 05/15/27 (IDR) | 223092000000 |  | 14672028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.375%, 09/15/26 (IDR) | 66608000000 |  | 4570224 |
|  Ivory Coast Government International Bond<br>4.875%, 01/30/32 (144A) (EUR) | 1630000 |  | 1373497 |
|  Jordan Government International Bond<br>7.750%, 01/15/28 (144A) (a) | 5480000 |  | 5536006 |
|  Mexico Government International Bond<br>4.125%, 01/21/26 (a) | 4280000 |  | 4173104 |
|  Panama Government International Bond<br>4.500%, 04/01/56 | 2700000 |  | 1967072 |
|  Peruvian Government International Bond<br>2.783%, 01/23/31 (a) | 2530000 |  | 2092891 |
|  |  |  | 52677938 |
|  Total Foreign Government <br>(Cost $80,468,496) |  |  | 68002628 |
| **Convertible Preferred Stocks—0.9%** | **Convertible Preferred Stocks—0.9%** | **Convertible Preferred Stocks—0.9%** | **Convertible Preferred Stocks—0.9%** |
| **Banks—0.3%** | **Banks—0.3%** | **Banks—0.3%** | **Banks—0.3%** |
|  Wells Fargo & Co., Series L <br>7.500%, | 4965 |  | 5883525 |
| **Capital Markets—0.1%** |  |  |  |
|  B Riley Financial, Inc.<br>5.250%, 08/31/28 | 68700 |  | 1253088 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 03/31/26 | 76800 |  | 1712640 |
|  |  |  | 2965728 |
| **Pipelines—0.5%** |  |  |  |
|  MPLX L.P.<br>8.462% (d) | 329615 |  | 11866140 |
|  Total Convertible Preferred Stocks <br>(Cost $19,948,279) |  |  | 20715393 |
| **Convertible Bonds—0.6%** | **Convertible Bonds—0.6%** | **Convertible Bonds—0.6%** | **Convertible Bonds—0.6%** |
| **Airlines—0.0%** | **Airlines—0.0%** | **Airlines—0.0%** | **Airlines—0.0%** |
|  Spirit Airlines, Inc.<br>1.000%, 05/15/26 | 43000 |  | 34615 |

---

*See accompanying notes to financial statements.* 

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Convertible Bonds—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares/**<br> **Principal<br>Amount\*** | **Value** |
| **Entertainment—0.2%** | | |
|  DraftKings, Inc.<br>Zero Coupon, 03/15/28 | 6710000 | $4150135 |
| **Leisure Time—0.0%** |  |  |
|  Liberty TripAdvisor Holdings, Inc.<br>0.500%, 06/30/51 | 740000 | 530580 |
| **Media—0.2%** |  |  |
|  Dish Network Corp.<br>3.375%, 08/15/26 | 7320000 | 4585980 |
| **Real Estate Investment Trusts—0.2%** |  |  |
|  Apollo Commercial Real Estate Finance, Inc.<br>5.375%, 10/15/23 | 3210000 | 3121725 |
|  Total Convertible Bonds <br>(Cost $16,354,119) |  | 12423035 |
| **Common Stocks—0.1%** | **Common Stocks—0.1%** | **Common Stocks—0.1%** |
| **Auto Components—0.0%** | **Auto Components—0.0%** | **Auto Components—0.0%** |
|  Lear Corp. | 399 | 49484 |
| **Chemicals—0.0%** |  |  |
|  LyondellBasell Industries NV - Class A | 23 | 1915 |
| **Media—0.0%** |  |  |
|  Cengage Learning, Inc. (k) | 10995 | 123012 |
| **Oil, Gas & Consumable Fuels—0.1%** |  |  |
|  Ascent CNR Corp. - Class A (k) | 1399556 | 27991 |
|  Berry Corp. (a) (k) | 170615 | 1364920 |
|  |  | 1392911 |
|  Total Common Stocks <br>(Cost $2,222,896) |  | 1567322 |
| **Municipals—0.0%** |  |  |
|  Virginia Housing Development Authority<br>6.000%, 06/25/34 <br>(Cost $305,808) | 308942 | 307476 |
| **Escrow Shares—0.0%** | **Escrow Shares—0.0%** | **Escrow Shares—0.0%** |
| **Forest Products & Paper—0.0%** |  |  |
|  Sino-Forest Corp. (e) (f) (k) | 1246000 | 0 |
|  Sino-Forest Corp. (e) (f) (k) | 500000 | 0 |
|  Total Escrow Shares <br>(Cost $0) |  | 0 |
| **Short-Term Investment—1.3%** | **Short-Term Investment—1.3%** | **Short-Term Investment—1.3%** |
| **Security Description** | **<br>Principal<br>Amount\*** | **Value** |
| **Repurchase Agreement—1.3%** | **Repurchase Agreement—1.3%** | **Repurchase Agreement—1.3%** |
|  Fixed Income Clearing Corp. <br>Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $27,807,937; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $28,358,492. | 27802376 | $27802376 |
|  Total Short-Term Investments <br>(Cost $27,802,376) |  | 27802376 |
| **Securities Lending Reinvestments (l)—15.2%** | **Securities Lending Reinvestments (l)—15.2%** | **Securities Lending Reinvestments (l)—15.2%** |
| **Certificates of Deposit—7.7%** | **Certificates of Deposit—7.7%** | **Certificates of Deposit—7.7%** |
|  Bank of Montreal<br>4.710%, SOFR + 0.410%, 04/04/23 (b) | 4000000 | 3999938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.090%, SOFR + 0.790%, 11/08/23 (b) | 2000000 | 2002702 |
|  Bank of Montreal (Chicago)<br>4.790%, FEDEFF PRV + 0.460%, 03/02/23 (b) | 5000000 | 5000000 |
|  Bank of Nova Scotia<br>4.550%, SOFR + 0.250%, 02/17/23 (b) | 5000000 | 4999774 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.770%, FEDEFF PRV + 0.440%, 01/09/23 (b) | 2000000 | 2000081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 03/15/23 (b) | 5000000 | 5002101 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.980%, SOFR + 0.680%, 08/16/23 (b) | 2000000 | 2002338 |
|  Barclays Bank plc<br>4.670%, SOFR + 0.370%, 03/21/23 (b) | 5000000 | 4999990 |
|  BNP Paribas S.A.<br>4.810%, SOFR + 0.510%, 03/15/23 (b) | 5000000 | 5001740 |
|  Canadian Imperial Bank of Commerce (NY)<br>4.550%, SOFR + 0.250%, 02/03/23 (b) | 10000000 | 10000662 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.800%, SOFR + 0.500%, 03/03/23 (b) | 12000000 | 12004593 |
|  Citibank N.A.<br>4.680%, SOFR + 0.380%, 03/27/23 (b) | 6000000 | 6000426 |
|  Commonwealth Bank of Australia<br>4.680%, SOFR + 0.380%, 03/30/23 (b) | 1000000 | 1000074 |
|  Credit Agricole S.A.<br>4.800%, 02/22/23 | 5000000 | 5001800 |
|  Credit Industriel et Commercial<br>4.730%, SOFR + 0.430%, 01/06/23 (b) | 4000000 | 4000112 |
|  Credit Industriel et Commercial (NY)<br>4.710%, FEDEFF PRV + 0.380%, 01/09/23 (b) | 5000000 | 5000145 |
|  Mitsubishi UFJ Trust and Banking Corp.<br>4.860%, SOFR + 0.560%, 02/14/23 (b) | 6000000 | 6001800 |
|  Mizuho Bank, Ltd.<br>4.850%, SOFR + 0.550%, 01/26/23(b) | 2000000 | 2000601 |
|  MUFG Bank Ltd. (NY)<br>4.700%, SOFR + 0.400%, 04/13/23 (b) | 2000000 | 2000180 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.810%, SOFR + 0.510%, 02/17/23 (b) | 5000000 | 5001270 |
|  Natixis S.A.<br>4.750%, SOFR + 0.450%, 06/21/23 (b) | 2000000 | 2000648 |
|  Natixis S.A. (New York)<br>4.800%, SOFR + 0.500%, 02/13/23 (b) | 2000000 | 2000789 |
|  Nordea Bank Abp (NY)<br>4.760%, SOFR + 0.460%, 02/13/23 (b) | 4000000 | 4000684 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/21/23 (b) | 5000000 | 5001675 |

---

*See accompanying notes to financial statements.* 

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (l)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** | **Certificates of Deposit—(Continued)** |
|  Rabobank (London)<br>4.830%, SOFR + 0.530%, 05/16/23 (b) | 4000000 | $4000000 |
|  Royal Bank of Canada<br>4.550%, SOFR + 0.250%, 01/11/23 (b) | 6000000 | 5999904 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.890%, FEDEFF PRV + 0.560%, 04/10/23 (b) | 2000000 | 2001152 |
|  Standard Chartered Bank (NY)<br>4.860%, FEDEFF PRV + 0.530%, 01/17/23 (b) | 2000000 | 2000246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.040%, SOFR + 0.740%, 05/02/23 (b) | 4000000 | 4006071 |
|  State Street Bank and Trust Co.<br>4.980%, SOFR + 0.680%, 07/14/23 (b) | 2000000 | 2002354 |
|  Sumitomo Mitsui Banking Corp.<br>4.710%, SOFR + 0.410%, 03/06/23 (b) | 5000000 | 5000550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.050%, SOFR + 0.750%, 04/21/23 (b) | 7000000 | 7009478 |
|  Sumitomo Mitsui Trust Bank, Ltd.<br>Zero Coupon, 03/16/23 | 4000000 | 3960440 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.840%, SOFR + 0.540%, 01/10/23 (b) | 2000000 | 2000156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 03/07/23 (b) | 6000000 | 6001668 |
|  Svenska Handelsbanken AB<br>4.900%, SOFR + 0.600%, 04/12/23 (b) | 3000000 | 3002037 |
|  Toronto-Dominion Bank (The)<br>4.550%, SOFR + 0.250%, 02/09/23 (b) | 8000000 | 7999649 |
|  Westpac Banking Corp.<br>4.530%, SOFR + 0.230%, 02/17/23 (b) | 7000000 | 6999230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.850%, SOFR + 0.550%, 02/22/23 (b) | 2000000 | 2000682 |
|  |  | 170007740 |
| **Commercial Paper—0.5%** |  |  |
|  ING U.S. Funding LLC<br>5.020%, SOFR + 0.720%, 08/04/23 (b) | 4000000 | 4005448 |
|  Macquarie Bank Ltd.<br>4.880%, SOFR + 0.580%, 02/03/23 (b) | 5000000 | 5001350 |
|  Skandinaviska Enskilda Banken AB<br>4.980%, SOFR + 0.680%, 05/03/23 (b) | 2000000 | 2001976 |
|  |  | 11008774 |
| **Master Demand Notes—0.1%** |  |  |
|  Bank of America N.A.<br>4.880%, SOFR + 0.580%, 05/15/23 (b) | 3000000 | 2999966 |
| **Repurchase Agreements—6.0%** |  |  |
|  Barclays Capital, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $12,913,582; collateralized by U.S. Treasury Obligations with rate 0.000%, maturity dates ranging from 11/15/29 - 02/15/40, and an aggregate market value of $13,165,622. | 12907473 | 12907473 |
| Citigroup Global Markets, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.620%, due on 02/03/23 with a maturity value of $3,013,475; collateralized by U.S. Treasury Obligations with rates ranging from 1.250% - 3.375%, maturity dates ranging from 11/15/48 - 02/15/52, and an aggregate market value of $3,060,000. | 3000000 | 3000000 |
| **Repurchase Agreements —(Continued)** |  |  |
| Citigroup Global Markets, Inc. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.870%, due on 07/03/23 with a maturity value of $10,250,264; collateralized by U.S. Treasury Obligations with rates ranging from 0.125% - 4.250%, maturity dates ranging from 01/31/23 - 05/15/49, and an aggregate market value of $10,200,001. | 10000000 | 10000000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $2,000,960; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $2,047,738. | 2000000 | 2000000 |
|  National Bank of Canada<br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $20,417,136; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $20,856,515. | 20400000 | 20400000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.450%, due on 01/06/23 with a maturity value of $37,182,145; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 4.497%, maturity dates ranging from 03/02/23 - 05/15/52, and various Common Stock with an aggregate market value of $40,449,980. | 37150000 | 37150000 |
|  Royal Bank of Canada Toronto <br>Repurchase Agreement dated 12/30/22 at 4.650%, due on 02/03/23 with a maturity value of $15,067,813; collateralized by various Common Stock with an aggregate market value of $16,668,819. | 15000000 | 15000000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $2,000,944; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.495%, maturity dates ranging from 03/15/23 - 08/15/51, and an aggregate market value of $2,043,613. | 2000000 | 2000000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $13,206,468; collateralized by various Common Stock with an aggregate market value of $14,690,685. | 13200000 | 13200000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $10,659,153; collateralized by various Common Stock with an aggregate market value of $11,855,494. | 10650000 | 10650000 |
|  TD Prime Services LLC<br>Repurchase Agreement dated 12/30/22 at 4.400%, due on 01/03/23 with a maturity value of $8,003,911; collateralized by various Common Stock with an aggregate market value of $8,906,198. | 8000000 | 8000000 |
|  |  | 134307473 |

---

*See accompanying notes to financial statements.* 

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (l)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Time Deposit—0.9%** | | |
|  National Bank of Canada<br>4.370%, OBFR + 0.050%, 01/06/23 (b) | 20000000 | $20000000 |
|  Total Securities Lending Reinvestments <br>(Cost $338,269,592) |  | 338323953 |
|  Total Purchased Options—0.1% (m)<br>(Cost $5,574,227) |  | 3132256 |
|  Total Investments—111.3% <br>(Cost $2,747,327,991) |  | 2471372270 |
|  Unfunded Loan Commitments—(0.0)% <br>(Cost $(562362)) |  | (562362) |
|  Net Investments—111.3% <br>(Cost $2,746,765,629) |  | 2470809908 |
|  Other assets and liabilities (net) —(11.3)% |  | (250522681) |
| **Net Assets—100.0%** |  | $2220287227 |

---

---

| | |
|:---|:---|
| \* | Principal and notional amounts stated in U.S. dollars unless otherwise noted. |
| † | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of December 31, 2022, the market value of restricted securities was $13,407,540, which is 0.6% of net assets. See details shown in the Restricted Securities table that follows. |
| (a) | All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $369,704,347 and the collateral received consisted of cash in the amount of $338,260,372 and non-cash collateral with a value of $45,836,600. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities. |
| (b) | Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above. |
| (c) | Payment-in-kind security for which part of the income earned may be paid as additional principal. |
| (d) | Security is a "step-up" bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate. |
| (e) | Security was valued in good faith under procedures subject to oversight by the Board of Trustees. As of December 31, 2022, these securities represent 0.0% of net assets. |
| (f) | Significant unobservable inputs were used in the valuation of this portfolio security; i.e. Level 3. |
| (g) | Non-income producing; security is in default and/or issuer is in bankruptcy. |
| (h) | Floating rate loans ("Senior Loans") often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will generally have an expected average life of approximately two to four years. Senior Loans typically have rates of interest which are determined periodically by reference to a base lending rate, plus a spread. These base rates are primarily the London Interbank Offered Rate and secondarily, the prime rate offered by one or more major United States banks. Base lending rates may be subject to a floor, or a minimum rate. |
| (i) | Unfunded or partially unfunded loan commitments. The Portfolio may enter into certain credit agreements for which all or a portion may be unfunded. The Portfolio is obligated to fund these commitments at the borrower's discretion. |
| (j) | Interest only security. |
| (k) | Non-income producing security. |
| (l) | Represents investment of cash collateral received from securities on loan as of December 31, 2022. |
| (m) | For a breakout of open positions, see details shown in the Purchased Options table that follows. |
| (n) | This loan will settle after December 31, 2022, at which time the interest rate will be determined. |
| (144A) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $1,090,838,741, which is 49.1% of net assets. |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Restricted Securities** | **Acquisition<br>Date** | **Principal<br>Amount** | **Cost** | **Value** |
|  Countrywide Home Loan Reperforming Loan REMIC Trust, 2.207%, 03/25/35 | 01/08/15 | $2213580 | $322353 | $110308 |
|  Liberty Mutual Insurance Co., 7.697%, 10/15/97 | 06/08/11-05/30/12 | 2600000 | 2522524 | 2808118 |
|  Massachusetts Mutual Life Insurance Co., 4.900%, 04/01/77 | 03/20/17-03/21/17 | 6285000 | 6262795 | 5132926 |
|  Midwest Vanadium Pty, Ltd., 13.250%, 02/15/18 | 05/24/11 | 931574 | 960686 | 0 |
|  Northwest Acquisitions ULC / Dominion Finco, Inc., 7.125%, 11/01/22 | 10/06/17-11/21/19 | 8475000 | 8571525 | 85 |
|  Symphony CLO, Ltd., 6.546%, 10/20/34 | 11/17/22 | 5060000 | 5042290 | 5080766 |
|  Waterfall Commercial Mortgage Trust, 4.104%, 09/14/22 | 09/08/15-11/18/16 | 280770 | 279503 | 275337 |
|  |  |  |  | $13407540 |

---

*See accompanying notes to financial statements.* 

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Forward Foreign Currency Exchange Contracts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contracts to Buy** | **Contracts to Buy** | **Counterparty** | **Settlement<br>Date** | **In Exchange<br>for** | **In Exchange<br>for** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
| AUD | 16670000 | GSBU | 01/18/23 | USD | 10485680 | $870512 |
| AUD | 31725404 | MSCS | 01/18/23 | USD | 20494611 | 1117853 |
| AUD | 7328590 | JPMC | 02/21/23 | USD | 4968931 | 30315 |
| BRL | 30710000 | JPMC | 01/18/23 | USD | 5663335 | 137013 |
| CAD | 50494655 | MSCS | 01/18/23 | USD | 36976980 | 318679 |
| EUR | 5518000 | MSCS | 01/18/23 | USD | 5444302 | 468051 |
| GBP | 22469858 | MSCS | 01/18/23 | USD | 25043330 | 2131604 |
| JPY | 35880000 | GSBU | 01/18/23 | USD | 263063 | 10801 |
| JPY | 4675136649 | JPMC | 01/18/23 | USD | 32651593 | 3032729 |
| JPY | 401490000 | MSCS | 01/18/23 | USD | 2997817 | 66670 |
| JPY | 498970000 | MSCS | 01/18/23 | USD | 3720871 | 87661 |
| JPY | 746630000 | MSCS | 01/18/23 | USD | 5608171 | 90696 |
| MXN | 22529000 | BOA | 01/18/23 | USD | 1130662 | 22588 |
| MXN | 22270000 | JPMC | 01/18/23 | USD | 1107437 | 32555 |
| MXN | 70624000 | JPMC | 01/18/23 | USD | 3619326 | (4114) |
| MXN | 83960000 | MSCS | 01/18/23 | USD | 4213160 | 84717 |
| MXN | 103730000 | MSCS | 01/18/23 | USD | 5209886 | 100009 |
| MXN | 437216080 | MSCS | 01/18/23 | USD | 21513046 | 867862 |
| NOK | 335649450 | MSCS | 01/18/23 | USD | 31372919 | 2907785 |
| **Contracts to Deliver** | **Contracts to Deliver** | **Contracts to Deliver** | **Contracts to Deliver** | **Contracts to Deliver** | **Contracts to Deliver** | **Contracts to Deliver** |
| AUD | 10800000 | JPMC | 02/21/23 | USD | 7338708 | (28583) |
| BRL | 4066794 | JPMC | 01/18/23 | USD | 760717 | (7398) |
| CAD | 7308610 | MSCS | 01/18/23 | USD | 5323832 | (74352) |
| CAD | 4468400 | MSCS | 01/18/23 | USD | 3244625 | (55763) |
| CAD | 3020970 | MSCS | 01/18/23 | USD | 2204171 | (27136) |
| CNH | 36180400 | JPMC | 01/18/23 | USD | 5163053 | (70707) |
| CNH | 36050000 | JPMC | 01/18/23 | USD | 5183672 | (31224) |
| CNY | 19550000 | JPMC | 01/18/23 | USD | 2759935 | (55367) |
| CNY | 3940000 | JPMC | 01/18/23 | USD | 553643 | (13738) |
| CNY | 2140000 | JPMC | 01/18/23 | USD | 300267 | (7905) |
| CNY | 440000 | JPMC | 01/18/23 | USD | 62116 | (1246) |
| EUR | 26363974 | MSCS | 01/18/23 | USD | 26488940 | (1759178) |
| GBP | 43762930 | GSBU | 01/18/23 | USD | 50363474 | (2563196) |
| GBP | 8930000 | GSBU | 01/18/23 | USD | 10601937 | (197960) |
| GBP | 7110000 | GSBU | 01/18/23 | USD | 8136648 | (462150) |
| GBP | 4900000 | GSBU | 01/18/23 | USD | 5880392 | (45644) |
| GBP | 4870000 | GSBU | 01/18/23 | USD | 5839398 | (50356) |
| GBP | 4700000 | GSBU | 01/18/23 | USD | 5569589 | (114567) |
| GBP | 2605000 | GSBU | 01/18/23 | USD | 2883279 | (267195) |
| IDR | 161985690000 | JPMC | 01/18/23 | USD | 10618531 | 214633 |
| IDR | 95987724172 | JPMC | 01/18/23 | USD | 6280275 | 115246 |
| JPY | 1247782500 | GSBU | 01/18/23 | USD | 8574357 | (949700) |
| JPY | 805430000 | GSBU | 01/18/23 | USD | 6163211 | 15536 |
| JPY | 748550000 | GSBU | 01/18/23 | USD | 5734653 | 21131 |
| JPY | 208007500 | JPMC | 01/18/23 | USD | 1426749 | (160928) |
| MXN | 282233394 | BOA | 01/18/23 | USD | 13852626 | (594783) |
| MXN | 32444000 | BOA | 01/18/23 | USD | 1661792 | 997 |
| MXN | 21506000 | BOA | 01/18/23 | USD | 1060584 | (40299) |
| MXN | 183353394 | JPMC | 01/18/23 | USD | 8989366 | (396418) |
| MXN | 253945381 | MSCS | 03/08/23 | USD | 12638500 | (244985) |
| NOK | 21780000 | JPMC | 01/18/23 | USD | 2227853 | 3408 |
| NZD | 2981769 | JPMC | 01/18/23 | USD | 1693460 | (200009) |
|  Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | Net Unrealized Appreciation | $4324150 |

---

*See accompanying notes to financial statements.* 

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Value** | **Notional<br>Value** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  3 Month SOFR Futures | 09/19/23 | 17 | USD | 4039200 | $(64848) |
|  3 Month SOFR Futures | 03/18/25 | 448 | USD | 108259200 | 41597 |
|  90 Day Euro Dollar Futures | 12/18/23 | 3726 | USD | 886881150 | (20936325) |
|  Australian 10 Year Treasury Bond Futures | 03/15/23 | 202 | AUD | 23367653 | (915218) |
|  U.S. Treasury Long Bond Futures | 03/22/23 | 112 | USD | 14038500 | 49550 |
|  U.S. Treasury Note 10 Year Futures | 03/22/23 | 1821 | USD | 204492609 | (412058) |
|  U.S. Treasury Note 2 Year Futures | 03/31/23 | 2821 | USD | 578525393 | (115074) |
|  U.S. Treasury Note 5 Year Futures | 03/31/23 | 420 | USD | 45330469 | (48140) |
|  U.S. Treasury Note Ultra 10 Year Futures | 03/22/23 | 631 | USD | 74635469 | (109545) |
|  U.S. Treasury Ultra Long Bond Futures | 03/22/23 | 2134 | USD | 286622875 | (253236) |
|  United Kingdom Long Gilt Bond Futures | 03/29/23 | 205 | GBP | 20479500 | (1368390) |
| **Futures Contracts—Short** |  |  |  |  |  |
|  Euro-Buxl 30 Year Bond Futures | 03/08/23 | (25) | EUR | (3381000) | 670498 |
|  Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | $(23461189) |

---

**Purchased Options** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Foreign Currency Options** | **Strike<br>Price** | **Strike<br>Price** | **Counterparty** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Paid** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  USD Call/JPY Put | JPY | 133.800 | BOA | 03/02/23 | 49110000 | USD | 49110000 | $1226571 | $574440 | $(652131) |
|  USD Put/MXN Call | MXN | 19.644 | MSCS | 03/06/23 | 32200000 | USD | 32200000 | 431319 | 536645 | 105326 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $1657890 | $1111085 | $(546805) |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swaptions** | **Strike<br>Price** | **Counterparty** | **Underlying<br>Reference<br>Index** | **Buy/<br>Sell<br>Protection** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Paid** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - OTC - 1 Yr. CDS | $101.00 | GSC | CDX.NA.HY.39 | sell | 01/18/23 | 49900000 | USD | 49900000 | $471555 | $37238 | $(434317) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Options on Exchange-Traded Futures Contracts** | **Strike<br>Price** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Paid** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - Eurodollar Futures | USD | 99.000 | 12/18/23 | 48 | USD | 120000 | $11501 | $2700 | $(8801) |
|  Put - S&P 500 Index E-Mini Futures | USD | 3400.000 | 01/20/23 | 32 | USD | 1600 | 84467 | 4720 | (79747) |
|  Put - S&P 500 Index E-Mini Futures | USD | 3600.000 | 02/17/23 | 353 | USD | 17650 | 1481091 | 701587 | (779504) |
|  Put - S&P 500 Index E-Mini Futures | USD | 3700.000 | 02/17/23 | 87 | USD | 4350 | 306858 | 275138 | (31720) |
|  Put - S&P 500 Index E-Mini Futures | USD | 3400.000 | 02/17/23 | 117 | USD | 5850 | 440459 | 83363 | (357096) |
|  Put - S&P 500 Index E-Mini Futures | USD | 3500.000 | 03/17/23 | 242 | USD | 12100 | 704133 | 562650 | (141483) |
|  Put - S&P 500 Index E-Mini Futures | USD | 3600.000 | 03/17/23 | 106 | USD | 5300 | 416273 | 353775 | (62498) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $3444782 | $1983933 | $(1460849) |

---

**Written Options** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Foreign Currency Options** | **Strike<br>Price** | **Strike<br>Price** | **Counterparty** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Received** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  USD Put/AUD Call | USD | 0.697 | JPMC | 02/17/23 | (13500000) | USD | (13500000) | $(200205) | $(111537) | $88668 |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swaptions** | **Strike<br>Price** | **Counterparty** | **Underlying<br>Reference<br>Index** | **Buy/<br>Sell<br>Protection** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Received** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Call - OTC - 1 Yr. CDS | $103.00 | GSC | CDX.NA.HY.39 | Buy | 01/18/23 | (74850000) | USD | (74850000) | $(232035) | $(394966) | $(162931) |
|  Put - OTC - 1 Yr. CDS | $95.00 | GSC | CDX.NA.HY.39 | Sell | 01/18/23 | (49900000) | USD | (49900000) | (239520) | (263311) | (23791) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(471555) | $(658277) | $(186722) |

---

*See accompanying notes to financial statements.* 

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Written Options—(Continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Options on Exchange-Traded Futures Contracts** | **Strike<br>Price** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Premiums<br>Received** | **Market<br>Value** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Put - S&P 500 Index E-Mini Futures | USD | 3300.000 | 02/17/23 | (412) | USD | (20600) | $(662122) | $(180250) | $481872 |
|  Put - S&P 500 Index E-Mini Futures | USD | 3300.000 | 03/17/23 | (106) | USD | (5300) | (194553) | (111300) | 83253 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(856675) | $(291550) | $565125 |

---

**Swap Agreements** 

**Centrally Cleared Interest Rate Swaps** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Pay/Receive<br>Floating Rate** | **Floating<br>Rate Index** | **Payment <br>Frequency** | **Fixed<br>Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Notional<br>Amount** | **Notional<br>Amount** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Pay | 28-Day TIIE | Monthly | 7.440% | Monthly | 07/20/29 | MXN | 1162650000 | $(3858682) | $399380 | $(4258062) |
|  Pay | 28-Day TIIE | Monthly | 7.450% | Monthly | 07/18/29 | MXN | 1118490000 | (3682145) | 316892 | (3999037) |
|  Receive | SOFR | Annually | 2.510% | Annually | 02/15/48 | USD | 11792000 | 1550962 | 211074 | 1339888 |
|  Receive | SOFR | Annually | 2.620% | Annually | 02/15/48 | USD | 1497000 | 169281 | (286) | 169567 |
|  Receive | SOFR | Annually | 2.650% | Annually | 08/15/47 | USD | 29594000 | 3225769 | 336395 | 2889374 |
|  Receive | SOFR | Annually | 3.050% | Annually | 02/15/48 | USD | 10150000 | 415437 | 309682 | 105755 |
|  Receive | SOFR | Annually | 3.850% | Annually | 06/30/29 | USD | 34326000 | (475781) | 41688 | (517469) |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(2655159) | $1614825 | $(4269984) |

---

**Centrally Cleared Credit Default Swaps on Credit Indices and Corporate Issues—Buy Protection (a)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>(Pay) Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Implied<br>Credit Spread at<br>December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  CDX.NA.HY.39 | (5.000%) | Quarterly | 12/20/27 | 4.841% | USD | 33959100 | $(209120) | $1322159 | $(1531279) |
|  General Motors Co., 4.875%, due 10/02/23 | (5.000%) | Quarterly | 06/20/26 | 1.778% | USD | 13700000 | (1368740) | (1854128) | 485388 |
|  Totals | Totals | Totals | Totals | Totals | Totals | Totals | $(1577860) | $(531969) | $(1045891) |

---

**Centrally Cleared Credit Default Swaps on Corporate Issues—Sell Protection (d)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>Receive Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Implied<br>Credit Spread at<br>December 31,<br>2022<sup>(b)</sup>** | **Notional<br>Amount<sup>(c)</sup>** | **Notional<br>Amount<sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Ford Motor Co., 4.346%, due 12/08/26 | 5.000% | Quarterly | 06/20/26 | 3.197% | USD | 13700000 | $736211 | $1379503 | $(643292) |

---

**OTC Credit Default Swaps on Corporate Issues—Buy Protection (a)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>(Pay) Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread at<br>December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Daimler AG 1.400%, due 01/12/24 <br>| (1.000%) | Quarterly | 12/20/24 | MSCS | 0.489% | EUR | 11300000 | $(118743) | $(102612) | $(16131) |

---

**OTC Credit Default Swaps on Corporate—Sell Protection (d)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reference Obligation** | **Fixed Deal<br>Receive Rate** | **Payment <br>Frequency** | **Maturity<br>Date** | **Counterparty** | **Implied<br>Credit Spread at<br>December 31,<br>2022 <sup>(b)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Notional<br>Amount <sup>(c)</sup>** | **Market<br>Value** | **Upfront<br>Premium<br>Paid/(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Volkswagen International Finance NV<br>0.875%, due 01/16/23 | 1.000% | Quarterly | 12/20/24 | MSCS | 0.929% | EUR | 11300000 | $16321 | $53783 | $(37462) |

---

*See accompanying notes to financial statements.* 

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal
to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap
less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current
status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront
payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under
the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity or obligation.

(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would
be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt
obligation.

(d) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the
notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap
less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Securities in the amount of $1,724,445 have been received at the custodian bank as collateral for forward foreign currency exchange contracts, OTC swap contracts and OTC option contracts.

**Glossary of Abbreviations** 

Counterparties

------

---

| | |
|:---|:---|
| (BOA)— | Bank of America N.A. |
| (GSBU)— | Goldman Sachs Bank USA |
| (GSC)— | Goldman Sachs & Co. |
| (JPMC)— | JPMorgan Chase Bank N.A. |
| (MSCS)— | Morgan Stanley Capital Services LLC |

---

Currencies

------

---

| | |
|:---|:---|
| (AUD)— | Australian Dollar |
| (BRL)— | Brazilian Real |
| (CAD)— | Canadian Dollar |
| (CNH)— | Chinese Renminbi |
| (CNY)— | Chinese Yuan |
| (EUR)— | Euro |
| (GBP)— | British Pound |
| (IDR)— | Indonesian Rupiah |
| (JPY)— | Japanese Yen |
| (MXN)— | Mexican Peso |
| (NOK)— | Norwegian Krone |
| (NZD)— | New Zealand Dollar |
| (USD)— | United States Dollar |

---

Index Abbreviations

------

---

| | |
|:---|:---|
| (CDX.NA.HY)— | Markit North America High Yield CDS Index |
| (EURIBOR)— | Euro Interbank Offered Rate |
| (FEDEFF PRV)— | Effective Federal Funds Rate |
| (H15)— | U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index |
| (LIBOR)— | London Interbank Offered Rate |
| (MTA)— | Monthly Treasury Average Index |
| (OBFR)— | U.S. Overnight Bank Funding Rate |
| (PRIME)— | U.S. Federal Reserve Prime Rate |
| (SOFR)— | Secured Overnight Financing Rate |
| (UKG)— | UK Government Bonds |
| (SOFR30A)— | Secured Overnight Financing Rate 30-Day Average |
| (TIIE)— | Mexican Interbank Equilibrium Interest Rate |
| (TSFR)— | Term Secured Financing Rate |

---

Other Abbreviations

------

---

| | |
|:---|:---|
| (CLO)— | Collateralized Loan Obligation |
| (CMO)— | Collateralized Mortgage Obligation |
| (DAC)— | Designated Activity Company |
| (ICE)— | Intercontinental Exchange, Inc. |
| (REMIC)— | Real Estate Mortgage Investment Conduit |
| (STACR)— | Structured Agency Credit Risk |

---

*See accompanying notes to financial statements.* 

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Corporate Bonds & Notes | Corporate Bonds & Notes | Corporate Bonds & Notes | Corporate Bonds & Notes | Corporate Bonds & Notes |
| &nbsp;&nbsp;&nbsp;&nbsp; Advertising | $— | $920040 | $— | $920040 |
| &nbsp;&nbsp;&nbsp;&nbsp; Aerospace/Defense |  | 18505527 |  | 18505527 |
| &nbsp;&nbsp;&nbsp;&nbsp; Agriculture |  | 7474022 |  | 7474022 |
| &nbsp;&nbsp;&nbsp;&nbsp; Airlines |  | 38229745 |  | 38229745 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Manufacturers |  | 32831078 |  | 32831078 |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Parts & Equipment |  | 12712694 |  | 12712694 |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks |  | 96989047 |  | 96989047 |
| &nbsp;&nbsp;&nbsp;&nbsp; Biotechnology |  | 4024716 |  | 4024716 |
| &nbsp;&nbsp;&nbsp;&nbsp; Building Materials |  | 7037573 |  | 7037573 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals |  | 1505114 |  | 1505114 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial Services |  | 54090831 |  | 54090831 |
| &nbsp;&nbsp;&nbsp;&nbsp; Computers |  | 7555422 |  | 7555422 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution/Wholesale |  | 15490644 |  | 15490644 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Financial Services |  | 56007473 |  | 56007473 |
| &nbsp;&nbsp;&nbsp;&nbsp; Electric |  | 13890147 |  | 13890147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy-Alternate Sources |  | 2312077 |  | 2312077 |
| &nbsp;&nbsp;&nbsp;&nbsp; Engineering & Construction |  | 5848026 |  | 5848026 |
| &nbsp;&nbsp;&nbsp;&nbsp; Entertainment |  | 16833126 |  | 16833126 |
| &nbsp;&nbsp;&nbsp;&nbsp; Environmental Control |  | 3516724 |  | 3516724 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food |  | 11688109 |  | 11688109 |
| &nbsp;&nbsp;&nbsp;&nbsp; Food Service |  | 1234540 |  | 1234540 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forest Products & Paper |  | 5101225 |  | 5101225 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Products |  | 5246800 |  | 5246800 |
| &nbsp;&nbsp;&nbsp;&nbsp; Healthcare-Services |  | 22005664 |  | 22005664 |
| &nbsp;&nbsp;&nbsp;&nbsp; Home Builders |  | 1783284 |  | 1783284 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance |  | 23495271 |  | 23495271 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internet |  | 9755362 |  | 9755362 |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies |  | 4818854 |  | 4818854 |
| &nbsp;&nbsp;&nbsp;&nbsp; Iron/Steel |  | 4340243 |  | 4340243 |
| &nbsp;&nbsp;&nbsp;&nbsp; Leisure Time |  | 28777927 |  | 28777927 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lodging |  | 28287866 |  | 28287866 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery-Construction & Mining |  | 5312500 |  | 5312500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Machinery-Diversified |  | 2352379 |  | 2352379 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media |  | 51391813 |  | 51391813 |
| &nbsp;&nbsp;&nbsp;&nbsp; Metal Fabricate/Hardware |  | 7707271 |  | 7707271 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mining |  | 40807273 | 0 | 40807273 |
| &nbsp;&nbsp;&nbsp;&nbsp; Office/Business Equipment |  | 1371221 |  | 1371221 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil & Gas |  | 123145512 |  | 123145512 |
| &nbsp;&nbsp;&nbsp;&nbsp; Packaging & Containers |  | 17268501 |  | 17268501 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pharmaceuticals |  | 29724528 |  | 29724528 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pipelines |  | 72534767 |  | 72534767 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate |  | 4256864 |  | 4256864 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate Investment Trusts |  | 19831035 |  | 19831035 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retail |  | 40319697 |  | 40319697 |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductors |  | 96969 |  | 96969 |
| &nbsp;&nbsp;&nbsp;&nbsp; Software |  | 28755941 |  | 28755941 |

---

*See accompanying notes to financial statements.* 

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy—(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Telecommunications | $— | $24476025 | $— | $24476025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transportation |  | 9813279 |  | 9813279 |
|  Total Corporate Bonds & Notes |  | 1021474746 | 0 | 1021474746 |
|  Total Floating Rate Loans (Less Unfunded Loan Commitments of $562,362)\* |  | 400133447 |  | 400133447 |
|  Total Mortgage-Backed Securities\* |  | 202301738 |  | 202301738 |
|  Total Asset-Backed Securities\* |  | 193180851 |  | 193180851 |
|  Total U.S. Treasury & Government Agencies\* |  | 181444687 |  | 181444687 |
|  Total Foreign Government\* |  | 68002628 |  | 68002628 |
| Convertible Preferred Stocks | Convertible Preferred Stocks | Convertible Preferred Stocks | Convertible Preferred Stocks | Convertible Preferred Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Banks | 5883525 |  |  | 5883525 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Markets | 2965728 |  |  | 2965728 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pipelines |  | 11866140 |  | 11866140 |
|  Total Convertible Preferred Stocks | 8849253 | 11866140 |  | 20715393 |
|  Total Convertible Bonds\* |  | 12423035 |  | 12423035 |
| Common Stocks | Common Stocks | Common Stocks | Common Stocks | Common Stocks |
| &nbsp;&nbsp;&nbsp;&nbsp; Auto Components | 49484 |  |  | 49484 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chemicals |  | 1915 |  | 1915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Media |  | 123012 |  | 123012 |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, Gas & Consumable Fuels | 1364920 | 27991 |  | 1392911 |
|  Total Common Stocks | 1414404 | 152918 |  | 1567322 |
|  Total Municipals\* |  | 307476 |  | 307476 |
|  Total Escrow Shares\* |  |  | 0 | 0 |
|  Total Short-Term Investment\* |  | 27802376 |  | 27802376 |
|  Total Securities Lending Reinvestments\* |  | 338323953 |  | 338323953 |
| Purchased Options | Purchased Options | Purchased Options | Purchased Options | Purchased Options |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Currency Options at Value |  | 1111085 |  | 1111085 |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Default Swaptions at Value |  | 37238 |  | 37238 |
| &nbsp;&nbsp;&nbsp;&nbsp; Options on Exchange-Traded Futures Contracts at Value | 1983933 |  |  | 1983933 |
|  Total Purchased Options | 1983933 | 1148323 |  | 3132256 |
|  Total Net Investments | $12247590 | $2458562318 | $0 | $2470809908 |
|  Collateral for Securities Loaned (Liability) | $— | $(338260372) | $— | $(338260372) |
| Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Exchange Contracts (Unrealized Appreciation) | $— | $12749051 | $— | $12749051 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Foreign Currency Exchange Contracts (Unrealized Depreciation) |  | (8424901) |  | (8424901) |
|  Total Forward Contracts | $— | $4324150 | $— | $4324150 |
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Appreciation) | $761645 | $— | $— | $761645 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | (24222834) |  |  | (24222834) |
|  Total Futures Contracts | $(23461189) | $— | $— | $(23461189) |
| Written Options | Written Options | Written Options | Written Options | Written Options |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Currency Options at Value | $— | $(111537) | $— | $(111537) |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit Default Swaptions at Value |  | (658277) |  | (658277) |
| &nbsp;&nbsp;&nbsp;&nbsp; Options on Exchange-Traded Futures Contracts at Value | (291550) |  |  | (291550) |
|  Total Written Options | $(291550) | $(769814) | $— | $(1061364) |
| Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts | Centrally Cleared Swap Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Swap Contracts (Unrealized Appreciation) | $— | $4989972 | $— | $4989972 |
| &nbsp;&nbsp;&nbsp;&nbsp; Centrally Cleared Swap Contracts (Unrealized Depreciation) |  | (10949139) |  | (10949139) |
|  Total Centrally Cleared Swap Contracts | $— | $(5959167) | $— | $(5959167) |
| OTC Swap Contracts | OTC Swap Contracts | OTC Swap Contracts | OTC Swap Contracts | OTC Swap Contracts |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC Swap Contracts at Value (Assets) | $— | $16321 | $— | $16321 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC Swap Contracts at Value (Liabilities) |  | (118743) |  | (118743) |
|  Total OTC Swap Contracts | $— | $(102422) | $— | $(102422) |

---

\* See Schedule of Investments for additional detailed categorizations.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2022 is not presented.

During the year ended December 31, 2022, a transfer out of Level 3 in the amount of $11,728,650 was due to the initiation of a broker providing prices based on market indications which have been determined to be a significant observable input.

*See accompanying notes to financial statements.* 

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) (c) | $2470809908 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 242965 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash denominated in foreign currencies (d) | 14102695 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash collateral (e) | 46034480 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts at market value (f) | 16321 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on forward foreign currency exchange contracts | 12749051 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments sold | 2310338 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 1158420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 28760508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on OTC swap contracts | 3822 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 8910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 2576197418 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options at value (g) | 1061364 |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts at market value (h) | 118743 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on forward foreign currency exchange contracts | 8424901 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 338260372 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments purchased | 3493461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 436832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign taxes | 7779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 1649818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 600742 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1005459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 167438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 290808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 392474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 355910191 |
|  **Net Assets** | $2220287227 |
| Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $2770034216 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) (i) | (549746989) |
|  **Net Assets** | $2220287227 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1387413111 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 689600713 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 143273403 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 129365180 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 64948246 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 13436929 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $10.72 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 10.62 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | $10.66 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $2,746,765,629.

(b) Includes securities loaned at value of $369,704,347.

(c) Investments at value is net of unfunded loan commitments of $562,362.

(d) Identified cost of cash denominated in foreign currencies was $13,498,811.

(e) Includes collateral of $21,152,026 for centrally cleared swap contracts and $24,882,454 for futures contracts.

(f) Net premium paid on OTC swap contracts was $53,783.

(g) Premiums received on written options were $1,528,435.

(h) Net premium received on OTC swap contracts was $102,612.

(i) Includes foreign capital gains tax of $7,779.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** | **Investment Income** |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends | $2581142 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest (a) | 148673964 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 1146716 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 152401822 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 14309374 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 113909 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 344088 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 1919131 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 246078 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 97884 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 125874 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 21500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 25256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 17257749 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (1283097) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 15974652 |
|  **Net Investment Income** | 136427170 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
| Net realized gain (loss) on : |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (95120446) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased options | (10826488) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (160811376) |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options | 4733594 |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 1814426 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (1060901) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency transactions | (566043) |
|  Net realized gain (loss) | (261837234) |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments (b) | (339011922) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchased options | 980187 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (25298961) |
| &nbsp;&nbsp;&nbsp;&nbsp; Written options | (1105926) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (1291872) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | 791721 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward foreign currency transactions | 1493873 |
|  Net change in unrealized appreciation (depreciation) | (363442900) |
|  Net realized and unrealized gain (loss) | (625280134) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(488852964) |

---

(a) Net of foreign withholding taxes of $141,932.

(b) Includes change in foreign capital gains tax of $92,406.

*See accompanying notes to financial statements.* 

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $136427170 | $137423531 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (261837234) | 37918023 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (363442900) | (90920972) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | $(488852964) | 84420582 |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (93994936) | (74199667) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (44422317) | (31962727) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (9671952) | (7626976) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (148089205) | (113789370) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (188743143) | 8995386 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (825685312) | (20373402) |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 3045972539 | 3066345941 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $2220287227 | $3045972539 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1315656 | $15365983 | 5271849 | $72656729 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 8568363 | 93994936 | 5504426 | 74199667 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (21420235) | (255304453) | (12061653) | (165358450) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (11536216) | $(145943534) | (1285378) | $(18502054) |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 2908805 | $34162427 | 8197198 | $111493282 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 4082933 | 44422317 | 2390630 | 31962727 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (9234182) | (108086123) | (7451585) | (101261406) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (2242444) | $(29501379) | 3136243 | $42194603 |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 607209 | $7561747 | 2137990 | $29247594 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 885710 | 9671952 | 568753 | 7626976 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (2587227) | (30531929) | (3779782) | (51571733) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (1094308) | $(13298230) | (1073039) | $(14697163) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(188743143) |  | $8995386 |

---

*See accompanying notes to financial statements.* 

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.73 | $13.87 | $13.81 | $12.68 | $13.93 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.65 | 0.62 | 0.68 | 0.71 | 0.71 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.93) | (0.24) | 0.20 | 1.09 | (1.23) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.28) | 0.38 | 0.88 | 1.80 | (0.52) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.73) | (0.52) | (0.82) | (0.67) | (0.73) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.73) | (0.52) | (0.82) | (0.67) | (0.73) |
|  **Net Asset Value, End of Period** | $10.72 | $13.73 | $13.87 | $13.81 | $12.68 |
|  **Total Return (%)** (b) | (16.66) | 2.82 | 6.92 | 14.49 | (3.80) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 |
|  Net ratio of expenses to average net assets (%) (c) | 0.55 | 0.54 | 0.55 | 0.54 | 0.54 |
|  Ratio of net investment income (loss) to average net assets (%) | 5.51 | 4.55 | 5.17 | 5.32 | 5.33 |
|  Portfolio turnover rate (%) | 28 | 69 (d) | 66 (d) | 58 (d) | 90 (d) |
|  Net assets, end of period (in millions) | $1387.4 | $1934.4 | $1971.5 | $2007.9 | $2006.8 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.59 | $13.73 | $13.69 | $12.57 | $13.81 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.61 | 0.58 | 0.64 | 0.67 | 0.67 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.89) | (0.23) | 0.18 | 1.08 | (1.22) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.28) | 0.35 | 0.82 | 1.75 | (0.55) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.69) | (0.49) | (0.78) | (0.63) | (0.69) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.69) | (0.49) | (0.78) | (0.63) | (0.69) |
|  **Net Asset Value, End of Period** | $10.62 | $13.59 | $13.73 | $13.69 | $12.57 |
|  **Total Return (%)** (b) | (16.93) | 2.61 | 6.61 | 14.23 | (4.02) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 |
|  Net ratio of expenses to average net assets (%) (c) | 0.80 | 0.79 | 0.80 | 0.79 | 0.79 |
|  Ratio of net investment income (loss) to average net assets (%) | 5.28 | 4.30 | 4.92 | 5.07 | 5.08 |
|  Portfolio turnover rate (%) | 28 | 69 (d) | 66 (d) | 58 (d) | 90 (d) |
|  Net assets, end of period (in millions) | $689.6 | $913.2 | $879.8 | $852 | $802.6 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Financial Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selected per share data** | | | | | |
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $13.65 | $13.79 | $13.73 | $12.61 | $13.85 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.63 | 0.60 | 0.66 | 0.69 | 0.68 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (2.91) | (0.24) | 0.19 | 1.08 | (1.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (2.28) | 0.36 | 0.85 | 1.77 | (0.53) |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.71) | (0.50) | (0.79) | (0.65) | (0.71) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.71) | (0.50) | (0.79) | (0.65) | (0.71) |
|  **Net Asset Value, End of Period** | $10.66 | $13.65 | $13.79 | $13.73 | $12.61 |
|  **Total Return (%)** (b) | (16.78) | 2.68 | 6.77 | 14.30 | (3.92) |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
|  Net ratio of expenses to average net assets (%) (c) | 0.70 | 0.69 | 0.70 | 0.69 | 0.69 |
|  Ratio of net investment income (loss) to average net assets (%) | 5.37 | 4.40 | 5.03 | 5.17 | 5.18 |
|  Portfolio turnover rate (%) | 28 | 69 (d) | 66 (d) | 58 (d) | 90 (d) |
|  Net assets, end of period (in millions) | $143.3 | $198.3 | $215.1 | $224.2 | $228 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

(d) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 69%, 63%, 52%, and 56% for the years ended December 31, 2021, 2020, 2019, and 2018,
respectively.

*See accompanying notes to financial statements.* 

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Western Asset Management Strategic Bond Opportunities Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued based upon evaluated or composite bid quotations obtained from pricing services selected by the Adviser. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Foreign currency forward contracts are valued through a third-party pricing service by interpolating between forward and spot currency rates in the London foreign exchange markets as of a designated hour on a valuation day. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sale price available as of the close of business on a valuation day or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that are traded on commodity exchanges are valued at their settlement prices established by the exchanges on which they are traded as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

Options, including options on swaps ("swaptions"), currencies, and futures contracts that are traded OTC are generally valued based upon interdealer bid and ask prices or prices provided by pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or a pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third-party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including, but not limited to, the overnight index swap rate, the respective interbank offered forward rate or other interest rates, yield curves or credit spreads to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees"). A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. Book-tax differences are primarily due to worthless securities deduction. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**High-Yield Debt Securities -** The Portfolio may invest in high-yield debt securities, or "junk bonds," which are securities that are rated below "investment grade" or, if not rated, are of equivalent quality. A portfolio with high-yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high-yield debt securities are generally less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio's subadviser may find it more difficult to value or sell lower-rated debt securities and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

**Floating Rate Loans -** The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio's investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement. The Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments, it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

The Portfolio will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling the participation, the Portfolio may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.

**Unfunded Loan Commitments -** The Portfolio may enter into certain credit agreements, all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower's discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of December 31, 2022, the Portfolio had open unfunded loan commitments of $562,362. At December 31, 2022, the Portfolio had sufficient cash and/or securities to cover these commitments.

**BHFTII-34** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Collateralized Obligations -** The Portfolio may invest in collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs"), other collateralized debt obligations ("CDOs"), and other similarly structured securities. CDOs, CBOs and CLOs are types of asset-backed securities. A CBO is a trust that is backed by a diversified pool of high risk, below investment grade fixed-income securities. The collateral can be from many types of fixed-income securities such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans that may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties.

For CDOs, CBOs and CLOs, the cash flow from the trust is split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is typically the "equity" or "first loss" tranche, which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Senior tranches are paid from the cash flows from the underlying assets before the junior tranches and equity tranches. Losses are first borne by the equity tranches, next by the junior tranches, and finally by the senior tranches. The risks of an investment in a CBO, CLO or other CDO depend largely on the quality and type of the collateral securities and the class of the instrument in which a Portfolio invests. If some debt instruments go into default and the cash collected by the CBO, CLO or CDO is insufficient to pay all of its investors, those in the lowest, most junior tranches suffer losses first. Since they are partially protected from defaults, senior tranches typically have higher ratings and lower potential yields than their underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, more senior tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CBO, CLO or other CDO securities as a class.

**Mortgage-Related and Other Asset-Backed Securities -** The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities ("SMBS"), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or "IO" class), while the other class will receive all of the principal (the principal-only or "PO" class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio's Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

**Mortgage Dollar Rolls -** The Portfolio may enter into mortgage "dollar rolls" in which a Portfolio sells to-be-announced ("TBA") mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

**TBA Purchase and Forward Sale Commitments -** The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio's other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under "Investment Valuation and Fair Value Measurements".

**BHFTII-35** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**When-Issued and Delayed-Delivery Securities -** The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $27,802,376. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $134,307,473. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

**BHFTII-36** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| Securities Lending Transactions |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks | $(567605) | $— | $— | $— | $(567605) |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes | (332038813) |  |  |  | (332038813) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Government | (5653954) |  |  |  | (5653954) |
|  **Total Borrowings** | $**(338260372)** | $**—** | $**—** | $**—** | $**(338260372)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(338260372) |

---

**3. Investments in Derivative Instruments** 

**Forward Foreign Currency Exchange Contracts -** The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed-upon future date. These contracts are valued daily and the Portfolio's net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the valuation date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio may also experience losses even when such contracts are used for hedging purposes. The Portfolio's maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

**Options Contracts -** An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain investment exposure to a target asset class or to enhance return. Writing puts or buying calls tend to increase the Portfolio's exposure

**BHFTII-37** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

to the underlying instrument and writing calls or buying puts tends to decrease the Portfolio's exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio's investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio's maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option is worthless when it expires and the premium paid for the option is considered a realized loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received by the Portfolio for a written option is recorded as an asset and an equivalent liability. The liability is subsequently marked-to-market to reflect the current value of the option written. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received by the Portfolio is offset against the amount paid for the purchase of the underlying instrument.

Swaptions are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement at any time before the expiration of the option.

An Option on Exchange-Traded Futures Contract ("Futures Option") is an option contract in which the underlying instrument is a single futures contract.

**Swap Agreements -** The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are either privately negotiated in the OTC market ("OTC swaps") or executed in a multilateral or other trade facility platform, such as a registered commodities exchange ("centrally cleared swaps"). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

*Centrally Cleared Swaps:* Clearinghouses currently offer clearing derivative transactions which include interest rate and credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio's exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received upon entering into the swap agreement compensate for differences between the stated

**BHFTII-38** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit, and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio's maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract's remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio's exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

*Credit Default Swaps*: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (referred to as the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement provided that no credit event has occurred. As the seller of protection, the Portfolio will effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may be worthless when it expires and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event involving an entity in the index, the credit event is settled based on that entity's weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer, serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of

**BHFTII-39** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2022, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

*Interest Rate Swaps:* The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust its interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party's stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include: (1) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or "cap"; (2) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or "floor"; (3) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels; and (4) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets. The Portfolio's maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contract's remaining life, to the extent that amount is positive.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets &<br>Liabilities Location** | **Fair Value** | **Statement of Assets &<br>Liabilities Location** | **Fair Value** |
|  Interest Rate | Unrealized appreciation on centrally cleared swap contracts (a) (b) | $4504584 | Unrealized depreciation on centrally cleared swap contracts (a) (b) | $8774568 |
|  | Unrealized appreciation on futures contracts (a) (c) | 761645 | Unrealized depreciation on futures contracts (a) (c) | 24222834 |
|  | Investments at market value (a) (d) | 2700 |  |  |
|  Credit | OTC swap contracts at market value (e) | 16321 | OTC swap contracts at market value (e) | 118743 |
|  | Investments at market value (d) | 37238 | Written options at value | 658277 |
|  | Unrealized appreciation on centrally cleared swap contracts (a) (b) | 485388 | Unrealized depreciation on centrally cleared swap contracts (a) (b) | 2174571 |
|  Equity | Investments at market value (a) (d) | 1981233 | Written options at value (a) | 291550 |
|  Foreign Exchange | Investments at market value (d) | 1111085 |  |  |
|  | Unrealized appreciation on forward foreign currency exchange contracts | 12749051 | Unrealized depreciation on forward foreign currency exchange contracts<br> Written options at value  | 8424901<br> 111537 |
| Total | Total | $21649245 |  | $44776981 |

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(a) Financial instrument not subject to a master netting agreement.

(b) Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.

(c) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

(d) Represents purchased options which are part of investments at value as shown in the Statement of Assets and Liabilities.

(e) Excludes OTC swap interest receivable of $3,822.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

**BHFTII-40** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

The following table presents the Portfolio's derivative assets by counterparty net of amounts available for offset under a master netting agreement ("MNA") (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2022.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative Assets<br>subject to an MNA<br>by Counterparty** | **Financial<br>Instruments<br>available for offset** | **Collateral<br>Received†** | **Net<br>Amount\*** |
|  Bank of America N.A. | $598025 | $(598025) | $— | $— |
|  Goldman Sachs & Co. | 37238 | (37238) |  |  |
|  Goldman Sachs Bank USA | 917980 | (917980) |  |  |
|  JPMorgan Chase Bank N.A. | 3565899 | (1089174) | (457883) | 2018842 |
|  Morgan Stanley Capital Services LLC | 8794553 | (2280157) | (497678) | 6016718 |
|  | $13913695 | $(4922574) | $(955561) | $8035560 |

---

The following table presents the Portfolio's derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2022.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative Liabilities<br>subject to an MNA<br>by Counterparty** | **Financial<br>Instruments<br>available for offset** | **Collateral<br>Pledged†** | **Net<br>Amount\*\*** |
|  Bank of America N.A. | $635082 | $(598025) | $– $| 37057 |
|  Goldman Sachs & Co. | 658277 | (37238) | – | 621039 |
|  Goldman Sachs Bank USA | 4650768 | (917980) | – | 3732788 |
|  JPMorgan Chase Bank N.A. | 1089174 | (1089174) | – |  |
|  Morgan Stanley Capital Services LLC | 2280157 | (2280157) | – |  |
|  | $9313458 | $(4922574) | $– $| 4390884 |

---

---

| | |
|:---|:---|
| \* | Net amount represents the net amount receivable from the counterparty in the event of default. |
| \*\* | Net amount represents the net amount payable due to the counterparty in the event of default. |
| † | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |

---

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Statement of Operations Location—Net<br>Realized Gain (Loss)** | **Interest Rate** | **Credit** | **Equity** | **Foreign<br>Exchange** | **Total** |
|  Purchased options . . . . . . . . . . . . . . | $(532964) | $— | $(6301742) | $(3991782) | $(10826488) |
|  Forward foreign currency transactions . . . . . |  |  |  | (566043) | (566043) |
|  Swap contracts . . . . . . . . . . . . . . . . | (314589) | 2129015 |  |  | 1814426 |
|  Futures contracts . . . . . . . . . . . . . . . | (160811376) |  |  |  | (160811376) |
|  Written options . . . . . . . . . . . . . . . . | 640960 |  | 1076257 | 3016377 | 4733594 |
|  | $(161017969) | $2129015 | $(5225485) | $(1541448) | $(165655887) |
| **Statement of Operations Location—Net<br>Change in Unrealized Appreciation (Depreciation)** | **Interest Rate** | **Credit** | **Equity** | **Foreign<br>Exchange** | **Total** |
|  Purchased options . . . . . . . . . . . . . . | $(8801) | $(434317) | $1880857 | $(457552) | $980187 |
|  Forward foreign currency transactions . . . . . |  |  |  | 1493873 | 1493873 |
|  Swap contracts . . . . . . . . . . . . . . . . | 730185 | (2022057) |  |  | (1291872) |
|  Futures contracts . . . . . . . . . . . . . . . | (25298961) |  |  |  | (25298961) |
|  Written options . . . . . . . . . . . . . . . . |  | (186722) | (756976) | (162228) | (1105926) |
|  | $(24577577) | $(2643096) | $1123881 | $874093 | $(25222699) |

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**BHFTII-41** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Purchased options . . . . . . . . . . . . . . . . | 134944174 |
|  Forward foreign currency transactions . . | 624432021 |
|  Futures contracts long . . . . . . . . . . . . . | 2597709472 |
|  Futures contracts short . . . . . . . . . . . . . | (198542663) |
|  Swap contracts . . . . . . . . . . . . . . . . . . | 343076879 |
|  Written options . . . . . . . . . . . . . . . . . | (232104301) |

---

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

**BHFTII-42** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange-traded derivatives (e.g., futures contracts and exchange-traded options), while collateral terms are contract specific for OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio's credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements ("MSFTA") govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction, the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

*Foreign Investment Risk:* The investments by the Portfolio in foreign securities, whether direct or indirect, involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to

**BHFTII-43** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

foreign government exchange restrictions, expropriation, taxation, unexpected market closures or other political, social or economic developments, such as the imposition of economic sanctions against one or more countries, organizations, entities and/or individuals, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

*LIBOR Replacement Risk:* Many financial instruments use or may use a floating rate based on LIBOR, which is the offered rate at which major international banks can obtain wholesale, unsecured funding. LIBOR may be a significant factor in determining the Portfolio's payment obligations under a derivative investment, the cost of financing to the Portfolio or an investment's value or return to the Portfolio, and may be used in other ways that affect the Portfolio's investment performance. In 2017, the UK Financial Conduct Authority (FCA) announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Index Average for GBP LIBOR). Various financial industry groups have been planning for the transition away from LIBOR and markets are developing in response to these new rates, but there are concerns around liquidity of the new rates and obstacles to converting certain securities and transactions to new rates. Neither the effect of the transition process nor its ultimate success can yet be known. The transition away from and eventual elimination of LIBOR may adversely affect the interest rates on amounts of any payments paid or received with respect to, and liquidity and value of, certain assets and liabilities of the Portfolio that are tied to LIBOR. These may include bank loans, floating rate securities, structured securities (including asset-backed and mortgage-backed securities), other debt securities, derivatives, and financing transactions tied to LIBOR, particularly insofar as the documentation governing such instruments does not include "fall back" provisions addressing the transition from LIBOR. The effect of any changes to, or discontinuation of, LIBOR on the Portfolio will vary depending on, among other things (1) existing fallback or termination provisions in individual contracts and (2) the extent to which industry participants adopt new reference rates and fallbacks for both legacy and new products and instruments. The Subadviser may have discretion to determine a successor or substitute reference rate, including any price or other adjustments to account for differences between the successor or substitute reference rate and previous rate. Such successor or substitute reference rate and any adjustments selected may negatively impact the Portfolio's investments, performance or financial condition, and may expose the Portfolio to additional tax, accounting and regulatory risks. The transition away from LIBOR may affect the value, liquidity or return on certain Portfolio investments, reduce the effectiveness of related transactions such as hedges, and may result in costs incurred in connection with closing out positions and entering into new trades, adversely impacting the Portfolio's overall financial condition or results of operations. The transition process may involve, among other things, increased volatility in markets for instruments that continue to rely on LIBOR. It is difficult to predict the full impact of the transition away from LIBOR and the adoption of alternative reference rates on the Portfolio.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $100945527 | $588923358 | $123177441 | $1025570038 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

---

| | | |
|:---|:---|:---|
| **Management<br>Fees earned by<br>Brighthouse<br>Investment Advisers<br>for the year ended<br>December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $14309374 | 0.650% | Of the first $500 million |
|  | 0.550% | On amounts in excess of $500 million |

---

**BHFTII-44** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Western Asset Management Company is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.055% | On the first $500 million |
| 0.025% | On the next $500 million |
| 0.050% | On the next $1 billion |
| 0.075% | On amounts in excess of $2 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**BHFTII-45** 

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**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $2761103630 |
|  Gross unrealized appreciation | 22951698 |
|  Gross unrealized (depreciation) | (316737948) |
|  Net unrealized appreciation (depreciation) | $(293786250) |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $148089205 | $113789370 | $— | $— | $148089205 | $113789370 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital Losses** | **Total** |
| $142680653 | $– $| (292952603) | $(399184230) | $(549456180) |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $129,908,482 and accumulated long-term capital losses of $269,275,748.

**9. Recent Accounting Pronouncement** 

In January 2021, the FASB issued Accounting Standards Update No. 2021-01 ("ASU 2021-01"), "Reference Rate Reform (Topic 848)". ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, as regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective through December 31, 2022, for all entities. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management expects that the adoption of the guidance will not have a material impact on the Portfolio's financial statements.

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-46** 

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**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Western Asset Management Strategic Bond Opportunities Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Western Asset Management Strategic Bond Opportunities Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Western Asset Management Strategic Bond Opportunities Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-47** 

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**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as<br>Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC; Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |

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**BHFTII-48** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial Officer and Treasurer, of Trust I and Trust II | From<br>November<br>2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

---

\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-49** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-50** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-51** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Western Asset Management Strategic Bond Opportunities Portfolio.* The Board also considered the following information in relation to the Agreement with the Adviser, Western Asset Management Company, LLC and Western Asset Management Company Pte. Ltd. regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one- and three-year periods ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the five-year period ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the one-year period ended October 31, 2022 and outperformed the same benchmark for the three- and five-year periods ended October 31, 2022. The Board also considered that the Portfolio underperformed its blended benchmark for the one-, three-, and five-year periods ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance,

**BHFTII-52** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management Strategic Bond Opportunities Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

The Board also noted that at the November Meeting, it approved an amended and restated Subadvisory Agreement for the Portfolio, adding Western Asset Management Company Pte. Ltd. ("WAMS") as an additional party to the Subadvisory Agreement and permitting the delegation of certain responsibilities to WAMS (the "Amendment"). Specifically, the Amendment permits delegation (the "Delegation") to WAMS the responsibilities of Western Asset Management Company, LLC (the "Subadviser") with respect to transactions in investments exposed to China, including through the China Bond Connect and China Interbank Bond Market Direct Access Program (collectively, "China-Related Investments"). The Amendment was proposed by the Adviser for the Board's approval based on the Subadviser's representations to the Adviser that the Delegation would increase efficiencies in the execution of the Portfolio's China-Related Investments and provide better time zone coverage of the markets in which China-Related Investments trade.

In assessing the Adviser's recommendation to approve the Amendment, the Board considered the Subadviser's representations to the Adviser that (i) WAMS, like the Subadviser, is a wholly-owned subsidiary of Franklin Resources, Inc., and that, as an operational matter, the Subadviser would remain the "headquarters" of the Western Asset group of companies and would continue to exercise operational control and decision-making with respect to the entire organization; and (ii) the Subadviser and WAMS have reporting lines that ultimately both lead into the same Chief Investment Officer. The Board also considered the Adviser's representations that (i) there are no changes to the Subadviser's duties and responsibilities to the Portfolio in connection with the Delegation and the Subadviser will remain liable under the Agreement for any acts or omissions of WAMS to the same extent as if WAMS' acts or omissions were committed by the Subadviser; and (ii) the Portfolio would not experience any increase in aggregate fees paid for investment advisory services as a result of the Delegation.

The Adviser provided a representation to the Board that, after a review of the scope and terms of the Delegation and its potential implications for the Portfolio, the Adviser had concluded that the Portfolio could expect to continue to receive subadvisory services of the same scope, nature and quality under the Agreement following the Delegation as it received before the Delegation.

Based on the foregoing and other relevant considerations, at the November meeting, the Board, including a majority of the Independent Trustees, voted to approve the Amendment. The Board concluded that, in light of all factors considered, the terms of the Amendment, including fee rates, were fair and reasonable.

**BHFTII-53** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Managed by Western Asset Management Company, LLC** 

**Portfolio Manager Commentary\*** 

**PERFORMANCE** 

For the 12 months ended December 31, 2022, the Class A, B and E shares of the Western Asset Management U.S. Government Portfolio returned -9.01%, -9.17%, and -9.12%, respectively. The Portfolio's benchmark, the Bloomberg U.S. Intermediate Government Bond Index¹, returned -7.73%.

**MARKET ENVIRONMENT / CONDITIONS** 

During the 2022 calendar year and reporting period, bond yields soared and risk assets weakened as the Federal Reserve (the "Fed") and other central banks aggressively hiked interest rates to address rising global inflation pressures.

Geopolitical risks came to the forefront with Russia's invasion of Ukraine in February. The imposition of financial and economic sanctions, including the freezing of the Russian central bank's external reserve assets, pushed oil prices past $100 per barrel and renewed concerns over global growth as much of the world was still recovering from economic disruptions brought on by new COVID-19 variants in late 2021.

As the year progressed, inflation pressure in the U.S. continued to rise and far exceeded market and Fed expectations. Price shocks were exacerbated by the invasion of Ukraine, which put additional pressure on food and energy prices, while the reinstatement of COVID-19 lockdowns in China worsened supply chain pressures. Headline consumer price inflation ("CPI") peaked at 9.1% year-over-year ("YoY") in June and core CPI peaked at 6.6% in September. U.S. inflation moderated in the fourth quarter with headline and core CPI slowing to 6.5% and 5.7% YoY, respectively.

The Fed dramatically shifted course and continuously shifted their rate hike expectations higher throughout the year. After starting the year only anticipating the need to raise the fed funds rate by 75 basis points ("bps") in 2022, the Fed raised rates by 425 bps, in its fastest pace of rate hikes in a single year since the 1980s, to end 2022 at a target range of 4.25-4.50%. Other developed market central banks also aggressively raised rates, including the European Central Bank, which exited its negative rate policy which had been in place since 2014.

Bonds had their worst year since the Great Depression, and the Bloomberg U.S. Aggregate Bond Index was down 13% for the year, which was by far its worst year since its 1971 inception. The yield curve bear flattened, as short-term yields rose more than long-term yields, and most of the curve became inverted. Corporate credit, structured product and U.S. dollar-denominated emerging market ("EM") bond spreads all widened. The U.S. dollar strengthened vs. almost all currencies throughout the year although it generally weakened during the fourth quarter of 2022.

**PORTFOLIO REVIEW / PERIOD ENDING POSITIONING** 

For the twelve-month period ended December 31, 2022, the Western Asset Management U.S. Government Portfolio had a negative return and underperformed its benchmark, the Bloomberg U.S. Intermediate Government Bond Index.

Over the twelve-month period, the most significant detractor to the Portfolio's performance was its duration stance. The Portfolio generally maintained a slight duration overweight through much of the first half of 2022, which detracted from performance as yields rose across the curve. The second largest detractor to performance was the Portfolio's Agency Mortgage-Backed Securities ("MBS") exposure, which was gradually shifted from an underweight to a modest overweight by the end of the reporting period, as spreads widened particularly during the third quarter of 2022. The third largest detractor to performance was the Portfolio's overweight exposure to Agency Debentures as spreads slightly widened during the second half of 2022. Finally, exposures to structured products had a slight negative impact on performance, mainly as spreads for Commercial Mortgage-Backed Securities ("CMBS") widened during the period.

The Portfolio's yield curve positioning was the main contributor to performance. Yield curve positioning that was focused on the very long end (30- and 20-year key rate duration) benefitted as the yield curve flattened and ultimately inverted in the course of 2022, with front-end and intermediate bond yields rising more than the long-end of the curve. The second largest contributor to performance was the Portfolio's emerging markets exposure, mainly due to favorable issue selection, as spreads for U.S. dollar-denominated EM bonds widened.

During the twelve-month period ended December 31, 2022, the Portfolio used interest rate futures to adjust its duration and yield curve exposure. The Portfolio also used Agency MBS derivatives to gain exposure to specific characteristics of Agency MBS. The net impact of all derivative transactions on the Portfolio's performance was negative.

**BHFTII-1** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Managed by Western Asset Management Company, LLC** 

**Portfolio Manager Commentary\*—(Continued)** 

As of December 31, 2022, the Portfolio was underweight U.S. Treasurys relative to the benchmark, while being overweight Agency Debentures and Agency MBS. The Portfolio also held small out-of-benchmark exposures to EM debt and structured products (including Non-Agency Residential MBS and CMBS).

**Fredrick Marki** 

**S. Kenneth Leech** 

**Mark S. Lindbloom** 

Portfolio Managers

*Western Asset Management Company, LLC* 

\* This commentary may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Portfolio's trading intent. Information about the Portfolio's holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

<sup>1</sup> The Bloomberg U.S. Intermediate Government Bond Index includes most obligations of the U.S. Treasury, agencies and quasi-federal corporations having maturities between one and ten years.

**BHFTII-2** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**A $10,000 INVESTMENT COMPARED TO THE BLOOMBERG U.S. INTERMEDIATE GOVERNMENT BOND INDEX**![LOGO](g400324g82q25.jpg)

**AVERAGE ANNUAL RETURNS (%) FOR THE YEAR ENDED DECEMBER 31, 2022** 

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| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| &nbsp;&nbsp;&nbsp;**Western Asset Management U.S. Government Portfolio** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class A** | -9.01 | 0.19 | 0.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class B** | -9.17 | -0.06 | 0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Class E** | -9.12 | 0.04 | 0.54 |
| &nbsp;&nbsp;&nbsp;**Bloomberg U.S. Intermediate Government Bond Index** | -7.73 | 0.46 | 0.69 |

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Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

**PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2022** 

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**Top Sectors** 

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| | |
|:---|:---|
|  | **% of<br>Net Assets** |
| **U.S. Treasury & Government Agencies** | **88.7** |
| **Foreign Government** | **7.3** |
| **Corporate Bonds & Notes** | **4.1** |
| **Mortgage-Backed Securities** | **2.0** |
| **Asset-Backed Securities** | **0.1** |

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**BHFTII-3** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Understanding Your Portfolio's Expenses** 

**Shareholder Expense Example** 

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as "expenses") of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2022 through December 31, 2022.

**Actual Expenses** 

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Western Asset Management U.S. Government Portfolio** |  | **Annualized<br>Expense**<br>**Ratio** | **Beginning<br>Account Value<br>July 1,**<br>**2022** | **Ending<br>Account Value<br>December 31,<br>2022** | **Expenses Paid<br>During Period\*\*<br>July 1, 2022<br>to<br>December 31,**<br>**2022** |
|  Class A (a) | Actual | 0.49% | $1000.00 | $974.40 | $2.44 |
|  | Hypothetical\* | 0.49% | $1000.00 | $1022.74 | $2.50 |
|  Class B (a) | Actual | 0.74% | $1000.00 | $973.40 | $3.68 |
|  | Hypothetical\* | 0.74% | $1000.00 | $1021.48 | $3.77 |
|  Class E (a) | Actual | 0.64% | $1000.00 | $974.40 | $3.19 |
|  | Hypothetical\* | 0.64% | $1000.00 | $1021.98 | $3.26 |

---

\* Hypothetical assumes a rate of return of 5% per year before expenses. 

\*\* Expenses paid are equal to the Portfolio's annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period). 

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to
Financial Statements.

**BHFTII-4** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—88.7% of Net Assets** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage-Backed—40.7%** | **Agency Sponsored Mortgage-Backed—40.7%** | **Agency Sponsored Mortgage-Backed—40.7%** |
| Fannie Mae 20 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/41 | 4196615 | $3537503 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/41 | 185081 | 156012 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/40 | 3109222 | 2734741 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/41 | 501733 | 441269 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/41 | 853315 | 750477 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/41 | 1898126 | 1669357 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/35 | 456356 | 423397 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/36 | 710631 | 659287 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/36 | 531772 | 493352 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/36 | 1119541 | 1038637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/36 | 5869274 | 5445132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/36 | 2330057 | 2161660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/36 | 1920334 | 1781543 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/37 | 431403 | 400206 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/38 | 596928 | 553807 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/34 | 133445 | 127901 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/35 | 91492 | 87691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/37 | 155770 | 148908 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/37 | 104408 | 100076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/37 | 167064 | 159702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/39 | 162626 | 155470 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/40 | 651276 | 609936 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/42 | 2449673 | 2268935 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/31 | 226390 | 224642 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/01/31 | 273960 | 271844 |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/50 | 143000 | 118029 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/50 | 223876 | 183519 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/50 | 1362200 | 1116732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 12/01/50 | 2842609 | 2324258 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/51 | 7319219 | 6010951 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 7393303 | 6074991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/51 | 11422359 | 9379358 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 7571374 | 6190806 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 9122696 | 7444787 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 07/01/51 | 270497 | 222002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 1002821 | 820777 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/01/51 | 721554 | 591851 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/51 | 1129088 | 920804 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/52 | 2366233 | 1934768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/52 | 2756167 | 2260928 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/52 | 1627227 | 1342548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/50 | 468742 | 400760 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/50 | 872717 | 744941 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 2052996 | 1760868 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/50 | 790541 | 675843 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/50 | 234400 | 200712 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/51 | 330051 | 283539 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/51 | 1996379 | 1709032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/51 | 1908878 | 1626482 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/51 | 741897 | 638910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 2336397 | 1999649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/51 | 2851856 | 2446019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/51 | 2918208 | 2508177 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 904480 | 775649 |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 5154700 | 4404815 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/51 | 6262769 | 5334320 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/51 | 1529818 | 1317030 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/51 | 7017910 | 5991725 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 3270531 | 2803310 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/52 | 10016797 | 8526766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 3501670 | 2978771 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/52 | 374068 | 319074 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/42 | 1244227 | 1132133 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/43 | 173272 | 157655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/01/43 | 425172 | 387203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/43 | 406158 | 370052 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/45 | 360418 | 327973 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/46 | 382224 | 342473 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/46 | 283727 | 254220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/47 | 87545 | 79663 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/47 | 42193 | 37792 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/48 | 3755359 | 3364861 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/50 | 89924 | 80514 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/50 | 11872422 | 10652528 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/50 | 6021220 | 5335717 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/50 | 906777 | 800300 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/50 | 817276 | 729031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/51 | 495706 | 437391 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/51 | 485936 | 433346 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 08/01/51 | 2079156 | 1857822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/51 | 1005921 | 888458 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/51 | 2123379 | 1873504 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/51 | 2688159 | 2393251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/01/51 | 822139 | 732699 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/52 | 3423100 | 3032729 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/52 | 1062119 | 942430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/52 | 6568328 | 5847392 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/52 | 577406 | 507002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/42 | 164835 | 154267 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/43 | 1033249 | 970366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/44 | 275213 | 256767 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/45 | 160299 | 150049 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/46 | 1679479 | 1569321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/47 | 141651 | 130971 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/49 | 10338775 | 9562623 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/50 | 169506 | 156094 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/51 | 145932 | 133140 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 12/01/51 | 712003 | 650198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/52 | 1314446 | 1207569 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/01/52 | 1801932 | 1651034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/52 | 4772878 | 4359796 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/52 | 6091617 | 5583029 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/01/40 | 320550 | 312810 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/42 | 2666103 | 2604047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/42 | 739544 | 710217 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/43 | 6001165 | 5810422 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/43 | 2986520 | 2891542 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/01/44 | 473776 | 453809 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/48 | 3626358 | 3462215 |

---

*See accompanying notes to financial statements.* 

**BHFTII-5** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Fannie Mae 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/48 | 1984396 | $1884844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/50 | 487430 | 462907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/52 | 1261983 | 1191649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/52 | 3775729 | 3562905 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/52 | 6061529 | 5689465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/41 | 1768608 | 1750770 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/01/44 | 572761 | 562658 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/45 | 47214 | 46694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/46 | 367053 | 360581 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/47 | 170615 | 167837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/47 | 656898 | 645784 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/47 | 40392 | 39487 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/48 | 228955 | 225156 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/48 | 486470 | 479391 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/48 | 798594 | 783240 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/48 | 436695 | 427910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/01/49 | 160371 | 157071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/49 | 177908 | 174697 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/49 | 2573646 | 2529995 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/01/49 | 649377 | 637924 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/01/50 | 445401 | 434237 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/50 | 132269 | 127858 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/52 | 864124 | 833106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/52 | 5551157 | 5356275 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/33 | 76099 | 76748 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 09/01/33 | 93256 | 95232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 10/01/35 | 264590 | 270197 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/01/36 | 408335 | 417002 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/39 | 3440 | 3505 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/01/39 | 5965 | 6024 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/40 | 14974 | 15034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/40 | 11195 | 11334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/01/40 | 283013 | 286587 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/41 | 29107 | 29198 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 02/01/41 | 22955 | 22991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/41 | 29374 | 29745 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 05/01/41 | 706826 | 714515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/01/41 | 54997 | 55542 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/41 | 575557 | 587778 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 04/01/33 | 34468 | 35578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 02/01/34 | 5462 | 5639 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/01/35 | 51857 | 53639 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/01/37 | 122444 | 126628 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 03/01/26 | 292 | 299 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 04/01/29 | 28071 | 28765 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 02/01/29 | 270 | 270 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 01/01/30 | 1407 | 1405 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 10/01/37 | 2630 | 2621 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 11/01/37 | 12501 | 12522 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 12/01/37 | 7213 | 7329 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 02/01/38 | 2584 | 2584 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 11/01/38 | 26929 | 27953 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 02/01/39 | 352261 | 370854 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 05/01/28 | 254 | 253 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 07/01/32 | 652 | 666 |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Fannie Mae Interest Strip (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 11/25/41 (b) | 641891 | 100669 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/25/42 (b) | 941248 | 159085 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 11/25/39 (b) | 533260 | 92041 |
| Fannie Mae Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.149%, 02/01/32 (c) | 438385 | 364667 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 466513 | 389460 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 482343 | 402678 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 479281 | 398332 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/61 | 5473563 | 4527735 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.930%, 06/01/30 | 152364 | 138029 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 05/01/29 | 97546 | 91249 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.450%, 03/01/29 | 95774 | 90694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 08/01/42 | 2891263 | 2700515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/01/42 | 209869 | 195979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/42 | 1461255 | 1364898 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/42 | 805868 | 772154 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/01/42 | 556432 | 533132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/43 | 20667 | 19753 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/43 | 525762 | 502385 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/01/58 | 833669 | 810188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/01/59 | 1694642 | 1651104 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 12/01/27 | 1012 | 1008 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 05/01/32 | 4102 | 4158 |
| Fannie Mae REMICS (CMO) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 03/25/42 (d) | 158822 | 139414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.761%, -1 x 1M LIBOR + 6.150%, 03/25/42 (b) (c) | 2583505 | 143423 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.761%, -1 x 1M LIBOR + 6.150%, 12/25/42 (b) (c) | 265996 | 29433 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.161%, -1 x 1M LIBOR + 6.550%, 10/25/41 (b) (c) | 1718934 | 111617 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.261%, -1 x 1M LIBOR + 6.650%, 03/25/42 (b) (c) | 624700 | 38140 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.008%, 01/25/43 (c) | 117683 | 109346 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 07/25/41 | 3119218 | 3170410 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/25/42 | 711632 | 722540 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/25/42 | 415890 | 431665 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/25/39 | 16874 | 17181 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 07/25/42 | 806207 | 850315 |
| Fannie Mae-ACES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.232%, 02/25/27 | 592886 | 548479 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.061%, 05/25/27 (c) | 177801 | 167294 |
| Freddie Mac 15 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/32 | 197104 | 187568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/33 | 1822908 | 1762174 |
| Freddie Mac 20 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/38 | 377155 | 347222 |
| Freddie Mac 20 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 10/01/41 | 729758 | 590436 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.500%, 11/01/41 | 92391 | 75575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 09/01/41 | 2941190 | 2479256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/42 | 2634123 | 2220382 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/01/41 | 157999 | 138956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/38 | 2003852 | 1914764 |
| Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/47 | 482963 | 432317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/01/46 | 270606 | 251713 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/01/43 | 580388 | 555296 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/43 | 1634180 | 1583989 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/01/43 | 1680475 | 1627367 |

---

*See accompanying notes to financial statements.* 

**BHFTII-6** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Freddie Mac 30 Yr. Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/38 | 514922 | $508665 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/47 | 292889 | 286005 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/01/47 | 249180 | 244856 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/47 | 463536 | 455096 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/01/49 | 242918 | 238407 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 08/01/33 | 8759 | 8954 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/40 | 7944 | 8011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/41 | 9425 | 9555 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/01/44 | 17228 | 17391 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 09/01/39 | 96059 | 99505 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.000%, 09/01/30 | 1331 | 1382 |
| Freddie Mac 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/50 | 906800 | 746768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/51 | 2345467 | 1934562 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 03/01/51 | 3583854 | 2942323 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/01/51 | 2163171 | 1789936 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 05/01/51 | 3787127 | 3108237 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 06/01/51 | 4906460 | 4026822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 08/01/51 | 1347689 | 1099011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 11/01/51 | 6206121 | 5062966 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 01/01/52 | 95874 | 78395 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 02/01/52 | 567973 | 465028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 06/01/50 | 129334 | 110776 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/01/50 | 1195987 | 1031246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/50 | 3899308 | 3359126 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/01/50 | 4241991 | 3647854 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/51 | 1207958 | 1032360 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/51 | 544847 | 463188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/51 | 239206 | 206849 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 05/01/51 | 339193 | 290574 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 07/01/51 | 4579894 | 3917637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/01/51 | 3156165 | 2709032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 09/01/51 | 2730871 | 2321080 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/01/51 | 10277303 | 8832959 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 01/01/52 | 23000832 | 19649770 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/01/52 | 1225015 | 1047716 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/01/52 | 661469 | 565726 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/46 | 278240 | 249190 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/48 | 1169553 | 1041481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/01/49 | 3365723 | 3022058 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/01/49 | 743843 | 663260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/50 | 46442 | 41625 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/01/50 | 66035 | 58806 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 05/01/50 | 188354 | 168644 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/01/51 | 263126 | 232971 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 06/01/51 | 85623 | 75953 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/01/51 | 567241 | 502616 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/01/52 | 2700418 | 2375062 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/01/52 | 1072628 | 945467 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/01/47 | 4280843 | 3953808 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/01/48 | 88087 | 81203 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/01/52 | 3918906 | 3586381 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/01/52 | 1254290 | 1147073 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 10/01/51 | 159013 | 149335 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/01/52 | 1052311 | 987985 |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Freddie Mac 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/01/52 | 3300281 | 3099067 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/01/52 | 297311 | 279294 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/01/49 | 205713 | 201575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/01/49 | 365689 | 357842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/01/50 | 27099 | 26474 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/01/52 | 4225934 | 4094366 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/01/36 | 10742 | 10970 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 06/01/41 | 1050338 | 1056288 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/01/52 | 1941259 | 1919681 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/01/36 | 292042 | 302015 |
| Freddie Mac ARM Non-Gold Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.105%, 5Y H15 + 1.284%, 03/01/47 (c) | 269291 | 255455 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.878%, 12M LIBOR + 1.619%, 11/01/47 (c) | 1030591 | 992772 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.009%, 12M LIBOR + 1.628%, 11/01/48 (c) | 3564058 | 3375800 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.091%, 12M LIBOR + 1.621%, 02/01/50 (c) | 1757219 | 1685771 |
|  Freddie Mac Multifamily Structured Pass-Through Certificates<br>0.364%, 12/25/28 (b) (c) | 63363386 | 1190313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.482%, 01/25/34 (b) (c) | 51730721 | 1924978 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.510%, 01/25/29 (b) (c) | 85460108 | 2253498 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.756%, 09/25/27 (b) (c) | 16885042 | 486534 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.851%, 11/25/30 (b) (c) | 26265874 | 1319818 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.882%, 11/25/30 (b) (c) | 34674173 | 1802131 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.291%, 03/25/27 | 4670000 | 4428817 |
|  Freddie Mac Pool<br>2.500%, 07/01/51 | 291519 | 242196 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/01/42 | 411693 | 384546 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/01/44 | 166302 | 155316 |
|  Freddie Mac REMICS (CMO)<br>4.500%, 04/15/32 | 129118 | 127232 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/15/36 | 189434 | 194265 |
|  Freddie Mac STACR REMIC Trust (CMO)<br>4.928%, SOFR30A + 1.000%, 01/25/42 (144A) (c) | 2766983 | 2695937 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.228%, SOFR30A + 1.300%, 02/25/42 (144A) (c) | 2796667 | 2750357 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.428%, SOFR30A + 1.500%, 10/25/41 (144A) (c) | 2270000 | 2156430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.028%, SOFR30A + 2.100%, 10/25/33 (144A) (c) | 980000 | 960865 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.128%, SOFR30A + 2.200%, 05/25/42 (144A) (c) | 1103202 | 1099785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.228%, SOFR30A + 2.300%, 08/25/33 (144A) (c) | 1970000 | 1947651 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.328%, SOFR30A + 2.400%, 02/25/42 (144A) (c) | 3420000 | 3326011 |
|  Ginnie Mae I 30 Yr. Pool<br>3.000%, 09/15/42 | 319580 | 292760 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 10/15/42 | 1736435 | 1589581 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/15/42 | 627234 | 574208 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/15/48 | 2076354 | 1955406 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/15/50 | 346543 | 323410 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/15/50 | 32378 | 30881 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 06/15/36 | 160850 | 168320 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/15/33 | 356584 | 370076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 06/15/31 | 881 | 905 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 08/15/34 | 67990 | 69913 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.500%, 09/15/29 | 528 | 536 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.500%, 06/15/25 | 3544 | 3587 |
| Ginnie Mae II 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 04/20/51 | 567115 | 477782 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, TBA (a) | 100000 | 86636 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/20/49 | 403803 | 352562 |

---

*See accompanying notes to financial statements.* 

**BHFTII-7** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Ginnie Mae II 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/20/51 | 5744150 | $5000913 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 03/20/51 | 5972234 | 5198868 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 04/20/51 | 843451 | 734599 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 10/20/51 | 3424740 | 2971880 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 11/20/51 | 182138 | 157840 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 12/20/51 | 831036 | 720852 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 08/20/52 | 15987171 | 13863215 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/46 | 175536 | 158690 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/47 | 304049 | 272202 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/47 | 70726 | 63976 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 12/20/47 | 754603 | 679508 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/50 | 633985 | 564905 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/20/51 | 113120 | 101656 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 09/20/51 | 9246246 | 8272107 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 11/20/51 | 11992600 | 10724019 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 01/20/52 | 96903 | 88797 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 02/20/52 | 2663181 | 2379746 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 03/20/52 | 1122200 | 1001938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 04/20/52 | 2573946 | 2236090 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/44 | 682321 | 639932 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/45 | 53168 | 49622 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/46 | 139977 | 130856 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/46 | 743838 | 693619 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 04/20/46 | 389372 | 363141 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/46 | 182199 | 170107 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/46 | 309944 | 289218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/46 | 187219 | 174602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/20/46 | 17139 | 16032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 05/20/47 | 2481236 | 2320793 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/48 | 2032692 | 1878238 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 09/20/48 | 473327 | 438527 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/49 | 14781 | 13805 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/20/49 | 122710 | 113786 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 01/20/50 | 1170448 | 1083074 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/50 | 152869 | 144515 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 07/20/50 | 189519 | 175990 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 02/20/52 | 10848206 | 9981378 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 03/20/52 | 490649 | 445961 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 06/20/52 | 590806 | 536997 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, TBA (a) | 1800000 | 1703538 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/45 | 337056 | 326650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/45 | 2795418 | 2692944 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/20/46 | 2010434 | 1927577 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 06/20/47 | 900690 | 864712 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 07/20/47 | 152532 | 146447 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/47 | 430792 | 413602 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 12/20/47 | 166704 | 160053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/20/48 | 155393 | 149465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/20/48 | 426124 | 409138 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/20/48 | 148103 | 142159 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 08/20/48 | 1671001 | 1601353 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 09/20/48 | 465190 | 443957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 11/20/49 | 84192 | 78938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/20/50 | 133413 | 130003 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/20/50 | 108736 | 105711 |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Ginnie Mae II 30 Yr. Pool |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 03/20/50 | 60216 | 58660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 04/20/50 | 470396 | 458345 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, TBA (a) | 3800000 | 3685965 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/20/40 | 196793 | 196408 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/20/40 | 249020 | 248533 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/20/40 | 5594 | 5583 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/20/41 | 47827 | 47734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/20/41 | 306129 | 305531 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/20/47 | 288911 | 284680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/20/48 | 438269 | 431327 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 05/20/48 | 647339 | 636919 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 06/20/48 | 369190 | 363032 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 07/20/48 | 61142 | 59932 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 08/20/48 | 1666938 | 1637687 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 09/20/48 | 178620 | 173336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 10/20/48 | 428689 | 420872 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 01/20/49 | 1115001 | 1082334 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/49 | 306708 | 301021 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 04/20/49 | 199141 | 195011 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 02/20/50 | 268564 | 263252 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 03/20/50 | 180696 | 177470 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.500%, 12/20/50 | 262233 | 257466 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, TBA (a) | 10200000 | 10102251 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 07/20/40 | 202295 | 204995 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 11/20/48 | 68899 | 68883 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 03/20/49 | 85115 | 84834 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 12/20/49 | 128106 | 128220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 01/20/50 | 84872 | 84775 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.000%, 04/20/50 | 69908 | 70169 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, TBA (a) | 7000000 | 7032579 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, TBA (a) | 3900000 | 3953435 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/20/34 | 603 | 637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/20/35 | 927 | 979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/20/36 | 46407 | 48988 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/20/36 | 2204 | 2327 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/20/38 | 125660 | 132694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/20/38 | 302407 | 319250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/20/39 | 1503 | 1586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 05/20/40 | 25852 | 27284 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 06/20/40 | 85805 | 90612 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 08/20/40 | 48003 | 50693 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 09/20/40 | 106143 | 112092 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 10/20/40 | 50649 | 53481 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 11/20/40 | 97587 | 103043 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 01/20/41 | 50267 | 52321 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 03/20/41 | 352100 | 371830 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 07/20/41 | 78846 | 83262 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.000%, 12/20/41 | 37961 | 40084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.500%, 10/20/37 | 119352 | 126384 |
| Government National Mortgage Association |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 09/16/46 (b) (c) | 9145597 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.029%, 03/16/49 (b) (c) | 1283644 | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.051%, 10/16/54 (b) (c) | 10652258 | 21888 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.093%, 04/16/54 (b) (c) | 14013874 | 98511 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.145%, 02/16/53 (b) (c) | 4703087 | 13945 |

---

*See accompanying notes to financial statements.* 

**BHFTII-8** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** | **Agency Sponsored Mortgage-Backed—(Continued)** |
| Government National Mortgage Association |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.147%, 02/16/48 (b) (c) | 1031423 | $6243 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.539%, 03/16/60 (b) (c) | 1453669 | 53926 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.629%, 09/16/55 (b) (c) | 6369546 | 163431 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.633%, 10/16/58 (b) (c) | 11469314 | 407747 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.640%, 02/16/61 (b) (c) | 1376591 | 69898 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.707%, 12/16/59 (b) (c) | 26893360 | 1212017 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.018%, 02/16/46 (b) (c) | 3067680 | 56347 |
|  Government National Mortgage Association (CMO)<br>1.774%, -1 x 1M LIBOR + 6.100%, 08/16/42 (b) (c) | 390427 | 36938 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.297%, -1 x 1M LIBOR + 6.650%, 01/20/40 (b) (c) | 52599 | 595 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.880%, 1M LIBOR + 1.150%, 05/20/70 (c) | 1085411 | 1065856 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.980%, 1M LIBOR + 0.450%, 07/20/70 (c) | 2751061 | 2633167 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/20/49 | 604703 | 541222 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.276%, 1M LIBOR + 0.450%, 07/20/70 (c) | 1929981 | 1850907 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.749%, 1M LIBOR + 0.500%, 07/20/70 (c) | 298178 | 287143 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.765%, 1M LIBOR + 0.250%, 10/20/68 (c) | 1627981 | 1602007 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.222%, 1M LIBOR + 0.380%, 12/20/60 (c) | 9033278 | 8945220 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.242%, 1M LIBOR + 0.400%, 12/20/60 (c) | 1896140 | 1879297 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.242%, 1M LIBOR + 0.400%, 08/20/70 (c) | 56193 | 55568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.272%, 1M LIBOR + 0.430%, 10/20/64 (c) | 3256156 | 3220120 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.322%, 1M LIBOR + 0.480%, 03/20/61 (c) | 1566273 | 1553958 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.342%, 1M LIBOR + 0.500%, 12/20/60 (c) | 16461770 | 16333276 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.092%, 1M LIBOR + 1.250%, 04/20/70 (c) | 122157 | 122316 |
|  Uniform Mortgage-Backed Securities 30 Yr. Pool 5.000%, TBA (a) | 8300000 | 8174744 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, TBA (a) | 4500000 | 4508111 |
|  |  | 595053442 |
| **Federal Agencies—38.0%** |  |  |
|  Fannie Mae Principal Strip |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 05/15/30 | 30000000 | 22037578 |
|  Federal Agricultural Mortgage Corp.<br>0.260%, 10/02/23 | 10000000 | 9676912 |
| Federal Farm Credit Banks Funding Corp. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.160%, 02/10/23 | 10000000 | 9957523 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.200%, 01/04/24 | 10000000 | 9543461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.220%, 09/08/23 | 10000000 | 9682789 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.230%, 01/19/24 | 15000000 | 14299073 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 01/15/25 | 10000000 | 9185389 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.460%, 11/03/25 | 10000000 | 9000056 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 12/01/23 | 30000000 | 28827624 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.680%, 12/20/23 | 10000000 | 9608966 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.780%, 06/16/25 | 10000000 | 9116317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.875%, 11/18/24 | 5000000 | 4679339 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.050%, 11/17/25 | 10000000 | 9132526 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.240%, 09/03/30 | 8000000 | 6242670 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.680%, 09/17/35 | 1195000 | 830866 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 02/25/25 | 22350000 | 21108280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.600%, 04/05/27 | 10000000 | 9406821 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 05/16/24 | 15000000 | 14581692 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.700%, 10/26/27 | 10000000 | 9390143 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.480%, 06/27/42 | 3000000 | 2805626 |
| **Federal Agencies—(Continued)** |  |  |
|  Federal Home Loan Bank<br>0.125%, 08/28/23 | 12000000 | 11639212 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 09/04/25 | 15000000 | 13501591 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 04/14/25 | 14000000 | 12866864 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.750%, 09/12/25 | 10000000 | 9357943 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.125%, 06/09/23 | 7700000 | 7614279 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.500%, 02/13/24 | 10000000 | 9754180 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 12/13/24 | 10000000 | 9679660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.000%, 07/08/24 | 7000000 | 6821306 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 11/16/28 | 35000000 | 33609151 |
| Federal Home Loan Mortgage Corp. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 12/14/29 | 7443000 | 5587385 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 12/17/29 | 5562000 | 4173517 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 12/15/36 | 24765000 | 13034456 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.125%, 10/16/23 | 20000000 | 19289751 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 11/06/23 | 15000000 | 14430701 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 12/04/23 | 10000000 | 9585353 |
|  Federal National Mortgage Association<br>0.625%, 04/22/25 | 5000000 | 4593718 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 09/06/24 | 22000000 | 21343282 |
| Freddie Mac Strips |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 07/15/28 | 5400000 | 4300795 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 07/15/32 | 9000000 | 5978235 |
| Resolution Funding Corp. Interest Strip |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 07/15/26 | 4230000 | 3608799 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 07/15/27 | 8012000 | 6613418 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 01/15/29 | 6988000 | 5396217 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 07/15/29 | 14000000 | 10678175 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 10/15/29 | 14996000 | 11272004 |
| Resolution Funding Corp. Principal Strip |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 01/15/30 | 25000000 | 18256794 |
| &nbsp;&nbsp;&nbsp;&nbsp; Zero Coupon, 04/15/30 | 40000000 | 29019136 |
|  United States Department of Housing and Urban Development<br>2.668%, 08/01/24 | 8000000 | 7747741 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.738%, 08/01/25 | 6000000 | 5740802 |
| United States International Development Finance Corp. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.110%, 05/15/29 | 13000000 | 11568763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.540%, 06/15/30 | 8823778 | 8411868 |
|  |  | 554588747 |
| **U.S. Treasury—10.0%** |  |  |
|  U.S. Treasury Bond<br>3.125%, 11/15/41 | 7000000 | 6048711 |
| U.S. Treasury Inflation Indexed Notes |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.500%, 01/15/28 (e) | 12684000 | 11927176 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.625%, 10/15/27 (e) | 15088350 | 15070658 |
|  U.S. Treasury Notes<br>0.250%, 09/30/23 | 4000000 | 3867031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.250%, 06/15/24 | 23000000 | 21585859 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 01/31/26 | 10000000 | 8897266 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.875%, 06/30/26 | 10400000 | 9299875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.125%, 08/31/28 | 45000000 | 38422265 |

---

*See accompanying notes to financial statements.* 

**BHFTII-9** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**U.S. Treasury & Government Agencies—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **U.S. Treasury—(Continued)** | | |
| U.S. Treasury Notes |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 07/31/26 | 32900000 | $30427359 |
|  |  | 145546200 |
|  Total U.S. Treasury & Government Agencies <br>(Cost $1,411,366,744) |  | 1295188389 |
| **Foreign Government—7.3%** |  |  |
| **Sovereign — 7.3%** |  |  |
|  Colombia Government International Bond<br>5.625%, 02/26/44 (f) | 4840000 | 3549523 |
|  Indonesia Government International Bond<br>4.750%, 02/11/29 | 6280000 | 6296617 |
|  Israel Government AID Bonds<br>5.500%, 09/18/23 | 2000000 | 2008785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 12/04/23 | 33000000 | 33183822 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.500%, 04/26/24 | 21550000 | 21683702 |
|  Mexico Government International Bond<br>4.500%, 04/22/29 (f) | 12280000 | 11710169 |
|  Panama Government International Bond<br>3.750%, 03/16/25 | 5650000 | 5460166 |
|  Peruvian Government International Bonds<br>3.300%, 03/11/41 | 3420000 | 2486475 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.550%, 03/10/51 | 1090000 | 774802 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.600%, 01/15/72 (f) | 1580000 | 1025901 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.550%, 03/14/37 | 320000 | 336953 |
|  Poland Government International Bonds<br>3.250%, 04/06/26 | 5010000 | 4798578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 01/22/24 | 2858000 | 2818274 |
|  Qatar Government International Bond<br>5.103%, 04/23/48 (144A) | 7300000 | 7330164 |
|  Uruguay Government International Bond<br>5.100%, 06/18/50 | 3200000 | 3135482 |
|  Total Foreign Government <br>(Cost $122,899,604) |  | 106599413 |
| **Corporate Bonds & Notes—4.1%** |  |  |
| **Chemicals—0.1%** |  |  |
|  Equate Petrochemical B.V.<br>4.250%, 11/03/26 (144A) | 1540000 | 1471119 |
| **Diversified Financial Services—3.0%** |  |  |
|  Private Export Funding Corp.<br>0.300%, 04/28/23 (144A) | 25000000 | 24695140 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 06/15/25 | 20000000 | 19251932 |
|  |  | 43947072 |
| **Electric—0.6%** |  |  |
|  Enel Chile S.A.<br>4.875%, 06/12/28 | 4000000 | 3897995 |
| **Electric—(Continued)** |  |  |
|  Perusahaan Listrik Negara PT<br>5.450%, 05/21/28 (144A) | 4000000 | 3960000 |
|  |  | 7857995 |
| **Oil & Gas—0.4%** |  |  |
|  Ecopetrol S.A.<br>5.375%, 06/26/26 | 4260000 | 4017819 |
|  Petroleos Mexicanos<br>6.375%, 01/23/45 (f) | 3610000 | 2235239 |
|  |  | 6253058 |
|  Total Corporate Bonds & Notes <br>(Cost $62,771,524) |  | 59529244 |
| **Mortgage-Backed Securities—2.0%** |  |  |
| **Collateralized Mortgage Obligations—2.0%** |  |  |
|  Alternative Loan Trust<br>4.553%, 1M LIBOR + 0.200%, 07/20/46 (c) | 1015365 | 748880 |
|  Banc of America Mortgage Trust<br>3.942%, 07/25/35 (c) | 11844 | 10655 |
|  CIM Trust<br>1.425%, 07/25/61 (144A) (c) | 2663944 | 2345817 |
|  Citigroup Mortgage Loan Trust<br>5.410%, 1Y H15 + 2.400%, 10/25/35 (c) | 27109 | 24952 |
|  Countrywide Home Loan Reperforming Loan REMIC Trust<br>4.809%, 1M LIBOR + 0.420%, 07/25/36 (144A) (c) | 196704 | 186835 |
|  Credit Suisse Mortgage Trust<br>0.830%, 03/25/56 (144A) (c) | 710500 | 549031 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.169%, 03/25/56 (144A) (c) | 611648 | 420615 |
|  CSMC Trust<br>0.938%, 05/25/66 (144A) (c) | 1099947 | 848437 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.756%, 10/25/66 (144A) (c) | 707812 | 579119 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.000%, 10/25/60 (144A) (c) | 895900 | 784529 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.864%, 10/15/66 (c) | 2227385 | 2216335 |
|  Ellington Financial Mortgage Trust<br>3.001%, 01/25/67 (144A) (c) | 950000 | 667543 |
|  GMACM Mortgage Loan Trust<br>3.610%, 11/19/35 (c) | 74520 | 67330 |
|  GS Mortgage-Backed Securities Trust<br>3.750%, 10/25/57 (144A) | 1849079 | 1768127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/25/62 (144A) (c) | 769161 | 687780 |
|  JPMorgan Mortgage Trust<br>3.085%, 06/25/34 (c) | 44625 | 40944 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.500%, 10/25/48 (144A) (c) | 417901 | 362806 |
|  Legacy Mortgage Asset Trust<br>2.250%, 07/25/67 (144A) (g) | 805332 | 720891 |
|  MASTR Adjustable Rate Mortgages Trust<br>2.478%, 02/25/34 (c) | 101993 | 83898 |
|  MASTR Reperforming Loan Trust |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.300%, 05/25/35 (144A) (c) | 1940875 | 1085655 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.000%, 08/25/34 (144A) | 199985 | 151238 |
|  Morgan Stanley Mortgage Loan Trust<br>2.915%, 07/25/35 (c) | 54572 | 47295 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.529%, 1M LIBOR + 0.140%, 06/25/36 (c) | 421414 | 92958 |

---

*See accompanying notes to financial statements.* 

**BHFTII-10** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Mortgage-Backed Securities—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Collateralized Mortgage Obligations—(Continued)** | | |
|  Mortgage Repurchase Agreement Financing Trust<br>5.805%, SOFR30A + 2.000%, 03/30/25 (144A) (c) | 2230000 | $2198372 |
|  New Residential Mortgage Loan Trust<br>1.156%, 11/27/56 (144A) (c) | 604173 | 497290 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.750%, 07/25/59 (144A) (c) | 1404857 | 1305285 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.250%, 09/25/56 (144A) (c) | 1180406 | 1076411 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 02/25/57 (144A) (c) | 1035297 | 973037 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.000%, 05/25/57 (144A) (c) | 1548124 | 1438706 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.250%, 12/25/57 (144A) (c) | 1698795 | 1605475 |
|  NovaStar Mortgage Funding Trust<br>0.412%, 1M LIBOR + 0.380%, 09/25/46 (c) | 446990 | 421868 |
|  OBX Trust<br>1.054%, 07/25/61 (144A) (c) | 740062 | 556249 |
|  Park Capital Management Trust<br>1.510%, 08/25/56 (144A) (c) | 1671548 | 1318370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.071%, 11/25/56 (144A) (c) | 862734 | 714838 |
|  SACO I Trust<br>4.380%, 06/25/21 (144A) (c) | 20087 | 16321 |
|  Structured Asset Mortgage Investments II Trust<br>4.749%, 1M LIBOR + 0.360%, 07/25/46 (c) | 88637 | 72211 |
|  Structured Asset Securities Corp.<br>3.529%, 06/25/35 (144A) (c) | 58868 | 52248 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.739%, 1M LIBOR + 0.350%, 04/25/35 (144A) (c) | 1295831 | 1136694 |
|  Towd Point Mortgage Trust<br>3.000%, 04/25/60 (144A) (c) | 940000 | 699979 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.289%, 1M LIBOR + 1.900%, 05/25/58 (144A) (c) | 950000 | 908691 |
|  Total Mortgage-Backed Securities <br>(Cost $33,940,665) |  | 29483715 |
| **Asset-Backed Securities—0.1%** |  |  |
| **Asset-Backed - Home Equity—0.0%** |  |  |
|  Morgan Stanley Mortgage Loan Trust<br>4.569%, 1M LIBOR + 0.180%, 12/25/36 (c) | 114970 | 45900 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.689%, 1M LIBOR + 0.300%, 03/25/36 (c) | 53252 | 52089 |
|  |  | 97989 |
| **Asset-Backed - Other — 0.1%** |  |  |
|  Securitized Asset Backed Receivables LLC Trust<br>5.004%, 1M LIBOR + 0.615%, 01/25/35 (c) | 817523 | 748087 |
|  Structured Asset Investment Loan Trust<br>5.589%, 1M LIBOR + 1.200%, 08/25/34 (c) | 874066 | 837138 |
|  Structured Asset Securities Corp. Mortgage Loan Trust<br>4.609%, 1M LIBOR + 0.220%, 02/25/36 (144A) (c) | 4564146 | 113027 |
|  |  | 1698252 |
|  Total Asset-Backed Securities <br>(Cost $3,818,666) |  | 1796241 |
| **Short-Term Investment — 0.0%** |  |  |
| **Security Description** | **Principal<br>Amount\*** | **Value** |
| **Repurchase Agreement—0.0%** |  |  |
|  Fixed Income Clearing Corp. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 1.800%, due on 01/03/23 with a maturity value of $698,611; collateralized by U.S. Treasury Note at 2.000%, maturing 04/30/24, with a market value of $712,501. | 698471 | $698471 |
|  Total Short-Term Investments <br>(Cost $698,471) |  | 698471 |
| **Securities Lending Reinvestments (h)—0.2%** | **Securities Lending Reinvestments (h)—0.2%** |  |
| **Repurchase Agreements — 0.1%** |  |  |
|  Goldman Sachs & Co. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $76,332; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 7.625%, maturity dates ranging from 01/24/23 - 11/15/52, and an aggregate market value of $77,822. | 76296 | 76296 |
|  HSBC Securities, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.250%, due on 01/03/23 with a maturity value of $300,142; collateralized by U.S. Treasury Obligations with rates ranging from 0.000% - 2.750%, maturity dates ranging from 02/15/23 - 08/15/42, and an aggregate market value of $306,145. | 300000 | 300000 |
|  National Bank Financial, Inc. <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/03/23 with a maturity value of $87,088; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.497%, maturity dates ranging from 11/30/23 - 03/31/27, and an aggregate market value of $89,124. | 87046 | 87046 |
|  National Bank of Canada <br>Repurchase Agreement dated 12/30/22 at 4.320%, due on 01/06/23 with a maturity value of $50,042; collateralized by U.S. Treasury Obligations with rates ranging from 0.375% - 4.497%, maturity dates ranging from 10/31/23 - 11/15/32, and an aggregate market value of $51,119. | 50000 | 50000 |
|  Societe Generale<br>Repurchase Agreement dated 12/30/22 at 4.260%, due on 01/03/23 with a maturity value of $300,142; collateralized by U.S. Treasury Obligations with rates ranging from 0.250% - 4.250%, maturity dates ranging from 12/31/23 - 02/15/30, and an aggregate market value of $306,000. | 300000 | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.390%, due on 01/03/23 with a maturity value of $2,734; collateralized by various Common Stock with an aggregate market value of $3,041. | 2733 | 2733 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.410%, due on 01/03/23 with a maturity value of $6,143; collateralized by various Common Stock with an aggregate market value of $6,834. | 6140 | 6140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreement dated 12/30/22 at 4.420%, due on 01/06/23 with a maturity value of $50,043; collateralized by various Common Stock with an aggregate market value of $55,660. | 50000 | 50000 |
|  |  | 872215 |

---

*See accompanying notes to financial statements.* 

**BHFTII-11** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Securities Lending Reinvestments (h)—(Continued)** 

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
| **Mutual Funds—0.1%** | | |
|  BlackRock Liquidity Funds FedFund, Institutional Shares<br>4.020% (i) | 100000 | $100000 |
|  Dreyfus Treasury Obligations Cash Management Fund, Institutional Class 4.170% (i) | 200000 | 200000 |
|  Goldman Sachs Financial Square Government Fund, Institutional Shares 4.150% (i) | 200000 | 200000 |
|  Morgan Stanley Liquidity Funds Government Portfolio, Institutional Shares 4.110% (i) | 200000 | 200000 |
|  |  | 700000 |
|  Total Securities Lending Reinvestments <br>(Cost $1,572,215) |  | 1572215 |
|  Total Investments—102.4% <br>(Cost $1,637,067,889) |  | 1494867688 |
|  Other assets and liabilities (net)—(2.4)% |  | (34513432) |
| **Net Assets—100.0%** |  | $1460354256 |

---

\* Principal amount stated in U.S. dollars unless otherwise noted.

(a) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.

(b) Interest only security.

(c) Variable or floating rate security. The stated rate represents the rate at December 31, 2022. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions. For certain asset- and mortgage-backed securities, the coupon rate may fluctuate based on changes of the underlying collateral or prepayments of principal. These securities do not indicate a reference index and spread in their description above.

(d) Principal only security.

(e) Principal amount of security is adjusted for inflation.

(f) All or a portion of the security was held on loan. As of December 31, 2022, the market value of securities loaned was $1,831,004 and the collateral received consisted of cash in the amount of $1,572,215 and non-cash collateral with a value of $354,913. The cash collateral investments are disclosed in the Schedule of Investments and categorized as Securities Lending Reinvestments. The non-cash collateral received consists of U.S. government securities that are held in safe-keeping by the lending agent, or a third-party custodian, and cannot be sold or repledged by the Portfolio. As such, this collateral is excluded from the Statement of Assets and Liabilities.

(g) Security is a "step-up" bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.

(h) Represents investment of cash collateral received from securities on loan as of December 31, 2022.

(i) The rate shown represents the annualized seven-day yield as of December 31, 2022.

(144A) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2022, the market value of 144A securities was $78,162,875, which is 5.4% of net assets.

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts—Long** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount** | **Notional<br>Amount** | **Value/<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  U.S. Treasury Long Bond Futures | 03/22/23 | 112 | USD | 14038500 | $(105583) |
|  U.S. Treasury Note 10 Year Futures | 03/22/23 | 4 | USD | 449188 | (10694) |
|  U.S. Treasury Ultra Long Bond Futures | 03/22/23 | 28 | USD | 3760750 | (124220) |
|  Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | Net Unrealized Depreciation | $(240497) |

---

**Glossary of Abbreviations** 

Currencies

------

(USD)— United States Dollar

Index Abbreviations

------

---

| | |
|:---|:---|
| (H15)— | U.S. Treasury Yield Curve Rate T-Note Constant Maturity Index |
| (LIBOR)— | London Interbank Offered Rate |
| (SOFR30A)— | Secured Overnight Financing Rate 30-Day Average |

---

Other Abbreviations

------

---

| | |
|:---|:---|
| (ARM)— | Adjustable-Rate Mortgage |
| (ACES)— | Alternative Credit Enhancement Securities |
| (CMO)— | Collateralized Mortgage Obligation |
| (REMIC)— | Real Estate Mortgage Investment Conduit |
| (STACR)— | Structured Agency Credit Risk |

---

*See accompanying notes to financial statements.* 

**BHFTII-12** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Schedule of Investments as of December 31, 2022** 

**Fair Value Hierarchy** 

Accounting principles generally accepted in the United States of America ("GAAP") define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, or other market corroborated inputs)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio's own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels. A reconciliation of Level 3 securities, if any, will be disclosed following the fair value hierarchy table. For more information about the Portfolio's policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio's investments as of December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Total U.S. Treasury & Government Agencies\* | $— | $1295188389 | $— | $1295188389 |
|  Total Foreign Government\* |  | 106599413 |  | 106599413 |
|  Total Corporate Bonds & Notes\* |  | 59529244 |  | 59529244 |
|  Total Mortgage-Backed Securities\* |  | 29483715 |  | 29483715 |
|  Total Asset-Backed Securities\* |  | 1796241 |  | 1796241 |
|  Total Short-Term Investment\* |  | 698471 |  | 698471 |
| Securities Lending Reinvestments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  | 872215 |  | 872215 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mutual Funds | 700000 |  |  | 700000 |
|  Total Securities Lending Reinvestments | 700000 | 872215 |  | 1572215 |
|  Total Investments | $700000 | $1494167688 | $— | $1494867688 |
|  Collateral for Securities Loaned (Liability) | $— | $(1572215) | $— | $(1572215) |
| Futures Contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts (Unrealized Depreciation) | $(240497) | $— | $— | $(240497) |

---

\* See Schedule of Investments for additional detailed categorizations.

*See accompanying notes to financial statements.* 

**BHFTII-13** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Statement of Assets and Liabilities** 

------

**December 31, 2022** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments at value (a) (b) | $1494867688 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash collateral for futures contracts | 661200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities sold | 83985770 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares sold | 388315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal paydowns | 58486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 4807244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 6032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 1584774735 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to custodian | 6829 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities loaned | 1572215 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TBA securities purchased | 121520065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fund shares redeemed | 295472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 577694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees | 65427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred trustees' fees | 152442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 230022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 124420479 |
|  **Net Assets** | $1460354256 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Assets Consist of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid in surplus | $1746267610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributable earnings (Accumulated losses) | (285913354) |
|  **Net Assets** | $1460354256 |
|  **Net Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $1150836778 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 295365313 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 14152165 |
|  **Capital Shares Outstanding\*** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | 111819648 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 28841938 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 1379354 |
|  **Net Asset Value, Offering Price and Redemption Price Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | $10.29 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B | 10.24 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class E | 10.26 |

---

\* The Portfolio is authorized to issue an unlimited number of shares.

(a) Identified cost of investments was $1,637,067,889.

(b) Includes securities loaned at value of $1,831,004.

**Statement of Operations** 

------

**Year Ended December 31, 2022** 

---

| | |
|:---|:---|
|  **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest | $32375586 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending income | 10338 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 32385924 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees | 7897012 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 80484 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian and accounting fees | 183869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class B | 830427 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution and service fees—Class E | 23441 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax services | 71343 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal | 45081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reporting | 65176 |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance | 13869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 18619 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 9238895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less management fee waiver | (395348) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 8843547 |
|  **Net Investment Income** | 23542377 |
|  **Net Realized and Unrealized Gain (Loss)** |  |
| Net realized gain (loss) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (35247005) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (3463786) |
|  Net realized gain (loss) | (38710791) |
| Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (148363463) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (473029) |
|  Net change in unrealized appreciation (depreciation) | (148836492) |
|  Net realized and unrealized gain (loss) | (187547283) |
|  **Net Increase (Decrease) in Net Assets From Operations** | $(164004906) |

---

*See accompanying notes to financial statements.* 

**BHFTII-14** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31,<br>2022** | **Year Ended<br>December 31,<br>2021** |
|  **Increase (Decrease) in Net Assets:** |  |  |
|  **From Operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $23542377 | $15318432 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (38710791) | 17252428 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (148836492) | (63539334) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from operations** | (164004906) | (30968474) |
| &nbsp;&nbsp;&nbsp;&nbsp; **From Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (29881117) | (41254397) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B | (6716761) | (9693689) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class E | (335920) | (478984) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total distributions** | (36933798) | (51427070) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Increase (decrease) in net assets from capital share transactions** | (266436445) | 99621919 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total increase (decrease) in net assets** | (467375149) | 17226375 |
|  **Net Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 1927729405 | 1910503030 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | $1460354256 | $1927729405 |

---

**Other Information:** 

**Capital Shares** 

Transactions in capital shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2022** | **Year Ended<br>December 31, 2021** | **Year Ended<br>December 31, 2021** |
|  | **Shares** | **Value** | **Shares** | **Value** |
|  **Class A** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 1219504 | $13184971 | 9339500 | $112010387 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 2867670 | 29881117 | 3544192 | 41254397 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (23993655) | (258436571) | (4858883) | (57220807) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (19906481) | $(215370483) | 8024809 | $96043977 |
|  **Class B** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 3089388 | $33212463 | 6392815 | $75544093 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 647087 | 6716761 | 835663 | 9693689 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (8317215) | (89135628) | (6820034) | (80238796) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (4580740) | $(49206404) | 408444 | $4998986 |
|  **Class E** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales | 62148 | $673994 | 205156 | $2427688 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestments | 32331 | 335920 | 41256 | 478984 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions | (267442) | (2869472) | (367224) | (4327716) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (172963) | $(1859558) | (120812) | $(1421044) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) derived from capital shares transactions |  | $(266436445) |  | $99621919 |

---

*See accompanying notes to financial statements.* 

**BHFTII-15** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Financial Highlights** 

**Selected per share data** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.58 | $12.08 | $11.85 | $11.49 | $11.65 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.16 | 0.10 | 0.20 | 0.29 | 0.25 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.20) | (0.28) | 0.42 | 0.40 | (0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.04) | (0.18) | 0.62 | 0.69 | 0.11 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.25) | (0.32) | (0.39) | (0.33) | (0.27) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.25) | (0.32) | (0.39) | (0.33) | (0.27) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Asset Value, End of Period | $10.29 | $11.58 | $12.08 | $11.85 | $11.49 |
|  **Total Return (%)** (b) | (9.01) | (1.52) | 5.24 | 6.03 | 0.97 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.51 | 0.50 | 0.51 | 0.50 | 0.50 |
|  Net ratio of expenses to average net assets (%) (c) | 0.49 | 0.48 | 0.48 | 0.48 | 0.49 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.48 | 0.83 | 1.69 | 2.48 | 2.19 |
|  Portfolio turnover rate (%) | 103 (d) | 167 (d) | 226 (d) | 208 (d) | 255 (d) |
|  Net assets, end of period (in millions) | $1150.8 | $1525.0 | $1493.8 | $1544.1 | $1581.9 |
|  | **Class B** | **Class B** | **Class B** | **Class B** | **Class B** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.51 | $12.01 | $11.79 | $11.43 | $11.59 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.13 | 0.07 | 0.17 | 0.26 | 0.22 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.18) | (0.28) | 0.40 | 0.39 | (0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.05) | (0.21) | 0.57 | 0.65 | 0.08 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.22) | (0.29) | (0.35) | (0.29) | (0.24) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.22) | (0.29) | (0.35) | (0.29) | (0.24) |
|  **Net Asset Value, End of Period** | $10.24 | $11.51 | $12.01 | $11.79 | $11.43 |
|  **Total Return (%)** (b) | (9.17) | (1.77) | 4.91 | 5.78 | 0.70 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.76 | 0.75 | 0.76 | 0.75 | 0.75 |
|  Net ratio of expenses to average net assets (%) (c) | 0.74 | 0.73 | 0.73 | 0.73 | 0.74 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.24 | 0.58 | 1.43 | 2.23 | 1.94 |
|  Portfolio turnover rate (%) | 103 (d) | 167 (d) | 226 (d) | 208 (d) | 255 (d) |
|  Net assets, end of period (in millions) | $295.4 | $384.8 | $396.6 | $367.9 | $378.1 |

---

*Please see following page for Financial Highlights footnote legend.* 

*See accompanying notes to financial statements.* 

**BHFTII-16** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Financial Highlights** 

**Selected per share data** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class E** | **Class E** | **Class E** | **Class E** | **Class E** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Net Asset Value, Beginning of Period** | $11.54 | $12.03 | $11.81 | $11.45 | $11.61 |
|  **Income (Loss) from Investment Operations** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) (a) | 0.14 | 0.08 | 0.18 | 0.27 | 0.23 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (1.19) | (0.27) | 0.41 | 0.40 | (0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total income (loss) from investment operations | (1.05) | (0.19) | 0.59 | 0.67 | 0.09 |
|  **Less Distributions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from net investment income | (0.23) | (0.30) | (0.37) | (0.31) | (0.25) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (0.23) | (0.30) | (0.37) | (0.31) | (0.25) |
|  **Net Asset Value, End of Period** | $10.26 | $11.54 | $12.03 | $11.81 | $11.45 |
|  **Total Return (%)** (b) | (9.12) | (1.60) | 5.01 | 5.88 | 0.80 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Gross ratio of expenses to average net assets (%) | 0.66 | 0.65 | 0.66 | 0.65 | 0.65 |
|  Net ratio of expenses to average net assets (%) (c) | 0.64 | 0.63 | 0.63 | 0.63 | 0.64 |
|  Ratio of net investment income (loss) to average net assets (%) | 1.34 | 0.69 | 1.54 | 2.33 | 2.04 |
|  Portfolio turnover rate (%) | 103 (d) | 167 (d) | 226 (d) | 208 (d) | 255 (d) |
|  Net assets, end of period (in millions) | $14.2 | $17.9 | $20.1 | $19.5 | $20.9 |

---

(a) Per share amounts based on average shares outstanding during the period.

(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable
contracts. If these charges were included, the returns would be lower.

(c) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

(d) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 43%, 70%,100%, 76%, and 79% for the years ended December 31, 2022, 2021, 2020, 2019, and
2018, respectively.

*See accompanying notes to financial statements.* 

**BHFTII-17** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022** 

**1. Organization** 

Brighthouse Funds Trust II (the "Trust") is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust, which is managed by Brighthouse Investment Advisers, LLC ("Brighthouse Investment Advisers" or the "Adviser"), currently offers twenty-nine series (the "Portfolios"), each of which operates as a distinct investment vehicle of the Trust. The series included in this report is Western Asset Management U.S. Government Portfolio (the "Portfolio"), which is diversified. Shares of the Portfolio are not offered directly to the general public and are currently available only to separate accounts of insurance companies, including insurance companies affiliated with the Adviser (together, the "Insurance Companies").

The Portfolio has registered and offers three classes of shares: Class A, B and E shares. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio, and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution plan and such distribution expenses are allocated to the corresponding Class of shares.

**2. Significant Accounting Policies** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to December 31, 2022 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946- Financial Services- Investment Companies. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

**Investment Valuation and Fair Value Measurements -** The Portfolio values its investments for purposes of calculating its net asset value ("NAV") using procedures that allow for a variety of methodologies to be used to value the Portfolio's investments. The specific methodology used for an investment may vary based on the market data available for a specific investment at the time the Portfolio calculates its NAV or based on other considerations. The procedures also permit a level of judgment to be used in the valuation process.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. Treasury and U.S. government agencies; foreign sovereign issues; and non-U.S. bonds, are generally valued based upon evaluated or composite bid quotations obtained from third-party pricing services and/or brokers and dealers selected by the Adviser (each a "pricing service"). Such pricing services may use matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, rates of prepayment, credit risks/spreads, default rates, reported trades, broker-dealer quotes and quoted prices for similar assets. Short-term obligations with a remaining maturity of sixty days or less may be valued at amortized cost in the absence of market quotes, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Floating rate loans are generally valued based upon an evaluated or composite average of aggregate bid and ask quotations supplied by brokers or dealers, as obtained from the pricing service. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage- and asset-backed securities are generally valued based upon evaluated or composite bid quotations obtained from pricing services selected by the Adviser. These securities are usually issued as separate tranches, or classes, of securities within each deal. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche and incorporate deal collateral performance, as available. Mortgage- and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock, that are traded on a securities exchange on a valuation date are generally valued at their last quoted sale price or official closing price on the primary exchange for such security, or, if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter ("OTC") are generally valued at the last reported bid price. In the event of a major exchange closing during the trading day, the Adviser may use other market information obtained from quotation reporting systems, established market makers, or pricing services in valuing the securities. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the time as of which the Portfolio determines its NAV to account for the market

**BHFTII-18** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

movement between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. The Portfolio may use a systematic fair valuation model provided by a pricing service to value securities principally traded in these foreign markets to adjust for possible market movements or other changes that may occur between the close of the foreign exchanges and the time as of which the Portfolio determines its NAV. Foreign equity securities valued using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets or valued in reference to similar instruments traded on active markets are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported NAV per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Futures contracts that are traded on commodity exchanges are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy.

If no current market quotation is readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures and under the general supervision of the Board of Trustees (the "Board" or "Trustees") of the Trust. A market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Portfolio can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.

Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated Brighthouse Investment Advisers, acting through its Valuation Committee ("Committee"), as the Portfolio's "valuation designee" to perform the Portfolio's fair value determinations, subject to the Board's oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Brighthouse Investment Advisers' fair value determinations.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the Custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities, or a combination of these and other methods.

**Foreign Currency Translation -** The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies, and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income, and expenses are translated on the respective dates of such transactions. Because the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar-equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

**Investment Transactions and Related Investment Income -** Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

**Dividends and Distributions to Shareholders -** The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between distributable earnings (accumulated losses) and paid in surplus. These adjustments have no impact on net assets or the results of operations.

**Income Taxes -** It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies, and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio's federal tax returns remain subject to examination by the Internal

**BHFTII-19** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

Revenue Service for three fiscal years after the returns are filed. As of December 31, 2022, the Portfolio had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure.

**Due to Custodian -** Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the Custodian at the current rate of interest charged by the Custodian for secured loans. This obligation is payable on demand to the Custodian. The Custodian has a lien on the Portfolio's assets to the extent of any overdraft. At December 31, 2022, the Portfolio had a payment of $6,829 due to the Custodian pursuant to the foregoing arrangement. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value and such inputs would be considered Level 2 in the fair value hierarchy at December 31, 2022. The Portfolio's average overdraft advances during the year ended December 31, 2022 were not significant.

**Mortgage Dollar Rolls -** The Portfolio may enter into mortgage "dollar rolls" in which a Portfolio sells to-be-announced ("TBA") mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed-upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

**Mortgage-Related and Other Asset-Backed Securities -** The Portfolio may invest in mortgage-related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations ("CMOs"), commercial mortgage-backed securities, CMO residuals, stripped mortgage-backed securities ("SMBS"), and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market's perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or "IO" class), while the other class will receive all of the principal (the principal-only or "PO" class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage-related and other asset-backed securities held by the Portfolio are included in the Portfolio's Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

**TBA Purchase and Forward Sale Commitments -** The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to the settlement date, which is in addition to the risk of decline in the value of the Portfolio's other assets. TBA forward sale commitments are valued at the current market value of the underlying securities, according to the procedures described under "Investment Valuation and Fair Value Measurements".

**When-Issued and Delayed-Delivery Securities -** The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions will occur beyond the customary settlement period. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the Portfolio is not entitled to any of the interest earned prior to settlement.

**Repurchase Agreements -** The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), or Global Master Repurchase Agreement ("GMRA"), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the Custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying

**BHFTII-20** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

securities collateralizing any repurchase agreements. It is the Portfolio's policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA or GMRA gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At December 31, 2022, the Portfolio had direct investments in repurchase agreements with a gross value of $698,471. Additionally, the Portfolio invested cash collateral for loans of portfolio securities in repurchase agreements with a gross value of $872,215. The combined value of all repurchase agreements is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2022.

**Securities Lending -** The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur, any interest earned, and any dividends declared during the term of the loan, would accrue to the account of the Portfolio.

The Trust has entered into a Non-Custodial Securities Lending Agreement with JPMorgan Chase Bank, N.A. (the "Lending Agent"). Under the agreement, the Lending Agent is authorized to loan portfolio securities on the Portfolio's behalf. In exchange, the Portfolio generally receives cash, U.S. Government securities, letters of credit, or other collateral deemed appropriate by the Adviser. The Portfolio receives collateral equal to at least 102% of the market value for loans secured by government securities or cash in the same currency as the loaned shares and 105% for all other loaned securities at each loan's inception. Collateral representing at least 100% of the market value of the loaned securities is maintained for the duration of the loan. Any cash collateral received by the Portfolio is generally invested by the Lending Agent in short-term investments, which may include certificates of deposit, commercial paper, repurchase agreements, including repurchase agreements with respect to equity securities, time deposits, master demand notes and money market funds. The market value of investments made with cash collateral received are disclosed in the Schedule of Investments and the valuation techniques are described in Note 2. The value of the securities on loan may change each business day. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower is required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. A portion of the income earned on the collateral is rebated to the borrower of the securities and the remainder is split between the Lending Agent and the Portfolio. On loans collateralized by U.S. government securities, a fee is received from the borrower and is allocated between the Portfolio and the Lending Agent.

Income received by the Portfolio in securities lending transactions during the year ended December 31, 2022 is reflected as securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2022 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2022.

The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The Lending Agent shall indemnify the Portfolio in the case of default of any securities borrower, subject to the terms of the Non-Custodial Securities Lending Agreement.

The following table provides a breakdown of transactions accounted for as secured borrowings, the gross obligations by the type of collateral pledged, and the remaining contractual maturities of those transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** | **Remaining Contractual Maturity of the Agreements<br>As of December 31, 2022** |
| <br>**Securities Lending Transactions** | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **31 - 90<br>Days** | **Greater than<br>90 days** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds & Notes | $(336600) | $— | $— | $— | $(336600) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Government | (1235615) |  |  |  | (1235615) |
|  **Total Borrowings** | $**(1572215)** | $**—** | $**—** | $**—** | $**(1572215)** |
|  Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | Gross amount of recognized liabilities for securities lending transactions | $(1572215) |

---

**3. Investments in Derivative Instruments** 

**Futures Contracts -** The Portfolio may buy and sell futures contracts as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices, and foreign

**BHFTII-21** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount ("initial margin") equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities, which is returned when the Portfolio's obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as cash collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments ("variation margin") are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. If futures contracts are exchange-traded, the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio's ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2022 by category of risk exposure:

---

| | | |
|:---|:---|:---|
|  | **Liability Derivatives** | **Liability Derivatives** |
| **Risk Exposure** | **Statement of Assets & <br>Liabilities Location** | **Fair Value** |
|  Interest Rate | Unrealized depreciation on futures contracts (a) | $240497 |

---

(a) Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day's variation margin is reported within the Statement of Assets and
Liabilities.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2022:

---

| | |
|:---|:---|
| **Statement of Operations Location—Net Realized Gain (Loss)** | **Interest Rate** |
|  Futures contracts | $(3463786) |
| **Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)** | **Interest Rate** |
|  Futures contracts | $(473029) |

---

For the year ended December 31, 2022, the average notional par or face amount outstanding for each derivative type was as follows:

---

| | |
|:---|:---|
| **Derivative Description** | **Average<br>Notional Par or<br>Face Amount‡** |
|  Futures contracts long | $43157449 |
|  Futures contracts short | (24908511) |

---

‡ Averages are based on activity levels during the period for which the amounts are outstanding.

**4. Certain Risks** 

In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist. Those risks include:

*Market Risk:* The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; currency, interest rate, and price fluctuations, or other factors including terrorism, war, natural disasters and the spread of infectious illness including epidemics or pandemics such as the COVID-19 pandemic. These events may also adversely affect the liquidity of securities held by the Portfolio.

In addition, geopolitical and other risks, including environmental and public health risks, may add to instability in world economies and markets generally. The COVID-19 pandemic has resulted in travel restrictions and disruptions, closed borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event cancellations and restrictions, service cancellations or reductions, disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, as well as general concern and uncertainty that has negatively affected the

**BHFTII-22** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

economic environment. The impact of this pandemic, and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy, the financial performance of individual issuers, borrowers and sectors and the health of capital markets and other markets generally in potentially significant and unforeseen ways. This crisis or other public health crises may also exacerbate other pre-existing political, social and economic risks in certain countries or globally. At this time, it is still not possible to estimate the severity or duration of the COVID-19 pandemic, including the severity, duration and frequency of any additional "waves" or emerging variants of COVID-19. It is also still not possible to estimate the duration or frequency of the utilization of any therapeutic treatments and vaccines for COVID-19 or variants thereof. It is likewise still not possible to predict or estimate the longer-term effects of the COVID-19 pandemic, or any actions taken to contain or address the pandemic, on the Portfolio, the financial markets, and economy at large. The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of securities or other assets. Such impacts, which may vary across asset classes, may adversely affect the performance of the Portfolio's investments, the Portfolio and your investment in the Portfolio.

In late February 2022, Russian military forces invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia, Ukraine, Europe, NATO, and the West. Russia's invasion, the responses of countries and political bodies to Russia's actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities such as oil and natural gas. Following Russia's actions, various countries, including the U.S., Canada, the United Kingdom, Germany, and France, as well as the European Union, issued broad-ranging economic sanctions against Russia. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. These sanctions and any additional sanctions or other intergovernmental actions that have been or may be undertaken in the future, against Russia, Russian entities or individuals, or other countries that support Russia's military invasion, may result in the devaluation of Russian currency, a downgrade in the country's credit rating, an immediate freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences to the Russian economy or the Portfolio. The scope and scale of sanctions in place at a particular time may be expanded or otherwise modified in a way that have negative effects on the Portfolio. Sanctions, or the threat of new or modified sanctions, could impair the ability of the Portfolio to buy, sell, hold, receive, deliver or otherwise transact in certain affected securities or other investment instruments. Sanctions could also result in Russia taking counter measures or other actions in response, which may further impair the value and liquidity of Russian securities. These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries, as well as companies in other countries, which could have a negative effect on the performance of the Portfolio, even if the Portfolio does not have direct exposure to securities of Russian issuers.

*Credit and Counterparty Risk:* The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Subadviser may attempt to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment, and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under GMRAs or MRAs, which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Master Securities Forward Transaction Agreements ("MSFTA") govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearinghouse, which is held by the clearinghouse or the Portfolio's futures commission merchant. In a cleared derivative transaction,

**BHFTII-23** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

the Portfolio's counterparty is a clearinghouse rather than a bank or broker. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker's customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker's customers, potentially resulting in losses to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

*LIBOR Replacement Risk:* Many financial instruments use or may use a floating rate based on LIBOR, which is the offered rate at which major international banks can obtain wholesale, unsecured funding. LIBOR may be a significant factor in determining the Portfolio's payment obligations under a derivative investment, the cost of financing to the Portfolio or an investment's value or return to the Portfolio, and may be used in other ways that affect the Portfolio's investment performance. In 2017, the UK Financial Conduct Authority (FCA) announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Index Average for GBP LIBOR). Various financial industry groups have been planning for the transition away from LIBOR and markets are developing in response to these new rates, but there are concerns around liquidity of the new rates and obstacles to converting certain securities and transactions to new rates. Neither the effect of the transition process nor its ultimate success can yet be known. The transition away from and eventual elimination of LIBOR may adversely affect the interest rates on amounts of any payments paid or received with respect to, and liquidity and value of, certain assets and liabilities of the Portfolio that are tied to LIBOR. These may include bank loans, floating rate securities, structured securities (including asset-backed and mortgage-backed securities), other debt securities, derivatives, and financing transactions tied to LIBOR, particularly insofar as the documentation governing such instruments does not include "fall back" provisions addressing the transition from LIBOR. The effect of any changes to, or discontinuation of, LIBOR on the Portfolio will vary depending on, among other things (1) existing fallback or termination provisions in individual contracts and (2) the extent to which industry participants adopt new reference rates and fallbacks for both legacy and new products and instruments. The Subadviser may have discretion to determine a successor or substitute reference rate, including any price or other adjustments to account for differences between the successor or substitute reference rate and previous rate. Such successor or substitute reference rate and any adjustments selected may negatively impact the Portfolio's investments, performance or financial condition, and may expose the Portfolio to additional tax, accounting and regulatory risks. The transition away from LIBOR may affect the value, liquidity or return on certain Portfolio investments, reduce the effectiveness of related transactions such as hedges, and may result in costs incurred in connection with closing out positions and entering into new trades, adversely impacting the Portfolio's overall financial condition or results of operations. The transition process may involve, among other things, increased volatility in markets for instruments that continue to rely on LIBOR. It is difficult to predict the full impact of the transition away from LIBOR and the adoption of alternative reference rates on the Portfolio.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio's prospectus includes a discussion of the principal risks of investing in the Portfolio.

**5. Investment Transactions** 

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2022 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Purchases** | **Sales** | **Sales** |
| **U.S. Government** | **Non-U.S. Government** | **U.S. Government** | **Non-U.S. Government** |
| $1727773936 | $11890006 | $1977758432 | $38840744 |

---

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2022 were as follows:

---

| | |
|:---|:---|
| **Purchases** | **Sales** |
| $1036133230 | $1063405718 |

---

**6. Investment Management Fees and Other Transactions with Affiliates** 

**Investment Management Agreement -** Brighthouse Investment Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with Brighthouse Investment Advisers with respect to the Portfolio. For providing

**BHFTII-24** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

investment management services to the Portfolio, Brighthouse Investment Advisers receives monthly compensation at the following annual rates:

---

| | | |
|:---|:---|:---|
| **Management**<br> **Fees earned by<br>Brighthouse**<br> **Investment Advisers**<br> **for the year ended**<br> **December 31, 2022** | **% per annum** | **Average Daily Net Assets** |
| $7897012 | 0.550% | Of the first $500 million |
|  | 0.450% | On amounts in excess of $500 million |

---

Brighthouse Investment Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Western Asset Management Company (the "Subadviser") is compensated by Brighthouse Investment Advisers to provide subadvisory services for the Portfolio.

The subadvisory fee the Adviser pays to the Subadviser in connection with the investment management of the Portfolio is calculated based on the aggregate average daily net assets of the Portfolio and certain other portfolios of the Brighthouse Funds Trust I that are managed by the Subadviser.

**Management Fee Waiver -** Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2022 to April 30, 2023, to reduce its advisory fees set out above under "Investment Management Agreement" for each class of the Portfolio as follows:

---

| | |
|:---|:---|
| **% per annum reduction** | **Average Daily Net Assets** |
| 0.030% | Of the first $100 million |
| 0.050% | On amounts over $200 million and under $500 million |
| 0.010% | On amount over $1 billion and under $2 billion |
| 0.030% | On amounts in excess of $2 billion |

---

An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are included in the amount shown as a management fee waiver in the Statement of Operations.

Additionally, for the period April 29, 2022 to April 30, 2023, Brighthouse Investment Advisers has contractually agreed to waive a portion of its management fee in an amount equal to the difference, if any, between (a) the subadvisory fee payable by the Adviser to the Subadviser calculated based solely on the assets of the Portfolio and (b) the subadvisory fee payable by the Adviser to the Subadviser calculated using the fee rate that would apply to the combined net assets of the Portfolio and those of Western Asset Management Government Income Portfolio, a series of Brighthouse Funds Trust I also advised by the Subadviser. An identical agreement was in place for the period April 30, 2021 to April 29, 2022. Amounts waived for the year ended December 31, 2022 are included in the amount shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

**Transfer Agency Agreement -** Brighthouse Life Insurance Company serves as the transfer agent for the Trust. Brighthouse Life Insurance Company receives no fees for its services to the Trust.

**Distribution and Service Fees -** The Trust has a distribution agreement with Brighthouse Securities, LLC (the "Distributor") pursuant to which the Distributor serves as the general distributor of shares of each class (each a "Class") of each Portfolio. The Distributor is an affiliate of the Trust. The Trust has adopted a Distribution and Services Plan (the "D&S Plan") relating to Class B, Class D, Class E, Class F and Class G shares of each Portfolio, under Rule 12b-1 under the 1940 Act, pursuant to which the Trust may pay the Distributor a fee (the "Service Fee") at an annual rate not to exceed 0.25% of each such Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F and Class G shares of the Trust. Each Portfolio may not offer shares of each Class. The D&S Plan also authorizes the Trust, on behalf of each of its Portfolios, to pay to the Distributor a distribution fee (the "Distribution Fee" and together with the Service Fee, the "Fees") at an annual rate of up to 0.25% of each Portfolio's average daily net assets attributable to the Class B, Class D, Class E, Class F, and Class G shares in consideration of the services rendered in connection with the sale of such shares by the Distributor. Under the Distribution Agreement with respect to the Trust, Fees are currently paid at an annual rate of 0.25% of average daily net assets in the case of Class B shares, 0.10% of average daily net assets in the case of Class D shares, 0.15% of average daily net assets in the case of Class E shares, 0.20% of average daily net assets in the case of Class F shares and 0.30% of average daily net assets in the case of Class G shares. The D&S Plan is known as a "compensation plan" because the Trust makes payments to the Distributor for services rendered regardless of the actual level of expenditures by the Distributor. Amounts incurred by the Portfolio for the year ended December 31, 2022 are shown as Distribution and service fees in the Statement of Operations.

**BHFTII-25** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

**Deferred Trustee Compensation -** Each Trustee who is not currently an employee of the Adviser or any of its affiliates receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee's deferral account is based on theoretical investments of deferred amounts on the normal payment dates in certain portfolios of the Trust or Brighthouse Funds Trust I, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants' deferral accounts are reflected as a component of Trustees' fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees' fees in the Statement of Assets and Liabilities.

**7. Contractual Obligations** 

Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

**8. Income Tax Information** 

The cost basis of investments for federal income tax purposes at December 31, 2022 was as follows:

---

| | |
|:---|:---|
|  Cost basis of investments | $1650903741 |
|  Gross unrealized appreciation | 844336 |
|  Gross unrealized (depreciation) | (156880389) |
|  Net unrealized appreciation (depreciation) | $(156036053) |

---

The tax character of distributions paid for the years ended December 31, 2022 and 2021 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ordinary Income** | **Ordinary Income** | **Long-Term Capital Gain** | **Long-Term Capital Gain** | **Total** | **Total** |
| **2022** | **2021** | **2022** | **2021** | **2022** | **2021** |
| $36933798 | $51427070 | $— | $— | $36933798 | $51427070 |

---

As of December 31, 2022, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Undistributed<br>Ordinary<br>Income** | **Undistributed<br>Long-Term<br>Capital Gain** | **Net<br>Unrealized<br>Appreciation<br>(Depreciation)** | **Accumulated<br>Capital<br>Losses** | **Total** |
| $32561048 | $– $| (156036054) | $(162285907) | $(285760913) |

---

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses.

As of December 31, 2022, the Portfolio had accumulated short-term capital losses of $33,463,458 and accumulated long-term capital losses of $128,822,449.

**9. Recent Accounting Pronouncement** 

In January 2021, the FASB issued Accounting Standards Update No. 2021-01 ("ASU 2021-01"), "Reference Rate Reform (Topic 848)". ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, as regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective through December 31, 2022, for all entities. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Management expects that the adoption of the guidance will not have a material impact on the Portfolio's financial statements.

**BHFTII-26** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Notes to Financial Statements—December 31, 2022—(Continued)** 

In June 2022, FASB issued Accounting Standards Update 2022-03—Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in Topic 820 to indicate that a contractual sale restriction should not be considered in the fair value of an equity security subject to such a restriction, and requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. ASU 2022-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. ASU 2022-03 will only be applicable to an equity security in which the contractual arrangement that restricts its sale is executed or modified on or after the adoption date. Management is currently evaluating the impact of applying this update.

**BHFTII-27** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Report of Independent Registered Public Accounting Firm** 

To the Board of Trustees of Brighthouse Funds Trust II and Shareholders of the Western Asset Management U.S. Government Portfolio:

**Opinion on the Financial Statements and Financial Highlights** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Western Asset Management U.S. Government Portfolio (the "Fund") (one of the funds constituting the Brighthouse Funds Trust II), as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Western Asset Management U.S. Government Portfolio as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 24, 2023

We have served as the auditor of one or more Brighthouse investment companies since 1983.

**BHFTII-28** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers** 

**MANAGEMENT OF THE TRUSTS** 

The Boards of Trustees (the "Board") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("Trust I" and "Trust II", respectively, and collectively the "Trusts") supervise the Trusts and are responsible for representing the interests of shareholders. The Trustees, the Chairman of the Board and the Chairmen of each subcommittee are the same for both Trusts. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios' activities, reviewing, among other things, each Portfolio's performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust's day-to-day operations.

**Trustees and Officers** 

The Trustees and executive officers of the Trusts, as well as their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o Brighthouse Funds, 125 High Street, Suite 732, Boston, Massachusetts 02110. Each Trustee who is deemed an "interested person," as such term is defined in the 1940 Act, is referred to as an "Interested Trustee." Those Trustees who are not "interested persons," as such term is defined in the 1940 Act, are referred to as "Independent Trustees." There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the Trusts' respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts' respective organizational documents and policies adopted by the Board of each Trust from time to time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
| **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** | **Interested Trustee** |
|  John Rosenthal\* (1960) | Trustee | Indefinite; From May 2016 (Trust I and Trust II) to present | Chief Investment Officer, Brighthouse<br> Financial, Inc. (2016 to present). | 73 |  |
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |
|  Dawn M. Vroegop (1966) | Trustee and<br> Chair of the Board | Indefinite; From December 2000 (Trust I)/May 2009 (Trust II) to present as Trustee; From May 2016 (Trust I and Trust II) until present as Chair | Private Investor. | 73 | Trustee, Driehaus Mutual Funds (8 portfolios).\*\* |
|  Stephen M. Alderman (1959) | Trustee | Indefinite; From December 2000 (Trust I)/April 2012 (Trust II) to present | Vice President and General Counsel, IHR Aerial Solutions, LLC;<br>Until 2022, General Counsel, Illini Hi-Reach, Inc.; Until 2020, Shareholder in the law firm of Garfield and Merel, Ltd. | 73 |  |
|  Robert J. Boulware (1956) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Managing Member, Pilgrim Funds, LLC (private equity fund). | 73 | Trustee, Vertical Capital Income Fund (closed-end fund);\*\* Trustee, The Private Shares Fund (closed-end fund);\*\* Until 2021, Director, Mid-Con Energy Partners, LP (energy);\*\* Until 2020, Director, Gainsco, Inc. (auto insurance).\*\* |

---

**BHFTII-29** 

------

**Brighthouse Funds Trust II** 

**Trustees and Officers—(Continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s) During the Past<br>5 Years<sup>(1)</sup>** | **Number of<br>Portfolios<br>in Fund<br>Complex<sup>(2)</sup><br>Overseen<br>by Trustee** | **Other Directorships Held<br>by Trustee During the<br>Past 5 Years<sup>(1)</sup>** |
|  Susan C. Gause (1952) | Trustee | Indefinite; From March 2008 (Trust I)/April 2012 (Trust II) to present | Private Investor. | 73 | Trustee, HSBC Funds (4 portfolios).\*\* |
|  Nancy Hawthorne (1951) | Trustee | Indefinite; From May 2003 (Trust II)/April 2012 (Trust I) to present | Private Investor. | 73 | Director and Chair of the Board of Directors, First Eagle Alternative Capital BDC, Inc.;\*\* Trustee and Chair of the Board of Trustees, First Eagle Global Opportunities Fund;\*\* Director, Avid Technology, Inc.;\*\* |

---

**Officers** 

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position(s)<br>Held with<br>Registrants** | **Term of Office<br>and Length of<br>Time Served** | **Principal Occupation(s)<br>During the Past 5 Years<sup>(1)</sup>** |
| **Executive Officers** | **Executive Officers** | **Executive Officers** | **Executive Officers** |
| Kristi Slavin (1973) | President and Chief Executive Officer, of Trust I and Trust II | From May<br>2016<br>(Trust I and<br>Trust II) to<br>present | President, Brighthouse Investment Advisers, LLC (2016-present). |
| Alan R. Otis (1971) | Chief Financial<br> Officer and Treasurer, of Trust I and Trust II | From<br> November 2017<br>(Trust I and<br>Trust II) to<br>present | Executive Vice President, Brighthouse Investment Advisers, LLC (2017-present); formerly, Vice President, Brighthouse Investment Advisers, LLC (2012-2017); Assistant Treasurer, Trust I and Trust II (2012-2017). |
| Michele H. Abate (1968) | Secretary, of Trust I and Trust II | From<br>February<br>2023<br>(Trust I and<br>Trust II) to<br>present | Senior Vice President and Assistant Secretary, Brighthouse Investment Advisers, LLC (2020-present); Assistant Secretary, Trust I and Trust II (2020-2023). Vice President, Brighthouse Life Insurance Company (2019-present); Vice President, Brighthouse Life Insurance Company of NY (2020-present); Vice President (2020-present) and Assistant Secretary (2012-present), New England Life Insurance Company. |
| Jeffrey P. Halperin (1967) | Chief Compliance Officer ("CCO"), of Trust I and Trust II | From<br>December<br>2022<br>(Trust I and<br>Trust II) to<br>present | Chief Compliance Officer, Brighthouse Financial, Inc. (2016-present); Chief Compliance Officer, Brighthouse Investment Advisers, LLC (2022-present). Vice President, General Counsel (2019-present) and Chief Compliance Officer (2016-present), Brighthouse Securities, LLC); Vice President and Chief Compliance Officer, Brighthouse Life Insurance Company (2017-present); Director (2022-present) and Vice President (2016-present), Brighthouse Life Insurance Company of NY; Director (2015-present), Vice President and Chief Compliance Officer (2017-present), New England Life Insurance Company. |
| Anna Koska (1981) | Vice President, of Trust I and Trust II | From June<br>2022<br>(Trust I and<br>Trust II) to<br>present | Vice President, Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2022-present); Director of Investment and Advisory Services, Brighthouse Investment Advisers, LLC (2019-2022); Senior Portfolio Analyst, Brighthouse Investment Advisers, LLC (2017-2019). |

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\* Mr. Rosenthal is an "interested person" of the Trusts because of his position with Brighthouse Financial, Inc. ("Brighthouse Financial"), an affiliate of BIA.

\*\* Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934, as amended.

(1) Previous positions during the past five years with the Trusts, MetLife, Inc. or the Adviser are omitted if not materially
different.

(2) The Fund Complex includes 44 Trust I Portfolios and 29 Trust II Portfolios.

**BHFTII-30** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements** 

At a meeting held on November 29-30, 2022 (the "<u>November Meeting</u>"), the Boards of Trustees (the "<u>Board</u>") of Brighthouse Funds Trust I and Brighthouse Funds Trust II ("<u>BFT I</u>" and "<u>BFT II</u>," respectively, and collectively, the "<u>Trusts</u>"), including a majority of the Trustees who are not "interested persons" of the Trusts (the "<u>Independent Trustees</u>") under the Investment Company Act of 1940 (the "<u>1940 Act</u>"), approved the continuation of the Trusts' advisory agreements (each an "<u>Advisory Agreement</u>") with Brighthouse Investment Advisers, LLC (the "<u>Adviser</u>") and the applicable sub-advisory agreements (each a "<u>Sub-Advisory Agreement</u>" and collectively with the Advisory Agreement, the "<u>Agreements</u>") between the Adviser and the investment sub-advisers (each a "<u>Sub-Adviser</u>," and collectively, the "<u>Sub-Advisers</u>") for the series of the Trusts (each a "<u>Portfolio</u>," and collectively, the "<u>Portfolios</u>") for the annual contract renewal period from January 1, 2023 through December 31, 2023.

The Board met with personnel of the Adviser on October 26-27, 2022 (the "October Meeting") for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements, including consideration to information that the Adviser and Sub-Advisers had provided for the Board's review at the request of the Independent Trustees. At that meeting, the Adviser reviewed with the Board the performance and fees experienced by each Portfolio, as well as other information. During and after the October Meeting, the Independent Trustees requested additional information and clarifications that the Adviser addressed at the November Meeting (the October Meeting and the November Meeting are referred to collectively as, the "Meetings"). Throughout the year, the Independent Trustees were advised by independent legal counsel, including during the contract renewal process, and they met with independent legal counsel in executive sessions outside of the presence of management.

In considering the continuation of the Agreements, the Board reviewed a variety of materials that were provided for the specific purpose of assisting the Board in the renewal process, along with various information and materials that were provided to and discussed with the Board throughout the year, at regularly scheduled Board meetings. In particular, information for each Portfolio included, but was not limited to, reports on investment performance, expenses, legal and compliance matters, and asset pricing. Information about the Adviser and each Sub-Adviser included, but was not limited to, reports on the business, operations, and performance of the Adviser and the Sub-Advisers and reports that the Adviser and Sub-Advisers had prepared specifically for the renewal process. The Board also reviewed information with respect to the effect of the ongoing COVID-19 pandemic on the operations of the Adviser and Sub-Advisers, and considered the Adviser's assessments of the Sub-Advisers' services and operations during the pandemic. The Board observed that the Adviser had implemented a hybrid working framework in the normalized environment as personnel returned to the office.

In considering the continuation of the Agreements, the Board also reviewed, among other things, a report for each Portfolio that was prepared by Broadridge ("<u>Broadridge</u>"), an independent organization, which set forth comparative performance and expense information for each Portfolio. In addition, the Independent Trustees reviewed a report that was prepared by JDL Consultants, LLC ("<u>JDL</u>"), an independent consultant to the Independent Trustees, which examined the Broadridge reports for each Portfolio ("<u>JDL Report</u>"). The Independent Trustees met in executive session with representatives of JDL during the October Meeting to review the JDL Report.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent, and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment services provided to and the performance of each Portfolio was such that each Agreement should continue, and that the fees paid by each Portfolio to the Adviser appeared to be reasonable in light of the nature, extent, and quality of the services provided by the Adviser and each Sub-Adviser. Further, the Board concluded that the Adviser's profitability in providing services under the Advisory Agreements did not appear unreasonable in light of the nature, extent, and quality of the services provided by the Adviser. The Board reviewed the extent to which the investment advisory fees paid by the Portfolios shared economies of scale with investors or entailed the potential to share economies of scale with investors and concluded that those considerations generally supported the renewal of each Agreement. Finally, the Board considered the Adviser's recommendation that it approve the renewal of each Sub-Advisory Agreement.

In approving the continuation of each Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished, and each Trustee placed varying degrees of importance on the various pieces of information that were provided to them. The Board evaluated the information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following paragraphs provide more information about some of the primary factors that were relevant to the Board's decisions. The Board did not identify any single factor as determinative, and the Trustees generally attributed different weights to various factors for the various Portfolios.

*Nature, extent and quality of services.* The Board evaluated the nature, extent, and quality of the services that the Adviser and the Sub-Advisers, as relevant, provided to the Portfolios. The Board considered the Adviser's services as investment manager to the

**BHFTII-31** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

Portfolios, including its services relating to the hiring and oversight of the Sub-Advisers and, in particular, their investment programs and personnel, succession management of key personnel, trading practices, compliance programs and personnel, risk management, and liquidity risk management, among other things. The Adviser's services in coordinating and overseeing the activities of the Trusts' other service providers were also considered. The Board also considered the systems and processes required by the Adviser to meet additional regulatory and compliance requirements resulting from U.S. Securities and Exchange Commission and other regulatory initiatives, including related to liquidity, valuation, and derivatives risk management. The Board considered information received from the Trusts' Chief Compliance Officer regarding the Portfolios' compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act, and relevant aspects of the Sub-Advisers' compliance policies and procedures. The Board also noted that it was the practice of the Adviser's investment, compliance, and legal staff to conduct regular and periodic meetings (through various media) with the Sub-Advisers throughout the year in order to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser routinely prepare and present reports to the Board regarding those meetings. In addition, during the Meetings and throughout the year, the Board considered the expertise, experience, and performance of the personnel of the Adviser who performed the various services that are mentioned above.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser prepared for the Board's review. The Board considered each Sub-Adviser's investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser's responsibilities include, among other things, the development and maintenance of an investment program for the applicable Portfolio, the selection of investments and the placement of orders for the purchase and sale of such assets, and the implementation of compliance controls related to the performance of these services. The Board considered, based on the information provided, each Sub-Adviser's current level of staffing, business continuity plan and information security program, including in light of the ongoing COVID-19 pandemic, work-from-home environment and recent geopolitical concerns. The Board also considered the Sub-Adviser's compensation program for its personnel, its overall resources, and information with respect to any recent turnover of key personnel at the Sub-Adviser. The Board reviewed each Sub-Adviser's investment experience, as well as information provided regarding the qualifications, background, and responsibilities of the Sub-Adviser's investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, each Sub-Adviser's compliance program, actions taken in response to regulatory developments, including SEC rulemaking, and any compliance matters involving a Sub-Adviser that had been brought to the Board's attention during the year.

*Performance*. The Board placed emphasis on the performance of each Portfolio in the context of the performance of the relevant markets in which the Portfolio invests. The Board considered the Adviser's quarterly presentations to the Board of detailed information about each Portfolio's investment strategies and performance results and composition, including discussions regarding the relevant effects of market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing each Portfolio's investment performance to that of comparable funds underlying variable insurance products (the "<u>Performance Universe</u>"), and the JDL Report. The Board also compared the performance of each Portfolio to that of comparable funds and other accounts that were managed by the relevant Sub-Adviser, to the extent such information was available. The Board considered each Portfolio's performance for periods subsequent to the performance period covered by the Broadridge reports, and considered the Adviser's assessment of the same. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including, in particular, that notable differences may exist between a Portfolio and the other funds in a Broadridge category (for example, with respect to investment strategies) and that the results of the performance comparisons may vary depending on (i) the end dates for the performance periods that were selected and (ii) the selection of the peer groups.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser's focus on each Sub-Adviser's performance and that the Adviser had been active in monitoring and responding to any performance issues with respect to the Portfolios.

*Fees and Expenses*. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board reviewed and considered the information in the JDL Report concerning fees and expenses. The Board also reviewed and considered the Broadridge report for each Portfolio, which included comparisons of the Portfolio's contractual management and sub-adviser fees (at December 31, 2021 and various asset levels), and total expenses, with those of its peers, including a broad group of peer funds ("<u>Expense Universe</u>"), a narrower group of peer funds ("<u>Expense Group</u>"), a broad group of peer sub-advised funds ("<u>Sub-advised Expense Universe</u>"), and a narrower group of peer sub-advised funds ("<u>Sub-advised Expense Group</u>"). The Board considered that Broadridge selected the peer funds, which were similarly situated funds underlying variable insurance products that Broadridge deemed to be comparable to the Portfolios. The Board compared the fee payable to a Sub-Adviser by the Adviser with

**BHFTII-32** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and other accounts, to the extent such information was available. The Board considered that the fee and expense information in the Broadridge report for each Portfolio reflected information as of the Portfolio's most recent fiscal year end at the time the Broadridge report was issued and that historical asset levels may differ from current asset levels, particularly in a period of market volatility.

The Board noted that the sub-advisory fees for the Portfolios are negotiated at arm's length by the Adviser and are paid by the Adviser out of its advisory fees. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio's total annual operating expenses.

*Profitability.* The Board examined the profitability to the Adviser of each Advisory Agreement, on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, Brighthouse Securities, LLC, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates of their relationships with the Portfolios, to the extent known, and the Board considered the ability of the Adviser to negotiate with a Sub-Adviser at arm's length. In reviewing the profitability information, the Board recognized that expense allocation methodologies are inherently subjective and various methodologies may be reasonable while producing different results.

*Economies of scale.* The Board considered each Portfolio's fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels, including breakpoints in the Advisory Agreements and any corresponding Sub-Advisory Agreement. The Board noted those Portfolios that did not have breakpoints in their advisory fees and considered management's explanation of the same.

The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. The Board examined, among other data, the effect of a Portfolio's growth in size, and reduction in size, on various fee schedules. The Board also generally noted that if a Portfolio's assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other expenses.

*Other factors.* The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationships with the Trusts. Among the benefits realized by the Adviser, the Board recognized that Brighthouse Securities, LLC, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to help compensate for the provision of shareholder services and distribution activities. The Board considered that a Sub-Adviser may engage in soft dollar transactions in managing a Portfolio. In addition, the Board considered that a Sub-Adviser may be affiliated with registered broker-dealers that may, from time to time, receive brokerage commissions from a Portfolio in connection with the sale of portfolio securities (subject to applicable best execution obligations). The Board also considered that a Sub-Adviser and its affiliates could benefit from the opportunity to provide advisory services to additional portfolios of the Trusts and overall reputational benefits.

The Board considered information from the Adviser and Sub-Advisers pertaining to potential conflicts of interest, and the manner in which any potential conflicts were mitigated. In its review, the Board considered information regarding various business relationships among the Adviser and its affiliates and various Sub-Advisers and their affiliates. The Board also considered information about services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities. The Board considered representations from the Adviser that such business relationships and any payments were not considered in the Adviser's recommendation to renew any of the Sub-Advisory Agreements.

\* \* \* \*

*Western Asset Management U.S. Government Portfolio.* The Board also considered the following information in relation to the Agreements with the Adviser and Western Asset Management Company, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio's performance, the Board also considered that the Portfolio underperformed the median of its Performance Universe and the average of its Morningstar Category for the one-year period ended June 30, 2022 and outperformed the median of its Performance Universe and the average of its Morningstar Category for the three- and five-year periods ended June 30, 2022. The Board further considered that the Portfolio underperformed its benchmark, the Bloomberg U.S. Intermediate Government Bond Index, and its blended benchmark for the one- and five-year periods ended October 31, 2022 and outperformed the same benchmarks for the three-year period ended October 31, 2022. The Board took into account management's discussion of the Portfolio's performance, including with respect to prevailing market conditions. The Board also noted the presence of certain management fee waivers in effect for the Portfolio.

**BHFTII-33** 

------

**Brighthouse Funds Trust II** 

**Western Asset Management U.S. Government Portfolio** 

**Board of Trustees' Consideration of Advisory and Sub-Advisory Agreements—(Continued)** 

The Board also considered that the Portfolio's actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio's contractual management fees were below the asset-weighted average of the Investment Classification/Morningstar Category selected by Broadridge at the Portfolio's current size. The Board also noted that the Portfolio's contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio's current size.

**BHFTII-34** 

------

(b) Not applicable.

**Item 2. Code of Ethics.** 

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions (the "Code of Ethics"). During the period covered by this report, no material amendments were made to the provisions of the Code of Ethics, nor did the registrant grant any waivers, including any implicit waivers, from any provision of the Code of Ethics.

**Item 3. Audit Committee Financial Expert.** 

The registrant's Board of Trustees has determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its audit committee. Robert J. Boulware, Susan C. Gause, Nancy Hawthorne, and Dawn M. Vroegop have each been determined to be an "audit committee financial expert" and each is "independent" (as each term is defined in Item 3 of Form N-CSR).

**Item 4. Principal Accountant Fees and Services.** 

Information provided in response to Item 4 includes amounts billed during the applicable time period for services rendered by Deloitte & Touche LLP ("Deloitte"), the registrant's principal accountant.

(a) Audit Fees

The aggregate fees billed for professional services rendered by Deloitte for the audit of the registrant's annual financial statements and for services that are normally provided by Deloitte in connection with statutory and regulatory filings for the fiscal years ended December 31, 2021 and December 31, 2022 were $1,373,001 and $1,417,863, respectively.

(b) Audit-Related Fees

During the fiscal years ended December 31, 2021 and December 31, 2022, Deloitte billed $0 and $0, respectively, for assurance and related services that relate directly to the operations and financial reporting of the registrant, the registrant's investment adviser or any other entity controlling, controlled by, or under common control with the registrant's investment adviser that provides ongoing services to the registrant. Represent fees for services rendered to the registrant for 17f-2 security count procedures for select portfolios for the years ended December 31, 2021 and 2022.

(c) Tax Fees

The aggregate fees billed for professional services rendered by Deloitte for tax compliance, tax advice and tax planning in the form of preparation of excise filings and income tax returns for the fiscal years ended December 31, 2021 and December 31, 2022 were $177,850 and $184,970, respectively. Represent fees for services rendered to the registrant for review of tax returns for the fiscal years ended December 31, 2021 and December 31, 2022.

During the fiscal years ended December 31, 2021 and December 31, 2022, no fees for tax compliance, tax advice or tax planning services that relate directly to the operations and financial reporting of the registrant were billed by Deloitte to the registrant's investment adviser or any other entity controlling, controlled by, or under common control with the registrant's investment adviser that provides ongoing services to the registrant.

------

(d) All Other Fees

The registrant was not billed for any other products or services provided by Deloitte for the fiscal years ended December 31, 2021 and December 31, 2022 other than the services reported in paragraphs (a) through (c) above.

During the fiscal years ended December 31, 2021 and December 31, 2022, no fees for other products or services that relate directly to the operations and financial reporting of the registrant, other than the services reported in paragraphs (a) through (c) above, were billed by Deloitte to the registrant's investment adviser or any other entity controlling, controlled by, or under common control with the registrant's investment adviser that provides ongoing services to the registrant.

(e)(1) The registrant's Audit Committee has established pre-approval procedures pursuant to paragraph (c)(7)(i)(B) of Rule 2-01 of Regulation S-X, which include regular pre-approval procedures and interim pre-approval procedures. Under the regular pre-approval procedures, the Audit Committee pre-approves at its regularly scheduled meetings audit and non-audit services that are required to be pre-approved under paragraph (c)(7) of Rule 2-01 of Regulation S-X. Under the interim pre-approval procedures, any member of the Audit Committee who is an independent Trustee is authorized to pre-approve proposed services that arise between regularly scheduled Audit Committee meetings and that need to commence prior to the next regularly scheduled Audit Committee meeting. Such Audit Committee member must report to the Audit Committee at its next regularly scheduled meeting on the pre-approval decision.

(2) Not applicable.

(f) Not applicable.

(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-audit services rendered to the registrant, its investment adviser, and adviser affiliates that provide ongoing services to the registrant for 2021 and 2022 were $35,973 and $7,235, respectively.

(h) The Audit Committee of the registrant's Board of Trustees considered the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X and concluded that such services are compatible with maintaining the principal accountant's independence.

(i) Not applicable.

(j) Not applicable.

**Item 5. Audit Committee of Listed Registrants.** 

Not applicable.

------

**Item 6. Investments.** 

(a) Schedule of Investments is included as a part of the report to shareholders included under Item 1 of this Form N-CSR.

(b) Not applicable.

**Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.** 

Not applicable.

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.** 

Not applicable.

**Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.** 

Not applicable.

**Item 10. Submission of Matters to a Vote of Security Holders.** 

The registrant does not have procedures by which shareholders may recommend nominees to the registrant's Board of Trustees.

**Item 11. Controls and Procedures.** 

(a) The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report on Form N-CSR, that the design and operation of such procedures provide reasonable assurance that information required to be disclosed by the registrant in this report on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.** 

(a) Not applicable.

(b) Not applicable.

------

**Item 13. Exhibits** 

(a)(1) [Code of Ethics is attached hereto.](d400324dex99codeeth.htm)

(a)(2) [The certifications required by Rule 30a-2(a) under the 1940 Act are attached hereto.](d400324dex99cert.htm)

(a)(3) Not applicable.

(a)(4) Not applicable.

(b)(1) [The certifications required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.](d400324dex99906cert.htm)

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

**BRIGHTHOUSE FUNDS TRUST II** 

---

| | |
|:---|:---|
| By: | <u>/s/ Kristi Slavin</u> |
|  | Kristi Slavin |
|  | President and Chief Executive Officer |
| Date: | March 6, 2023 |

---

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: | <u>/s/ Kristi Slavin</u> |
|  | Kristi Slavin |
|  | President and Chief Executive Officer |
| Date: | March 6, 2023 |

---

---

| | |
|:---|:---|
| By: | <u>/s/ Alan R. Otis</u> |
|  | Alan R. Otis |
|  | Chief Financial Officer and Treasurer |
| Date: | March 6, 2023 |

---

## Ex-99.Code

**Exhibit 13(a)(1)** 

**BRIGHTHOUSE FUNDS:** 

**Brighthouse Funds Trust I** 

**Brighthouse Funds Trust II** 

**Code of Ethics Pursuant to Section 406** 

**Of the Sarbanes-Oxley Act of 2002** 

**<u>For Principal Executive and Senior Financial Officers</u>** 

**I.** **Covered Officers/Purpose of the Code** 

This Code of Ethics (this "Code") pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 has been adopted by each Trust and applies to the Trust's Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer or persons performing similar functions ("Covered Officers," as set forth in <u>Exhibit A</u>) for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trust files
with, or submits to, the SEC and in other public communications made by the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● compliance with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the prompt internal reporting of violations of this Code to an appropriate person or persons identified in
this Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● accountability for adherence to this Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual or apparent conflicts of interest.

**II.** **Covered Officers Should Handle Conflicts of Interest Ethically** 

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or the Covered Officer's service to, the Trust. For example, a conflict of interest would arise if a Covered Officer, or a member of the Covered Officer's family, receives improper personal benefits as a result of the Covered Officer's position with the Trust.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Trust and already are subject to conflict of interest provisions in the 1940 Act and the Advisers Act. For example, Covered Officers may not engage in certain transactions (such as the purchase or sale of portfolio securities or other property) with the Trust because of their status as "affiliated persons" of the Trust. The compliance programs and procedures of the Trusts and, as applicable, BIA, the Subadvisers, and the Trusts' principal underwriter, administrator, and transfer agent ("Service Providers"; each of BIA and the Trusts' principal underwriter and transfer agent, respectively, shall be referred to herein as the "Affiliated Service Providers") are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. See also Section V of this Code.

------

Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Trusts and an Affiliated Service Provider of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers shall, in the normal course of their duties (whether for the Trusts or for an Affiliated Service Provider, or for both), be involved in establishing policies and implementing decisions that shall have different effects on the Affiliated Service Providers and the Trusts. The participation of the Covered Officers in such activities is inherent in the contractual relationships between the Trusts and their Affiliated Service Providers and is consistent with the performance by the Covered Officers of their duties as officers of the Trusts. Thus, if performed in conformity with the provisions of the 1940 Act and the Advisers Act, other applicable laws and the Trusts' organizational documents, such activities shall be deemed to have been handled ethically and not to have involved any violation of this Code. In addition, it is recognized by the Board that the Covered Officers may also be directors, officers or employees of one or more other investment companies covered by this or other codes and that such service, by itself, does not give rise to a conflict of interest or to a violation of this Code.

Other conflicts of interest are covered by this Code, even if such conflicts of interest are not the subject of provisions of the 1940 Act and the Advisers Act. The following list provides examples of conflicts of interest under this Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Trust.

Each Covered Officer must not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● use the Covered Officer's personal influence or personal relationships to influence investment decisions
or financial reporting by the Trusts whereby the Covered Officer, or a member of the Covered Officer's family, would knowingly benefit personally to the detriment of the Trusts and their shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● use the Covered Officer's position with the Trust for private economic gain to the Covered Officer, the
Covered Officer's family or any other person, or in a manner detrimental to the interests of the Trust and its shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● exercise inappropriate influence in connection with the Covered Officer's official duties that causes the
Trusts to violate applicable laws, rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● cause the Trusts to take action, or fail to take action, for the individual personal benefit of the Covered
Officer, or a member of the Covered Officer's family, rather than the benefit of the Trusts; or retaliate against any other person or entity doing business with the Trusts for reports of potential violations of this Code or applicable laws that
are made in good faith.

------

There are some relationships that should always be disclosed to the CCO of the Trusts ("Code Officer"). These relationships are listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● any ownership interest in, or any consulting or employment relationship with, any entities doing business with
the Trusts, other than an Affiliated Service Provider or an affiliate of an Affiliated Service Provider. This disclosure requirement shall not apply to or otherwise limit the ownership of publicly traded securities so long as the Covered
Officer's ownership does not exceed $50,000 of the outstanding securities of the relevant class; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Trusts for
effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment with an Affiliated Service Provider or its affiliates. This disclosure requirement shall not apply to or
otherwise limit (i) the ownership of publicly traded securities so long as the Covered Officer's ownership does not exceed $50,000 of the particular class of security outstanding or (ii) the receipt by an Affiliated Service Provider
or its affiliate of research or other benefits in exchange for "soft dollars."

**III.** **Disclosure and Compliance** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Each Covered Officer should review the relevant disclosure pertaining to the Trusts and disclosure
requirements generally applicable to the Trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the
Trusts to others, whether within or outside the Trusts, including to the Board and auditors, and to governmental regulators and self- regulatory organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● each Covered Officer should, to the extent appropriate within the Covered Officer's area of
responsibility, consult with other officers and employees of the Trusts, the Affiliated Service Providers, auditors, other entities doing business with the Trust or with counsel to the Trust with the goal of promoting full, fair, accurate, timely
and understandable disclosure in the reports and documents the Trusts file with, or submit to, the SEC (which for the sake of clarity, does not include any sales literature; or omitting prospectuses or "tombstone" advertising prepared by
the Trusts' principal underwriter) and in other public communications made by the Trusts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions
imposed by applicable laws, rules and regulations by (i) adhering personally to such standards and restrictions and (ii) encouraging and counseling other persons involved with the Trusts to adhere to such standards and restrictions.

------

**IV.** **Reporting and Accountability** 

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● upon adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing
to the Trusts that the Covered Officer has received, read, and understands this Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● annually thereafter affirm to the Trusts that the Covered Officer has complied with the requirements of this
Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● provide full and fair responses to all questions asked in any Trustee and Officer Questionnaire as well as
with respect to any supplemental request for information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● notify the Code Officer promptly if the Covered Officer knows of any material violation of this Code. Failure
to do so is itself a violation of this Code.

The Code Officer is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. The Code Officer may consult with internal or external counsel or accountants to assist with the application and interpretation of this Code.

Requests for waivers from this Code shall be submitted in writing to the Code Officer. The Audit Committee of the Board shall be authorized to grant waivers, as it deems appropriate. Any changes to or waivers of this Code shall, to the extent required, be disclosed as provided by SEC rules.

The Trusts shall follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Code Officer shall take all appropriate action to investigate any potential material violations reported
to the Code Officer, which may include the use of internal or external counsel, accountants or other personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● if, after such investigation, the Code Officer believes that no material violation has occurred, the Code
Officer is not required to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● any matter that the Code Officer believes is a material violation shall be reported to the President of the
applicable Trust (if the violation is by someone other than the President) and the Audit Committee of the Board (together, the "Committee");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● if the Committee concurs that a material violation has occurred, it shall consider appropriate action, which
may include disclosure to the full Board of the affected Trust, review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of an Affiliated Service Provider or its board; and/or
disciplinary action (which may include the dismissal of the Covered Officer as an officer or employee of the Trusts);

------

**V.** **Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Trusts for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. The Trusts and their Service Providers' codes of ethics under Rule 17j-1 under the 1940 Act and the Service Providers' more detailed compliance policies and procedures are separate requirements applying to the Covered Officers and others, and are not part of this Code.

**VI.** **Amendments** 

Any amendments to this Code, other than amendments to <u>Exhibit A</u>, must be approved or ratified by a majority vote of the Board.

**VII.** **Internal Use** 

The Code is intended solely for internal use by the Trusts and does not constitute an admission, by or on behalf of the Trusts, as to any fact, circumstance, or legal conclusion. All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code or upon advice of counsel, such reports and records shall not be disclosed to anyone other than the Board, the Covered Officers, the Code Officer, the Service Providers and their affiliates, outside audit firms, legal counsel to the Trusts, and legal counsel to the Independent Trustees.

**EFFECTIVE AS OF:** May 22, 2012

**REVISED AS OF**: May 25, 2016; January 3, 2017; January 2, 2018; May 19, 2021

------

**<u>Exhibit A</u>**

<u>Persons Covered by this Code of Ethics</u> 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Trust** | **Principal Executive**<br> **Officer** | **Principal Financial**<br> **Officer** | **Principal**<br> **Accounting Officer** |
| &nbsp;&nbsp; Brighthouse<br> Funds Trust I | Kristi Slavin, President and Chief Executive Officer | Alan R. Otis, CFO and Treasurer | Alan R. Otis, CFO and Treasurer |
| &nbsp;&nbsp; Brighthouse<br> Funds Trust II | Kristi Slavin, President and Chief Executive Officer | Alan R. Otis, CFO and Treasurer | Alan R. Otis, CFO and Treasurer |

---

## Ex-99.Cert

**Exhibit 13(a)(2)** 

**<u>CERTIFICATIONS</u>**

I, Kristi Slavin, certify that:

1. I have reviewed this report on Form N-CSR of Brighthouse Funds Trust
II;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | March 6, 2023 |
| By: | <u>/s/ Kristi Slavin</u> |
|  | Kristi Slavin |
|  | President and Chief Executive Officer |

---

------

I, Alan R. Otis, certify that:

1. I have reviewed this report on Form N-CSR of Brighthouse Funds Trust II;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | March 6, 2023 |
| By: | <u>/s/ Alan R. Otis</u> |
|  | Alan R. Otis |
|  | Chief Financial Officer and Treasurer |

---

## Exhibit 99.906

**Exhibit 13(b)(1)** 

Kristi Slavin, and Alan R. Otis, of Brighthouse Funds Trust II (the "Trust"), each certify that:

1. This Form N-CSR filing for the Trust (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

---

| | |
|:---|:---|
| By: | <u>/s/ Kristi Slavin</u> |
|  | Kristi Slavin |
|  | President and Chief Executive Officer |
|  By:  | <u>/s/ Alan R. Otis</u> |
|  | Alan R. Otis |
|  | Chief Financial Officer and Treasurer |

---

Date: March 6, 2023