Filed Under:Annuities, Variable

Managed volatility funds at $129 billion in September

Photo credit: Thinkstock
Photo credit: Thinkstock

Monies in invested in managed volatility funds totaled $129 billion as of September 2012, new research shows.

Strategic Insight, New York, released this finding in a summary of results from a new report, “Managed Volatility: The Anatomy of an Investing Trend.”  The study analyzes the use of managed volatility assets, including both mutual funds and variable annuities, among asset managers, insurance companies and distributors.

Managed volatility funds readjust investments for periods of high volatility or market declines. Because the funds can help insurers better manage the risk of living and death benefits, they have proliferated within both variable annuity funds and retail mutual funds, according to Tamiko Toland, managing director of Retirement Income Solutions at Strategic Insight.

The $21 billion total recorded in September represents more than a 21-fold increase from the $967 million posted in the quarter of 2006, the survey report.

Strategic Insight’s analysis also reveals that “converted portfolios”—non-managed volatility assets that investors reallocated to managed volatility assets—accounted for $61 billion or 47% of the September total. Most of the converted assets went into variable annuities.

The new research identifies 175 managed volatility funds provided by 32 investment advisors. 

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting

Provided by LIFEHEALTHPRO

Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.