April 2008

Cover Story

More VA Exchanges, Less Brand Loyalty : Advisers Migrate to ETFs and SMAs, Study Shows

Variable annuity manufacturers should have reason to celebrate lately, thanks to a 15% jump in gross sales in 2007. But VAs still aren't winning the hearts and minds of most advisers or their clients, according to a recent study by Cogent Research. Financial advisers expect no growth in the VA share of managed assets over the next two years, the Boston-based firm found, and VAs "feature the lowest customer loyalty scores among major investment products."