Vanguard Prepares to End Variable Annuity Offering
June 25, 2019 by Bernice Napach
Vanguard is preparing to end its variable annuity offering for retail investors.
Over the next 12 to 18 months it will transfer client servicing and account administration for the Vanguard Variable Annuity to Transamerica.
“While insurance-based options can be an appropriate choice for some investors, annuity administration is not central to our long-term product and service plans,” said Karin Risi, managing director of Vanguard’s Retail Investor Group, in a statement. “We’re deepening our focus on our core priorities: delivering industry-leading funds and ETFs, enhancing the client experience and expanding our advice capabilities.”
Vanguard will, however, continue to manage the Vanguard Variable Insurance Funds, which are the underlying investments in its variable annuity product and other insurance products. As of May 31, those insurance funds had $32.6 billion in assets, almost double the $17 billion in the Vanguard Variable Annuity, according to stats provided by a spokesman.
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