By Warren S. Hersch
Variable annuities assets dipped nearly 5 percent in value in the third quarter of 2011 compared to the same period one year ago, a new report reveals.
Strategic Insight, Arlington, Va., published this finding in its most recent quarterly review of variable annuity
The survey reveals that variable annuity
funds (excluding fixed accounts) totaled $1,235 billion at the end of September, down from $1,297 billion at the close of the third quarter of 2010.
In relation to the second quarter, the third quarter dip was even greater: down 12.7 percent when assets were $1,415 billion.
The survey adds that equity funds represented 71.3 percent of variable assets at the close of September, a new low and a noteworthy drop sequentially from 76.2 percent in the second quarter.
However, bond funds rose to 24.6 percent of assets from 20.4 percent, surpassing their peak of 22.8 percent just over a year ago. Money market assets rose marginally from 3.4 percent to 4.2 percent, below the post-crisis high of 8.3 percent in Q1’09.
Originally published on LifeHealthPro.com