Morningstar Advisor - Summer 2007 - 74

By the Numbers: VAs Living Benefit Has Another Plus: Clients Stay Invested Just over 30% of total variable annuity sales (excluding 403(b) sales) are concentrated in the top 15 contracts, a ratio that has remained fairly consistent over time. With the exception of MetLife’s Preference Plus Select, which is used primarily in the 401(k) plans of small and midsize employers, the highest concentration of assets in these products is in either a fund of funds investment option (Lifestyle Growth Series II in John Hancock’s Venture III) or a subaccount that is a significant component of an asset allocation model (RiverSource VP Diversified Bond in RiverSource RAVA4 Advantage). As discussed in the spring issue of Morningstar Advisor, to maintain a living benefit guarantee, many contracts require investors to fully allocate to specific fund of funds or asset-allocation models and to periodically rebalance the portfolio. While the guarantee itself is structured to provide protection of account value and income, the allocation requirement can be a hidden benefit for certain investors. Investors are often tempted to chase the returns of hot funds and markets. With living benefit guarantees, investors are forced to ride out the lows and won’t miss out on market upturns. A living benefit isn’t the only way to encourage clients to allocate appropriately—and it does add additional costs—but it can get nervous investors comfortable with staying invested in a way that gives them a better chance of reaching their goals. K Frank O’Connor is manager of Morningstar’s variable annuity software applications. Sales Rank Contract Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 RiverSource Life Insurance Company RVS RAVA4 Advantage Jackson Natl Life Insurance Co Perspective II John Hancock Life Insurance Co (USA) Venture III Pacific Life Insurance Company Innovations Select AXA Equitable Life Insurance Co Accumulator Elite 2006 Metropolitan Life Insurance Preference Plus Select Hartford Life Insurance Company Leaders 3 American Skandia Life Assurance Co XTra Credit Six Pacific Life Insurance Company Value Hartford Life Insurance Company Director M AXA Equitable Life Insurance Co Accumulator Plus 2006 AXA Equitable Life Insurance Co Accumulator 2006 American Skandia Life Assurance Co APEX II John Hancock Life Insurance Co (USA) Venture (2006) Jackson Natl Life Insurance Co Perspective L Series Lincoln National Life Insurance Company American Legacy III View AXA Equitable Life Insurance Co EQUI-VEST 300/400 Nationwide Life Insurance Co BOA - Achiever ING USA Annuity and Life Insurance Co GoldenSelect Landmark ING USA Annuity and Life Insurance Co GoldenSelect PREMIUM PLUS Fidelity Investments Life Ins Personal Retirement Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) Lincoln National Life Insurance Company American Legacy III MetLife Investors USA Insurance Company MetLife Investors Series L VA RiverSource Life Insurance Company RVS RAVA4 Select ING USA Annuity and Life Insurance Co GoldenSelect ES II Lincoln National Life Insurance Company Am. Leg. Shareholder’s Advan. Hartford Life Insurance Company Director M Outlook MetLife Investors USA Insurance Company MetLife Investors Series XC VA Pacific Life Insurance Company Pacific Portfolios John Hancock Life Insurance Co (USA) Venture Vantage Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA (New) Nationwide Life Insurance Co BOA - All American Gold AIG SunAmerica Life Assurance Company Polaris II A-Class Platinum Series Ohio National Life Insurance Co. ONcore Lite Genworth Life and Annuity Insurance Co. RetireReady Choice New England Life Insurance Co American Forerunner Series Sun Life Assurance Co of Canada (US) Masters Flex American Skandia Life Assurance Co Advisors Plan III Nationwide Life Insurance Co BOA - America’s Future II MetLife Investors USA Insurance Company PrimElite III Allianz Life Ins Co of North America High Five Pruco Life Insurance Premier VA X Series Lincoln National Life Insurance Company ChoicePlus Assur. (Bonus) Lincoln National Life Insurance Company Multi-Fund Peoples Benefit Life Insurance Vanguard VA American Skandia Life Assurance Co LifeVest II Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) AIG SunAmerica Life Assurance Company Polaris Platinum II Pacific Life Insurance Company Pacific Voyages Data as of March 31, 2007 GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit 74 Morningstar Advisor Summer 2007

Morningstar Advisor - Summer 2007

Table of Contents for the Digital Edition of Morningstar Advisor - Summer 2007

Morningstar Advisor - Summer 2007
Contents
Letter from the Publisher
Get to Know the Bond “All-Stars”
Research Briefs
Our Stewardship Test Gets Tougher
Save It for Later
Too Many Oranges
Best of Both Worlds
No Two Clients Are Alike
When It Comes to VAs, It’s Seller Beware
Hands On: Finding the Suitable Fund Share Class for Your Client
Fund Style Can Drift Off Course
Sticking to Their Style, Through Thick and Thin
Marathon Man
Growth, With a Chaser
A Menu of Ideas to Fill Five Market Baskets
Funds: Finding Funds with Conviction
Stocks: So You Say You Want Income?
All Eyes on China
Mutual Fund Analyst Picks
Undervalued Stocks
Most Popular Variable Annuities
What’s New at Morningstar and on the Web
The Advisor’s Economic Moat
Morningstar Advisor - Summer 2007 - Intro
Morningstar Advisor - Summer 2007 - Morningstar Advisor - Summer 2007
Morningstar Advisor - Summer 2007 - Cover2
Morningstar Advisor - Summer 2007 - Contents
Morningstar Advisor - Summer 2007 - 2
Morningstar Advisor - Summer 2007 - 3
Morningstar Advisor - Summer 2007 - 4
Morningstar Advisor - Summer 2007 - Letter from the Publisher
Morningstar Advisor - Summer 2007 - 6
Morningstar Advisor - Summer 2007 - 7
Morningstar Advisor - Summer 2007 - Get to Know the Bond “All-Stars”
Morningstar Advisor - Summer 2007 - 9
Morningstar Advisor - Summer 2007 - Research Briefs
Morningstar Advisor - Summer 2007 - 11
Morningstar Advisor - Summer 2007 - Our Stewardship Test Gets Tougher
Morningstar Advisor - Summer 2007 - 13
Morningstar Advisor - Summer 2007 - Save It for Later
Morningstar Advisor - Summer 2007 - 15
Morningstar Advisor - Summer 2007 - Too Many Oranges
Morningstar Advisor - Summer 2007 - 17
Morningstar Advisor - Summer 2007 - Best of Both Worlds
Morningstar Advisor - Summer 2007 - 19
Morningstar Advisor - Summer 2007 - 20
Morningstar Advisor - Summer 2007 - No Two Clients Are Alike
Morningstar Advisor - Summer 2007 - When It Comes to VAs, It’s Seller Beware
Morningstar Advisor - Summer 2007 - 23
Morningstar Advisor - Summer 2007 - 24
Morningstar Advisor - Summer 2007 - 25
Morningstar Advisor - Summer 2007 - 26
Morningstar Advisor - Summer 2007 - 27
Morningstar Advisor - Summer 2007 - 28
Morningstar Advisor - Summer 2007 - Hands On: Finding the Suitable Fund Share Class for Your Client
Morningstar Advisor - Summer 2007 - 30
Morningstar Advisor - Summer 2007 - 31
Morningstar Advisor - Summer 2007 - 32
Morningstar Advisor - Summer 2007 - 33
Morningstar Advisor - Summer 2007 - Fund Style Can Drift Off Course
Morningstar Advisor - Summer 2007 - 35
Morningstar Advisor - Summer 2007 - 36
Morningstar Advisor - Summer 2007 - Sticking to Their Style, Through Thick and Thin
Morningstar Advisor - Summer 2007 - 38
Morningstar Advisor - Summer 2007 - 39
Morningstar Advisor - Summer 2007 - 40
Morningstar Advisor - Summer 2007 - 41
Morningstar Advisor - Summer 2007 - 42
Morningstar Advisor - Summer 2007 - Marathon Man
Morningstar Advisor - Summer 2007 - 44
Morningstar Advisor - Summer 2007 - 45
Morningstar Advisor - Summer 2007 - 46
Morningstar Advisor - Summer 2007 - 47
Morningstar Advisor - Summer 2007 - Growth, With a Chaser
Morningstar Advisor - Summer 2007 - 49
Morningstar Advisor - Summer 2007 - 50
Morningstar Advisor - Summer 2007 - 51
Morningstar Advisor - Summer 2007 - A Menu of Ideas to Fill Five Market Baskets
Morningstar Advisor - Summer 2007 - 53
Morningstar Advisor - Summer 2007 - 54
Morningstar Advisor - Summer 2007 - 55
Morningstar Advisor - Summer 2007 - 56
Morningstar Advisor - Summer 2007 - 57
Morningstar Advisor - Summer 2007 - Funds: Finding Funds with Conviction
Morningstar Advisor - Summer 2007 - 59
Morningstar Advisor - Summer 2007 - Stocks: So You Say You Want Income?
Morningstar Advisor - Summer 2007 - 61
Morningstar Advisor - Summer 2007 - 62
Morningstar Advisor - Summer 2007 - All Eyes on China
Morningstar Advisor - Summer 2007 - 64
Morningstar Advisor - Summer 2007 - 65
Morningstar Advisor - Summer 2007 - 66
Morningstar Advisor - Summer 2007 - 67
Morningstar Advisor - Summer 2007 - Mutual Fund Analyst Picks
Morningstar Advisor - Summer 2007 - 69
Morningstar Advisor - Summer 2007 - 70
Morningstar Advisor - Summer 2007 - 71
Morningstar Advisor - Summer 2007 - Undervalued Stocks
Morningstar Advisor - Summer 2007 - 73
Morningstar Advisor - Summer 2007 - Most Popular Variable Annuities
Morningstar Advisor - Summer 2007 - 75
Morningstar Advisor - Summer 2007 - What’s New at Morningstar and on the Web
Morningstar Advisor - Summer 2007 - 77
Morningstar Advisor - Summer 2007 - 78
Morningstar Advisor - Summer 2007 - 79
Morningstar Advisor - Summer 2007 - The Advisor’s Economic Moat
Morningstar Advisor - Summer 2007 - Cover3
Morningstar Advisor - Summer 2007 - Cover4
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