Investment Products and Service Launches

Lincoln Financial and BlackRock Launch Variable Annuity; Vanguard Taps RS Investments to Manage Mid-Cap Growth Fund; LGIMA Releases New Scientific Beta Funds for Institutional Investors; and more.

By Javier Simon | December 08, 2016
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Lincoln Financial and BlackRock Launch Variable Annuity

To help fee-based advisers meet their clients’ lifetime retirement income needs, Lincoln Financial Group has partnered with BlackRock to develop a new variable annuity, Lincoln Core Income. It’s built exclusively with BlackRock’s iShares exchange-traded funds (ETFs). The annuity is designed to provide guaranteed lifetime income, which can increase each year.

“Retirement savers are facing unprecedented challenges,” says Will Fuller, president, Annuity Solutions, Lincoln Financial Distributors and Lincoln Financial Network. “People are living longer, equity markets are volatile and interest rates remain low, putting more pressure on their savings to work harder for longer to provide adequate income. Annuities can provide income for life that is guaranteed and an essential strategy for savers who want to know they have predictable income."

The fund is expected to be available during the first quarter of 2017. There is no surrender charge, according to Lincoln Financial.

“Fee-based advisers want a simple, transparent and lower-cost strategy without a surrender charge that fits the way they serve their clients,” says Fuller. "Lincoln Core Income, built with iShares can provide savers with the equivalent of a paycheck for life that increases every year. We fully expect this product to be welcomed by retiring Baby Boomers and the advisers that serve them.”

Salim Ramji, head of BlackRock's U.S. Wealth Advisory business, says: "A shift by advisers toward fee-based models is a growing trend. Lincoln and BlackRock are collaborating to meet the need of advisers looking for simpler ways to help clients meet their retirement income goals with more low-cost, quality options using ETFs.”

NEXT: Vanguard Taps RS Investments to Manage Mid-Cap Growth Fund