July 2017 – Fund Transfer Capabilities

Like any retirement product with market exposure, it is important that variable annuity clients can regularly monitor and reallocate their portfolios. Online fund transfer capabilities are a valuable private site resource that allow clients the flexibility to perform reallocations on their own schedule. Firms should offer comprehensive online transfer options that are easy to complete and help clients make informed decisions. This Annuity Monitor Report reviews the fund transfer capabilities offered to variable annuity clients on the private sites of 14 firms in our coverage group.

The fund transfer processes and capabilities were fairly consistent across the Annuity Monitor firms. All firms reviewed offered the ability to transfer from one source fund to one or more destination funds, while 71% of firms also allowed transfers from multiple source funds. The online fund transfer processes were easy to complete, typically containing three or four steps. What set the top firms in the report apart was the user experience they offered clients. We saw variance in layouts and design, with several valuable features like fund information and help resources that were underutilized across the fund transfer interfaces.