3

I have a "variable annuity" with Lincoln. They have a "historic unit values" page that says fund X increased 40% since the end of last year, to yesterday. And that fund Y increased 23%.

But they also have a "fund performance" PDF dated 30 SEP 2015 that says fund X has ALWAYS lost money (32% over one year) and fund Y has an average annual gain since inception of 5% but a 19% loss over one year.

Every time I have called Lincoln with questions, I have found that the people answering the phone know less about it than I do. And either I don't know much or one of those two sources is completely wrong.

What is the explanation?

Bob Baerker
  • 77,328
  • 15
  • 101
  • 175
WGroleau
  • 1,147
  • 7
  • 17

1 Answers1

1

I think what you are looking at are absolute gain/loss over one year and annualized (CAGR) values. My take would be that fund X having lost 32% over one year has clocked a -ve CAGR over its entire lifetime (it is possible to lose 32% over 1 year especially if it is somehow equity linked) or over its lifetime (may be 2008) it lost a goodly chunck of its value and shows a -ve CAGR. Fund Y also would have undergone similar situation, so that over 5 years it has shown a -ve CAGR.

Ironluca
  • 1,185
  • 5
  • 11