Fidelity Investments Life Insurance Co.’s variable annuities have been added to FundQuest’s offerings, according to “FundQuest adds Fidelity VA to platform” by Jessica Toonkel Marquez of Investment News. The Personal Retirement Annuity from Fidelity is the first Fidelity variable annuity to be offered to fee-based advisers through FundQuest, or any managed-account provider. Andrew Stavaridis, FundQuest’s VP of national accounts, says that FundQuest has two other annuity products on its platform. He also points out that Fidelity’s Personal Retirement Annuity costs the least of the three annuities.
The total expenses fee is just .35%, low compared to the 1.37% industry average. There is not a commission structure associated with these variable annuities either, so Fidelity believes that the product is a good fit for fee-based advisers who do not operate business commission-based. Fee-based advisers are less likely to show interest in variable annuities, so Fidelity is working hard to educate the advisers on the benefits of variable annuities. They have several white papers in the works, including one to explain the tax efficiency benefits relative to a managed-account setting. Fidelity is interested in getting the annuity into more managed-account platforms as well.