Money Funds Offered by Annuity Firms Post Losses Wall Street Journal (11/08/02) Vol. 12, No. 10 p.C1; Damato, Karen
Over 200 money-market "subaccounts" in annuities have posted losses this year due to fees that have not been reduced. Unlike other money-market subaccounts, variable annuity subaccounts often charge higher fees and do not stick to a fixed value of $1 per share. For investors concerned about their money-market subaccounts diminishing, experts suggest looking into purchasing an annuity with a fixed rate of return, reconsidering investments in long-term products, and shopping around for annuities with lower fees.