Andrew Rogers

Creating a variable insurance trust, mutual fund or any investment company is a difficult initiative. With a web of regulators and operations and compliance requirements, the VIT requires the efforts of a team of professionals. The sales effort alone is difficult and requires a network of insurance companies and representatives to be successful. The payoff could be huge, however, as VITs provide access to trillions of dollars of assets.

The idea of a single fund that could be widely distributed in the form of various share classes—A, C and I, as well as V for the insurance channel and E for exchange-traded products—is logical, but it’s not currently possible. Therefore, fund companies that want to tap into the insurance market to get their hands on those assets must create a VIT. And after a difficult period in 2008, the VIT structure seems to be on the rise. ....

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