Lincoln Investment Advisors Corporation (LIAC), an affiliate of Lincoln Financial Group (NYSE:LNC) announced the introduction of Lincoln Variable Insurance Product (LVIP) Dimensional Funds and Vanguard® ETF Funds, new fund-of-funds investment options available through select Lincoln variable life, annuity and defined contribution products. Designed to achieve long-term growth, these investing strategies provide investors with access to trusted names in retirement planning while leveraging Lincoln’s expertise in risk management and asset allocation.
"The introduction of these Funds underscores Lincoln’s commitment to providing innovative insurance and retirement solutions that meet the evolving needs of investors," says Mark Konen, president, Insurance and Retirement Solutions for Lincoln Financial Group. "Together with Vanguard and Dimensional, we have developed solutions that can help people grow their investments for the long-term."
With input from Dimensional Fund Advisors about Dimensional’s family of funds, the LVIP Dimensional Funds offer exposure to the Dimensional Institutional Funds used by advisors, and were developed to achieve long-term capital appreciation and provide access to a risk-managed asset allocation strategy. Through a fund-of-funds structure, LVIP Dimensional Equity Funds provide a broad, cost-effective exposure to the market. By spreading the investment gradually across the entire market, the funds can hold stocks for maximum efficiency and minimize counterproductive trading. The new fund options include the LVIP Dimensional U.S. Equity Fund, LVIP Dimensional Non-U.S. Equity Fund and the LVIP Dimensional/Vanguard Total Bond Fund.
The LVIP Vanguard® ETF Funds provide exposure to domestic and international exchange-traded funds (ETFs) and Vanguard’s at-cost indexing expertise. The Funds are designed to help investors track indices and gain equity and fixed income exposure through a diversified approach. The three new strategies available are the LVIP Vanguard Domestic Equity ETF Fund and LVIP Vanguard International Equity ETF Fund — both designed to achieve long-term capital appreciation — and the LVIP Dimensional/Vanguard Total Bond Fund, designed with a total return consistent with preservation of capital.
"We are confident that the distribution of Lincoln’s LVIP Dimensional Funds and LVIP Vanguard ETF Funds will resonate well among the RIA channel," says David Weiss, CFA, Vice President, Lincoln Investment Advisors and Portfolio Manager. "The Funds’ broadly diversified asset class-specific fund-of-funds offering — U.S. Equity, International Equity and Total Bond — is unique to the market and allows RIAs to effectively and efficiently gain exposure to these particular asset classes within their allocation models."
The fund-of-funds investment approach offers unique advantages including a simplified process to help investors achieve a diversified portfolio; exposure to a wide variety of asset classes, regions and investments styles; and ongoing monitoring and rebalancing to ensure that each Fund is positioned to take advantage of current market conditions. Lincoln Financial Group is leveraging its relationships with Vanguard, Dimensional and LAIC to establish, monitor and re-allocate the underlying fund and ETF allocations within each Fund. Asset allocations will be rebalanced on a quarterly basis and adjusted annually or as needed in response to market changes.
Dimensional Fund Advisors LP is a global institutional asset management firm owned primarily by employees and directors. The firm’s broadly diversified mutual funds are engineered and managed to precisely target dimensions of risk and capture their expected returns. As of March 25, 2011, Dimensional had $222 billion in assets under management. The firm has offices in Austin, Amsterdam, Berlin, London, Santa Monica, Sydney and Vancouver.
Vanguard is the only client-owned mutual fund company in the world and an industry leader in ETFs. With $1.6 trillion1 in assets under management, Vanguard is a trusted name in the world of investing, providing at-cost management and long-term focus to its clients. Vanguard is a trademark of The Vanguard Group, Inc.
Variable products are sold by prospectus. Consider the investment objectives, risks, charges, and expenses of the variable product and its underlying investment options carefully before investing. The prospectus contains this and other information about the variable product and its underlying investment options. A prospectus is available by calling 888-868-2583. Read it carefully before investing.
The fund-of-funds has an additional level of expense. A strategy of asset allocation does not assure a profit or protect against a loss in a broadly declining market.
Insurance products distributed by Lincoln Financial Distributors, Inc., a broker/dealer, and issued by The Lincoln National Life Insurance Company, Fort Wayne, Ind., or in New York by Lincoln Life & Annuity Company of New York, Syracuse, N.Y.
About Lincoln Investment Advisors Corporation
Lincoln Investment Advisors Corporation (LIAC) is the investment advisor to the LVIP Dimensional Funds and LVIP Vanguard Equity ETF Funds. LIAC is a registered investment advisor and wholly owned subsidiary of Lincoln National Corporation. LIA or its predecessors has served as an investment advisor to mutual funds for over 20 years.
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $162 billion as of March 31, 2011. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life, disability and dental insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.
1Vanguard, "Who We Are," https://personal.Vanguard.com, as of February 2011.