Lincoln National Corporation LNC recently unveiled LVIP American Funds Vanguard Active Passive Growth Fund, a new investment option offered exclusively within its American Legacy and Lincoln Investor Advantage variable annuities.
This fund leverages the expertise of two prominent investment managers, Capital Group and Vanguard, to deliver investors a thoughtfully balanced approach to long-term, diversified growth by integrating both active and passive investment strategies within a Lincoln variable annuity. Capital Group ranks among the world’s most experienced active mutual fund managers, with $2.8 trillion in assets under management. Vanguard is one of the leading global investment managers and offers an extensive portfolio of both active and index-based investment products.
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The newly introduced fund is structured to manage downside risk while seeking upside potential by moving beyond simple index-based allocations. Capital Group applies a proactive, research-driven investment approach aimed at generating superior long-term, risk-adjusted returns. In parallel, Vanguard contributes a range of index-based exchange-traded funds (ETFs) that offer broad, cost-efficient market exposure. Lincoln National is responsible for the strategic asset allocation within the fund.
The launch of this fund also seems to be a time-opportune one since a majority of financial advisors these days agree that active and passive strategies complement each other. They also believe that during periods of market volatility, active management offers valuable downside risk protection through tactical decision-making. Therefore, the active management component of the new fund is designed to enhance portfolio flexibility and resilience amid volatile markets.
The recent initiative is expected to enhance the company’s variable annuity offerings, which, in turn, can better support financial professionals and their clients. The addition of the fund will enhance the annuity business of Lincoln National and bring in higher sales through attracting new customers as well as retaining existing ones. Annuity sales advanced 33% year over year in the first quarter of 2025.
LNC’s variable annuities are designed to help individuals grow and safeguard their retirement income, offering a variety of investment options, features and benefits. These solutions, available at an additional cost, are tailored to support diverse client objectives and evolving financial needs. Variable annuities have remained a powerful tool for boosting future retirement income.
