The plan consists of 15 funds. It covers 4 major asset classes and 12 minor asset classes. The major asset classes it covers are US Equity, Fixed Income, REITs and Foreign Equity.
Vanguard Variable Annuity provides investment options in VVA (Vanguard Variable Annuity) funds. Vanguard has an excessive trading policy which is different from most of brokerages: it imposes 60 days waiting period before one could repurchase a fund again afer selling the fund. IMPORTANT NOTE: because MyPlanIQ does not have VVA fund data, all of these funds are substituted by their Vanguard mutual fund equivalents. We believe the Vanguard mutual funds should closely track their corresponding VVA funds.
The following is the excerpt on the Vanguard Variable Annuity exchange policy from its prospectus. Based on the description, MyPlanIQ has yet to work out a way to handle so caled 'round trip' limitation. We will fix this shortly.
L I M I T A T I O N S ON Exchanges
Because excessive exchanges can disrupt management of the Fund and increase the Fund’s costs for
all Contract Owners, the Fund limits exchanges as follows:
■ You may make no more than two substantive round trips through a Portfolio (not including the
Money Market Portfolio) during any 12-month period.
■ The Fund and the Company may refuse an exchange at any time, for any reason.
■ The Company may revoke a Contract Owner’s exchange privilege at any time, for any reason.
A round trip is a redemption from a Portfolio followed by a purchase back into the Portfolio. Also, round
trip covers transactions accomplished by any combination of methods, including transactions conducted
by check, wire, or exchange to or from another Vanguard fund. “Substantive” means a dollar amount
that Vanguard determines, in its sole discretion, could adversely affect the management of the Fund.
