Fidelity VA slow to catch on with fee-based advisers

The popular variable annuity released by Fidelity Investments with MetLife Inc. appears to have caught on more with Fidelity's representatives than with its fee-based adviser force. Last year's total sales of the MetLife Growth and Guaranteed Income variable annuity added up to more than $1 billion. This simplified VA comes with a built in 4% to 6% guaranteed lifetime withdrawal and offers only one fund, the Fidelity VIP FundsManager 60% portfolio. The MGGI variable annuity is one of two VA options available at Fidelity, which offers the Fidelity Personal Retirement Annuity as well. The FPRA brought in more than $1.5 billion in sales last year. Both products are on the cheap side, and neither pays a commission. The FPRA costs 25 basis points for accounts below $1 million and 10 basis points for accounts over that threshold. Meanwhile, the MetLife annuity has an all-in cost of 1.9% for a single life and 2.05% for joint coverage. Sales of the MetLife product by fee-based advisers didn't account for a substantial portion of sales in 2010, said Jeff Cimini, president of Fidelity Investments Life Insurance Co. “They're still kind of kicking the tires,” Mr. Cimini said of the fee-based advisers. “We have long term hopes that this is something that aligns very well with the fee-based advisers.”