Does the funder usually manage sub account allocation?
Upon purchase, the funding source will require that all monies are immediately transferred to the fixed account. The funder wants certainty on the part of the asset they now own. They will manage the longevity risk, but do not want any market risk unexpectedly affecting their results and the performance of the product. The funder purchased the policy as an investment strategy that is generally in an asset class not correlated to market conditions.
