Why is the unit value of a variable annuity option different from the net asset value reported by the underlying fund?
If your investment options are through a group annuity, you’re investing in subaccounts of a variable annuity rather than buying mutual fund shares. The net asset value is the fund’s tracking method, whereas the unit value is based on New England Financial’s record-keeping system. If the daily change in net asset value is 10 percent, the daily change in the unit value will be approximately 10 percent, less your plan s Variable Asset Charge if applicable. In addition, when New England Financial buys new shares of some underlying funds, the net asset value at which the new shares are bought may lag by one day. This may have either a positive or negative effect, depending upon the direction in which the net asset value moves.
