Lincoln National Debuts Hybrid Growth Fund in Variable Annuities

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.

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.

LNC’s Motive Behind the Recent Move

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.

Lincoln National’s Price Performance & Zacks Rank

Shares of Lincoln National have gained 6.3% in the past six months compared with the industry’s 3.3% growth. LNC currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation HMN, Voya Financial, Inc. VOYA and Kemper Corporation KMPR. While Horace Mann currently sports a Zacks Rank #1 (Strong Buy), Voya Financial and Kemper carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Horace Mann’s earnings surpassed estimates in three of the last four quarters and matched the mark once, the average surprise being 24.09%. The Zacks Consensus Estimate for HMN’s 2025 earnings indicates a rise of 26.1% while the same for revenues implies an improvement of 6.6% from the respective 2024 figures. The consensus mark for HMN’s 2025 earnings has moved 5.5% north in the past 60 days. 

The bottom line of Voya Financial beat estimates in each of the trailing four quarters, the average surprise being 38.39%. The Zacks Consensus Estimate for VOYA’s 2025 earnings indicates a rise of 35.5% while the same for revenues implies an improvement of 11.4% from the respective 2024 figures. The consensus mark for VOYA’s 2025 earnings has moved 1.6% north in the past 30 days.

Kemper’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 21.11%. The Zacks Consensus Estimate for KMPR’s 2025 earnings indicates a rise of 7.6% while the same for revenues implies an improvement of 7.5% from the respective 2024 figures. The consensus mark for KMPR’s 2025 earnings has moved 1.3% north in the past 60 days. 

Shares of Horace Mann and Voya Financial have gained 6.8% and 0.5%, respectively, in the past six months. However, Kemper stock has dipped 1.2% in the same time frame. 

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This article originally published on Zacks Investment Research (zacks.com).

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