Two portfolio reorganizations were scheduled for July 10, 2026 and July 17, 2026, moving policy allocations into corresponding surviving portfolios at equal total net asset value. The automatic reallocations carry no tax liability, while the transaction gives policy owners access to a similar fund with lower total expenses.

Key Highlights

  • Policy owners could transfer money from merging portfolios without a charge before the reorganization dates.
  • Surviving portfolios became closed to new investors and new investments by existing investors on their respective effective dates.
  • Policy owners’ investments move automatically from merging portfolios to corresponding surviving portfolios at equal total net asset value.
  • Transfers made before each applicable date carry no charge and do not count toward applicable transfer restrictions or limits.

Reorganization and Policy Value

Policy owners’ investments will be automatically reallocated as part of the portfolio reorganization. The move occurs from a merging portfolio to its corresponding surviving portfolio, with the reallocation completed at equal total net asset value. This structure preserves the policy value through the change, because the policy value immediately before and after the reallocation remains equal.

Portfolios Affected by the Shift

The reorganization involves Mid-Cap, Solution and Real Estate portfolios. Each affected merging portfolio is paired with a corresponding surviving portfolio for the automatic movement of existing investments. The article identifies the shift by these portfolio categories without changing the value of the investments being transferred.

Transfer Option Before Each Date

Before each applicable date, policy owners may transfer allocations out of a merging portfolio. Allocations may be transferred to another available subaccount or to the fixed interest option, as permitted by the available choices described in the article. These transfers carry no charge, so policy owners who choose to make a transfer before the applicable date are not charged for that transfer.

Transfer Limits and Restrictions

Transfers made before each applicable date do not count toward applicable transfer restrictions or limits. This applies to transfers from a merging portfolio to another available subaccount or to the fixed interest option. The article therefore distinguishes these pre-date transfers from transfers that might otherwise be counted under applicable restrictions or limits.

Status of Surviving Portfolios

The surviving portfolios are closed to new investors and to new investments by existing investors on their respective reorganization dates. Existing investments in the affected subaccounts are not treated as new investments; instead, they automatically move into the corresponding surviving portfolios. The automatic movement occurs with equal total net asset value, maintaining equality in the policy value immediately before and after the reallocation.

Allocations After Reorganization

After each applicable date, allocations directed to a merging portfolio automatically go to its surviving portfolio. Policy owners may provide alternative instructions if they do not want those allocations directed to the surviving portfolio. The automatic reallocation itself creates no tax liability, while the policy value remains equal immediately before and after the change.

Source(s)

  • https://www.sec.gov/Archives/edgar/data/897899/000091767726000316/vie0726_497.htm