Unit pricing and trade processing for variable annuity and life separate accounts
Fund Management is Zinnia’s platform for the daily separate-account cycle. It takes in fund prices, calculates unit values, turns policy activity into fund trades, sends them through NSCC, and reconciles shares and values every day. Carriers run it themselves on UV Cloud, or have Zinnia run it as Fund Management Services.
How variable annuity unit pricing works
Five steps, each one checked against the last. Every step writes a record the next step can check. When a value falls outside tolerance, your team can trace it back to the step where it started.
Fund prices arrive
Fund Management takes in daily NAVs and fund data for mutual funds, alternative investments, and fund-of-funds structures.
Unit values are calculated
Unit values are calculated for each subaccount, with asset-based fees and revenue sharing applied against separate-account positions.
Trades are instructed and settled
Policy activity from the administration system is aggregated into fund-level trades, sent through NSCC, and tracked through confirmation and settlement at DTCC.
Positions are reconciled
Shares and values are reconciled daily against tolerances. Exceptions are flagged with the price, unit value, or trade that caused them.
Results go to accounting and reporting
Reconciled values feed the general ledger, STAT and GAAP reporting, and third-party feeds to Morningstar, Lipper, and Vards.
Securities execution and settlement happen at the fund companies and through market infrastructure. Fund Management handles the pricing, instructions, tracking, and reconciliation around them.
UV Cloud vs. Fund Management Services
Two ways to run it. Both run on the same platform and produce the same reports. The difference is who does the daily work.
| UV Cloud | Fund Management Services | |
|---|---|---|
| Who runs the daily cycle | Your team | Zinnia, under your oversight |
| Fund company relationships | Your team | Zinnia |
| Testing and balancing | Shared with Zinnia | Zinnia |
| Fund mergers and liquidations | Your team | Zinnia |
| Reporting | Full reporting suite | Full reporting suite |
UV Cloud suits carriers that want their own staff on the cycle and full control of the process.
Fund Management Services suits carriers that want the overnight processing and fund company coordination off their team, with Zinnia working to the operating controls they set.
STAT, GAAP, and fund reporting
Reporting your auditors already ask for. The suite is configurable by carrier and covers what statutory, GAAP, and fund oversight reviews need.
- STAT Schedule D and Schedule BA parts
- GAAP audit reports
- General ledger data feeds
- Pricing tolerance reports
- Fee accrual reports
- Share reconciliations
- Performance reporting
- Daily and monthly feeds to Morningstar, Lipper, and Vards
Admin platform, NSCC, and DTCC integrations
Fund Management exchanges data with more than 40 policy administration platforms through interfaces built over 30+ years and 60+ client implementations. Trade instructions and records move through NSCC and DTCC. Available connections vary by admin platform.
Features and security
The operational detail evaluators check line by line.
- Full taxlot preservation when blocks convert onto the platform
- Revenue sharing and fund-of-funds support
- 401(k), 403(b), and 457 plans inside annuity and life contracts
- Role-based access with full audit trails
- Two-factor authentication and automated IP address blocking
- Excel import and export for daily work
Fund Management FAQ
What is unit pricing in a variable annuity?
Unit pricing is the daily calculation that sets the value of one accumulation unit in each subaccount. It’s how a variable annuity or variable life contract turns fund performance into a policyholder’s account value, and it sets the value used for that day’s premiums, transfers, and withdrawals.
How is a variable annuity unit value calculated?
Each day’s accumulation unit value is the prior day’s unit value multiplied by the subaccount’s net investment factor. The net investment factor reflects the change in the underlying fund’s NAV, any dividends or capital gains, and the daily asset-based charges deducted from the subaccount.
How does Fund Management work with NSCC and DTCC?
Fund Management aggregates policy activity into fund-level trades, sends instructions through NSCC, and tracks confirmation and settlement through DTCC.
Is Fund Management the same as UV Cloud?
UV Cloud is the platform behind Fund Management. Carriers that run the daily cycle themselves use UV Cloud directly. Carriers that want Zinnia to run it use Fund Management Services, which runs on UV Cloud.
What reports does Fund Management produce?
STAT Schedule D and BA parts, GAAP audit reports, general ledger feeds, pricing tolerance reports, fee accrual reports, share reconciliations, performance reporting, and daily and monthly feeds to Morningstar, Lipper, and Vards.
Related content
Fund & Investment Operations
Podcasts
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Talk to the Fund Management team
Tell us how many funds, products, and admin platforms you run, and whether you want your team or ours on the daily cycle. We’ll walk through how it would work for your block.