The problem is that there is not much information available on this fund .
Found this regarding how the interest rates are determined...
Q12 What index is used?
A12 The credited rate for the Lincoln Stable Value
Account and Lincoln Separate Account Stable Value
Account are based on the three-year average of the
Barclays Capital Intermediate U.S. Government/Credit
Index, based on the yield to worst as shown at the
end of each month in the ‘live Lehman’ Web site. This
is a Web site provided to Lehman customers (now
Barclays) through an ID and password. Please contact
Barclays Capital to obtain access rights to their Web
site. You can find the Intermediate U.S. Govt/Credit
Index via the Fixed Income tab, then Fixed Income
indices U.S. Aggregate, Basic Statistics, and reference
the Credit section of the indices.
Q13 How is the crediting rate calculated
from the index?
A13 For any particular calendar quarter, the credited rate
is based on the 36-month average plus or minus a
factor for that particular contract. The 36-month
average is computed through the end of the month
that ends one month prior to the beginning of the
quarter. A typical crediting rate formula may be
Barclays minus 115, which means that the credited
rate will be the average minus 1.15% on an annualized
basis. If the quarter begins July 1, 2009, the
36-month average will include 36 month-end index
yields through May 31, 2009.
Although there is no apparent ER, the "minus 1.15%" sure sounds like an ER. Now, it is possible that they are just using "Barclays Capital Intermediate U.S. Government/Credit Index" as an index to calculate the interest, and the underlying asset does not has the same risk profile as the index. But then, why would they do that?
As you can see I am pretty clueless about this, and annuities in general, so that probably explains my confusion.
Will appreciate any information and feedback on these.