Abstract: A computer system includes an input device. The input device is configured to receive input data for initiating a variable annuity account issued by an insurance company. The input data includes identifying information for the account holder and the amount to be invested in the account. The variable annuity includes a guarantee feature. The computer system also includes a processor, a program memory and a storage device. The processor is operative with program instructions stored in the program memory to allocate the amount invested between two different investment funds. One of the funds includes an equity asset or an equity index asset. The other fund includes a hedging component that is selected to be negatively correlated in terms of asset value changes with the equity asset or equity index asset.