Labels sitting on top of annotation

Discussion created by MattSmith42 on Apr 16, 2013
I have an MXD in which I've converted the labels of one feature class to annotation, but have been happy to leave the rest as automatic labels.

The problem I'm having is that the labels are now obscuring the annotation. I was under the impression that annotation was treated as a spatial feature and thus labels came in around them (and not on top of them).

Thanks in advance.