New Suite of Fixed Indexed Annuities Features Indices Designed by Two Renowned Economists in Collaboration with Barclays and CIBC Capital Markets
March 26, 2019 — WEST DES MOINES, Iowa–(BUSINESS WIRE)–Athene USA (“Athene”), a leading provider of retirement savings products, and Annexus, a leading independent designer of fixed indexed annuities (FIAs), announced new enhancements to the Athene® BCA® suite of FIAs. The new BCA 2.0 FIA includes new indices designed by two renowned economists: Yale Professor Robert Shiller and Professor Jeremy Siegel of the Wharton School of Finance at the University of Pennsylvania.
BCA 2.0 provides a variety of solutions beyond accumulation, including optional lifetime income and legacy growth riders, available for a charge. Athene and Annexus will also launch a new FIA with a built-in income rider for no additional charge — Athene Velocity.
“We believe the complex challenge of retirement planning demands unconventional thinking, and BCA 2.0 reflects our commitment to innovative solutions,” said Grant Kvalheim, Chief Executive Officer of Athene USA. “Collaborating with thought leaders like Robert Shiller and Jeremy Siegel advances our vision to evolve the FIA and help Americans nearing or in retirement grow and protect their retirement savings.”
The Shiller Barclays Global Index is a global, multi-asset index designed to leverage the principles of value investing and momentum. The Index uses Shiller’s CAPE® ratio to identify undervalued equities from the world’s three largest developed markets: the United States, Eurozone and Japan. It then rebalances between the undervalued equities, bonds and commodities on a monthly basis with the aim to provide more stable returns through a variety of market environments.
Value Investing still relevant
“Value investing is a time-honored principle with continuing relevance in today’s market environment,” said Shiller. “Our index looks for lower price components among globally diversified major asset classes with positive momentum to pursue opportunities and manage risk.”
The WisdomTree Siegel Strategic Value Index™, developed by Siegel with CIBC Capital Markets, including consultation by WisdomTree Investments, Inc., offers an innovative value strategy focused on U.S. equities. Each quarter, the index evaluates the 500 largest U.S. publicly traded companies for operating earnings relative to their valuation and selects the four most undervalued market sectors. The index also includes a tactical market trend response designed to make daily strategic allocations with the aim to generate returns even when the broader market is declining.
“Traditional value indexes often lead to persistently overweighting specific sector allocations,” said Professor Siegel. “This index has a unique methodology for identifying good value opportunities.”
“BCA offers the most comprehensive suite of index options grounded in academic research available on the market today,” said Don Dady, co-founder of Annexus. “This enhanced suite of FIAs will provide advisors and their clients even greater diversification among complimentary indices.”
“We strategically continue to develop solutions and expand our product lineup to meet the growing needs of Americans in retirement,” said Ron Shurts, co-founder of Annexus. “The latest enhancements to the BCA suite of FIAs will provide solutions that reach a larger population of advisors, RIAs and insurance professionals.”
If you’re an advisor, RIA or insurance professional who would like access to these products, contact your Annexus-affiliated Independent Distribution Company. If you are a client looking to grow and protect your retirement savings, ask your financial professional for more information.
About Athene USA
Athene USA is an Iowa-domiciled corporation that serves as the U.S. holding company for Athene’s annuity operations in the United States. Headquartered in West Des Moines, Iowa, Athene USA serves customers in all 50 states, and through its predecessor companies, has been serving American consumers for more than 100 years. Further information about our companies can be found at athene.com.
Annexus designs solutions to help Americans grow and protect their retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. Annexus has forged relationships with many of the industry’s leading insurance carriers and the world’s largest investment banks. Find out more about Annexus and its products at annexus.com.
About Robert Shiller
Shiller is an American economist, best-selling author and Sterling Professor of Economics, Professor of Finance and Fellow at the International Centre for Finance at Yale University. Professor Shiller is ranked among the 100 most influential economists in the world1.
About Jeremy Siegel
Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. Siegel received his Ph.D. from M.I.T. and has written and lectured extensively about the economy and financial markets, monetary policy and interest rates and stock and bond returns. Along with heading the macroeconomics module of the Morgan Bank Finance Program in New York, he is the academic director of the U.S. Securities Industry Institute and is on the Advisory Board of the Asian Securities Industry Association.