Advanced outcomes annuity’s new hedged equity funds create structured outcome investments with an active approach
March 07–HOUSTON–(BUSINESS WIRE)–Corebridge Financial today announced that its Advanced Outcomes Annuity®, a variable annuity featuring structured outcome investments, now includes hedged equity funds managed by Milliman Financial Risk Management (Milliman FRM) and sub-advised by Capital Group, home of the American Funds®.
“Our Advanced Outcomes Annuity helps financial professionals take action for their clients as they seek to target higher growth than many traditional structured annuities, provide strong downside protection and deliver a valuable level of flexibility,” said Bryan Pinsky, President of Individual Retirement at Corebridge Financial. “We are excited to partner with renowned investor Capital Group to bring active management to Advanced Outcomes Annuity with two new structured outcome funds managed by Milliman FRM.”
A recent Greenwald Research survey commissioned by Corebridge revealed that financial professionals want to invest in protection with the potential for upside growth. Amid stock market volatility and interest rate increases, 4 in 10 financial professionals reported they are increasingly using structured solutions that offer targeted downside protection.
Taking The Next Step Forward
The new hedged equity funds, Milliman-Capital Group Hedged U.S. Growth Fund and Milliman-Capital Group Hedged U.S. Income and Growth Fund, are structured outcome funds that take an active approach in pursuing attractive returns while seeking to limit downside market exposure. Capital Group first identifies a select list of securities using its distinct investment process. Milliman FRM then constructs the portfolio with an options overlay designed for quarterly resets. The Capture-Reset-Reinvest capability is part of every Advanced Outcomes Annuity investment strategy and gives financial professionals and their clients the opportunity to capture investment gains, refresh upside potential and downside protection, and reinvest in a new strategy with a different targeted outcome.
“We are thrilled to join with Corebridge Financial and Capital Group to take the next step forward with the Advanced Outcomes Annuity,” said Adam Schenck, Principal, Managing Director and Head of Fund Services, Milliman Financial Risk Management. “In this challenging investment environment, financial professionals want to capture growth through equities but are wary of market declines. Variable annuities featuring structured outcome investments can become an important part of a portfolio that emphasizes long-term growth while seeking to protect against a prolonged period of market decline.”
“We are excited to partner with Corebridge Financial and Milliman FRM to bring our proven track record of active management to Advanced Outcomes Annuity and the structured investing space,” said Steve Joyce, Insurance Business Segment Leader, Capital Group.
A Trigger Strategy
In addition to the new hedged equity funds, Advanced Outcomes Annuity recently added a trigger strategy to the structured outcome funds managed by Milliman FRM. The trigger strategy targets predefined growth when the referenced index performance is either flat or positive and provides targeted downside protection using a buffer against market losses over the six-month fund term.
For more information on Corebridge’s variable annuity featuring structured outcome investments, please visit the Advanced Outcomes Annuity website here.
About Corebridge Financial
Corebridge Financial (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $355 billion in assets under management and administration as of December 31, 2022, Corebridge is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube, Facebook and Twitter.
About Milliman Financial Risk Management
Milliman Financial Risk Management LLC is a global leader in financial risk management to the retirement savings industry. Milliman FRM provides investment advisory, hedging, and consulting services on approximately $161 billion in global assets (as of December 31, 2022). Established in 1998, the practice includes more than 200 professionals operating from four trading platforms around the world (Chicago, London, Amsterdam and Sydney). Milliman FRM is a subsidiary of Milliman, Inc. Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For more information, visit milliman.com/FRM.
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931.
As of December 31, 2022, Capital Group manages approximately $2.2 trillion in equity and fixed-income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.