Security Benefit Adds Two Diversified Index Credit Options for Strategic Growth Series
March 30, 2021 by Security Benefit
TOPEKA, Kan.–(BUSINESS WIRE)–Security Benefit today announced the addition of two new index accounts based on the S&P 500® Factor Rotator Daily RC2 7% Index (Factor Rotator) and the S&P Multi-Asset Risk Control (MARC) 5% Index. Both diversified indexes are now options in new purchases of the firm’s Strategic Growth Series annuities, which offer contract-holders the potential ability to safely accumulate retirement assets without the risk of market loss.
The new index options will also be available to existing contract owners of Strategic Growth Annuity, and Strategic Growth Plus Annuity, on contract anniversaries with an index term date beginning on or after March 29, 2021.
“Our Strategic Growth Series fixed index annuities were met with tremendous reception in the IMO market when we introduced them in 2019,” said Doug Wolff, president of Security Benefit Life Insurance Company. “These new index accounts give financial professionals and their clients more dynamic crediting options to help diversify portfolios and reach retirement savings goals.”
The new S&P 500® Factor Rotator Daily RC2 7% Index was developed in-house by the Security Benefit Investment Team. It is owned by S&P Dow Jones Indices LLC and calculated daily by S&P.
“There is a broad and a deep series of academic and empirical research supporting positive risk premia being earned by equity investors’ exposures to securities with specific characteristics, or factors,” noted Joe Wittrock, Chief Investment Officer for Security Benefit. “We leveraged this research and the institutionalization of factor indices to create a crediting approach that recognizes the cyclicality of factor returns by delivering a simple, transparent index that rotates exposures amongst 5 well known factors (Quality, Value, Momentum, Low Volatility, High Dividend) and delivers that to our annuity policyowners by targeting a 7% annualized level of volatility. We are excited that Factor Rotator is now an option for Security Benefit contract holders.”
Every month, the weighted-return S&P 500® Factor Rotator Index seeks to track the two best performing factors based on past risk-adjusted returns. Dynamic rebalancing allows for a pivot in the future as factor leadership changes. In seeking to maintain volatility at 7%, the index varies allocations between the equity factor components, the Treasury Note Futures Index, and cash, depending on market performance on a daily basis.
“A fixed index annuity (FIA), like the two in our Strategic Growth Series, offers the best features of a traditional fixed annuity — a guarantee of the purchase payment and tax deferral — combined with the opportunity to increase the value of retirement savings,” added Wolff. “Using an index as an interest crediting option, an FIA has the potential to credit interest when the index goes up. But if it goes down, the principal and previously credited interest are locked in, unlike other savings vehicles.”
In addition to the new Factor Rotator Index, Security Benefit added the S&P MARC 5% Index as another multi-asset diversification option in the Strategic Growth Series. The S&P MARC 5% Index, developed by S&P Dow Jones Indices LLC and calculated daily by S&P, is designed to track the performance of a risk-weighted portfolio consisting of three asset classes — equities, commodities, and fixed income — with a target volatility level of 5%. The three component indexes include the S&P 500® Excess Return Index, the S&P GSCI Gold Excess Return Index, and the S&P 10-Year U.S. Treasury Note Futures Excess Return Index. Should one or more of the markets experience a downturn, the index systematically re-balances to the less volatile asset classes. If all asset classes are volatile, the index risk control seeks to reduce market exposure and increase the allocation to interest free cash.
For daily valuations and more information about the S&P 500® Factor Rotator Daily RC2 7% Index, or the S&P Multi-Asset Risk Control (MARC) 5% Index, visit SPIndices.com and enter either the Index ticker symbol SPXFRRET or SPMARC5P in the search field.
About Security Benefit
Security Benefit Corporation (“Security Benefit”), through its subsidiary Security Benefit Life Insurance Company (SBL), a Kansas-based insurance company that has been in business for 129 years, is a leader in the U.S. retirement market. Security Benefit together with its affiliates offers products in a full range of retirement markets and wealth segments for employers and individuals and held $46.4 billion in assets under management as of December 31, 2020. Security Benefit, an Eldridge business, is one of the fastest growing U.S. retirement companies and continues its mission of helping Americans To and Through Retirement®. Learn more at www.securitybenefit.com and follow us on LinkedIn, Facebook or Twitter.
Security Benefit Life Insurance Company (SBL) is not a fiduciary and the information provided is not intended to be investment advice. This information is general in nature and intended for use with the general public. For additional information, including any specific advice or recommendations, please visit with your financial professional.
Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA/NCUSIF insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.
The Security Benefit Strategic Growth Series, modified single premium, deferred fixed index annuity contracts are issued by Security Benefit Life Insurance Company (SBL). In most states, the Strategic Growth Annuity and Strategic Growth Plus Annuity are issued on form 5600 (9-19). In Alaska, Connecticut, Idaho, Indiana, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington the Strategic Growth Annuity and Strategic Growth Plus Annuity form is ICC19 5600 (9-19).
Fixed index annuities are not stock market investments and do not directly participate in any equity, bond, other security or commodities investments. Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; neither an index nor any fixed index annuity is comparable to a direct investment in the equity, bond, other security or commodities markets.
“S&P 500® Index,” and “S&P 500® Factor Rotator Daily RC2 7% Index” are products of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (SPDJI) and Standard & Poor’s Financial Services LLC, and have been licensed for use by Security Benefit Life Insurance Company (SBL). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); third party licensor trademarks are trademarks of Standard & Poor’s Financial Services LLC and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by SBL. SBL’s Annuity in which the Index appears is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or Standard & Poor’s Financial Services LLC, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index, or S&P 500® Factor Rotator Daily RC2 7% Index.
The “S&P Multi-Asset Risk Control (MARC) 5% Index” (S&P MARC 5 Index) is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (SPDJI), and has been licensed for use by Security Benefit Life Insurance Company (SBL). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (S&P); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by SBL. It is not possible to invest directly in an index. SBL’s annuities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, S&P Dow Jones Indices). S&P Dow Jones Indices do not make any representation or warranty, express or implied, to the owners of the SBL annuity or any member of the public regarding the advisability of investing in securities generally or in purchasing SBL’s annuity product particularly or the ability of the S&P Multi-Asset Risk Control (MARC) 5% Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices only relationship to SBL with respect to the S&P MARC 5 Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P MARC 5 Index is determined, composed and calculated by S&P Dow Jones Indices without regard to SBL or the annuity product(s) in which the Index is offered. S&P Dow Jones Indices have no obligation to take the needs of SBL or the owners of SBL’s annuities into consideration in determining, composing or calculating the S&P MARC 5 Index. S&P Dow Jones Indices is not responsible for and have not participated in the determination of the prices, and amount of SBL’s annuities or the timing of the issuance or sale of such annuities or in the determination or calculation of the equation by which such annuities are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of SBL’s annuities. There is no assurance that products which include the S&P MARC 5 Index will accurately track index performance or provide positive returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P MARC 5 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY SBL, OWNERS OF THE SBL ANNUITY PRODUCT OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P MARC 5 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND SBL, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
Michael Castino, Director of Public Relations, Security Benefit
Jake Daubenspeck, Senior Vice President, Prosek Partners