One of America’s leading providers of retirement savings products, Athene, has teamed up with Annexus, an independent designer of fixed indexed annuities (FIAs) to launch a new and improved suite of products. The new Athene®BCA® 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.
According to a recent press release, BCA 2.0 provides a variety of solutions beyond accumulation, including legacy growth riders and optional lifetime income, both available for a charge. Athene and Annexus will also offer a new FIA, Athene Velocity, with a built-in income rider for no additional charge.
“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. Undervalued equities from the world’s three largest developed markets (the United States, Eurozone and Japan) are identified using Shiller’s CAPE® ratio. With a goal to provide more stable returns through a variety of market environments, it rebalances between the undervalued equities, bonds and commodities every month.
“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™ was developed by Siegel with CIBC Capital Markets, with consultation by WisdomTree Investments, Inc. It offers an innovative value strategy focused on U.S. equities. Every 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 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.”
Written by Rachel Summit