With market volatility and stable retirement savings topping consumer concerns, Sammons® Financial is introducing a new financial index designed by Fidelity Investments.
The Fidelity Multifactor Yield Index 5% ERSM leverages Fidelity’s established legacy of asset management capabilities. The index will be added into Sammons Financial’s portfolio of new fixed indexed annuity, or FIA, products.
A factor is a characteristic of a security that helps explain its risk and return behaviors. This index performs by combining key factors in such a way to help lower overall risk, while providing the potential to consistently outperform the broader market.
The Fidelity Multifactor Yield Index 5% ERSM includes a blend of six equity factor indices. Each factor and weighting was chosen based on its potential ability to enhance returns, manage risk, and target specific outcomes. The factors within the new index include:
— Dividend Yield – securities paying higher dividends — Value – securities that are less expensive relative to others — Momentum – positive-trending securities — Quality – financially healthy companies — Low Volatility – lower-risk securities — Size – smaller, potentially more agile companies
“These factor indices were weighted with a tilt toward dividend yield,” said Bryce Biklen, chief distribution officer for Sammons Financial’s Annuity Division. “This strategic design aims to optimize growth potential, which is a key goal for many of our clients.”
In addition to the combination of investment factors, a 5% volatility control target aims to maintain consistency through various market conditions. To manage volatility control, a fixed-income overlay is applied and allocates between 10-year Treasuries and cash to account for potential changes in interest rates. The overlay then adjusts allocation of the equity index on a daily basis to meet the 5% volatility target.
“We’re committed to helping our clients solve challenges and continuously look for opportunities to leverage our asset management capabilities to provide them with solutions,” said Matt Aurelia, senior vice president, Fidelity Institutional Asset Management. “We are excited to expand our relationship with Sammons Financial and support their clients.”
The new Fidelity Multifactor Yield Index 5% ERSM is currently available through Sammons Institutional GroupSM, Inc. And Midland National® Life Insurance Company.
“Our agents – and more importantly their clients – expect innovation backed by expertise in meeting today’s financial planning challenges,” said Biklen. “This new index is a sound tool to meet changing client needs.”
About Sammons Financial
The companies of Sammons Financial℠ are here to help families and businesses protect their future, so they can enjoy life’s moments today. A subsidiary of Sammons Enterprises, Inc., Sammons Financial is a group of privately-owned financial companies, including several of the most enduring and stable companies in our industry, and is comprised of three member companies: Midland National® Life Insurance Company, which includes Sammons® Corporate Markets; North American Company for Life and Health Insurance®; and Sammons Institutional GroupSM, which consists of Midland Retirement DistributorsSM and Sammons Retirement Solutions®. Together, the companies offer some of today’s most sought-after life insurance, annuity, and retirement planning products. Sammons Financial: With You for Every Moment®.
The Fidelity Multifactor Yield Index 5% ER (Index) is the property of Fidelity Product Service LLC (FPS) a Fidelity Investments company. Neither the Index nor any information related to the Index presented in this document is investment advice nor a recommendation to buy or sell any security, strategy or investment product. FPS is not an investment adviser, broker-dealer, or issuer of securities and it does not have any fiduciary responsibility in respect of the Index, licensee(s) of the Index, or any product that may utilize the Index.
The Index has been licensed for use by Sammons Financial Group on behalf of its insurance subsidiaries, Midland National or North American. Fidelity, nor any of its affiliates, or any of their respective third party licensors (including the Index calculation agent, as applicable) endorses, sells, or promotes any product sold by Midland National and North American. Fidelity has no obligation or liability in connection with the administration or marketing of any Midland National and North American product. Fidelity makes no representation or warranty, express or implied, to the owners of any Midland National and North American product or any member of the public regarding the advisability of investing in any Midland National or North American product or the ability of the Index to track general market performance.
FPS disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. FPS does not guarantee the adequacy, accuracy, completeness, timeliness, and/or performance of any Index or any data related thereto and shall have no liability in connection with any Index or Index calculation, errors, omissions or interruptions of any Fidelity Index or any data included therein. The Indices are unmanaged and are not available for direct investment. FPS uses an independent calculation agent to calculate each Index.
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