Athene and Annexus Announce Expanded Annuity Lineup
March 26, 2019
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 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.
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Any interest earned is subject to certain limitations such as an Annual Spread, a Cap Rate, and Participation Rate. These limitations are declared by the Company before the beginning of each two-year Index Term Period. Please note that the while the interest you earn may be zero it will never be less than zero.
Withdrawals and surrender of taxable amounts are subject to ordinary income tax, and except under certain circumstances, will be subject to an IRS penalty if taken prior to age 59½. Withdrawals in excess of the free amount are subject to a Withdrawal Charge and MVA which may result in the loss of principal.
Barclays Capital Inc. and its affiliates (“Barclays”) is not the issuer or producer of the Products referenced herein and Barclays has no responsibilities, obligations or duties to purchasers in these Products. The Shiller Barclays CAPE® US Sector Risk Controlled 10% USD Total Return Index and the Shiller Barclays Global Index (collectively, the “Indices”) are trademarks owned by Barclays Bank PLC and licensed for use by Athene Annuity and Life Company (“Athene”) as the issuer of one or more fixed indexed annuities (the “Product(s)”). Barclays only relationship with Athene in respect of the Indices is the licensing of the Indices, which is determined, composed and calculated by Barclays without regard to Athene or the Product(s) or the owners of the Product(s). While Athene may for itself execute transaction(s) with Barclays in or relating to the Indices in connection with the Product(s), purchasers acquire the Product(s) from Athene and purchasers neither acquire any interest in the Indices nor enter into any relationship of any kind whatsoever with Barclays upon making a purchase of the Product(s). The Product(s) are not sponsored, endorsed, sold or promoted by Barclays. Barclays does not make any representation or warranty, express or implied regarding the advisability of purchasing the Product(s) or the ability of the Indices to track corresponding or relative market performance. Barclays has not passed on the legality or suitability of the Product(s) with respect to any person or entity. Barclays is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued. Barclays has no obligation to take the needs of Athene or the owners of the Product(s) or any other third party into consideration in determining, composing or calculating the Indices. Barclays has no obligation or liability in connection with administration, marketing of the Product(s).
The Shiller Barclays CAPE® US Sector Risk Controlled 10% USD Total Return Index and the Shiller Barclays Global Index (collectively, the “Indices”) have been developed in part by RSBB, LLC, the research principal of which is Robert J. Shiller. RSBB, LLC is not an investment advisor and does not guarantee the accuracy and completeness of the Indices or any data or methodology either included therein or upon which they are based. RSBB, LLC shall have no liability for any errors, omissions or interruptions therein and makes no warranties expressed or implied, as to the performance or results experienced by any party from the use of any information included therein or upon which it is based, and expressly disclaims all warranties of the merchantability or fitness for a particular purpose with respect thereto, and shall not be liable for any claims or losses of any nature in connection with the use of such information, including but not limited to, lost profits or punitive or consequential damages even, if RSBB, LLC is advised of the possibility of same.
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BARCLAYS SHALL HAVE NO LIABILITY TO THE ISSUER, PURCHASERS OR TO OTHER THIRD PARTIES FOR THE QUALITY, ACCURACY AND/OR COMPLETENESS OF THE INDICES OR ANY DATA INCLUDED THEREIN OR FOR INTERRUPTIONS IN THE DELIVERY OF THE INDICES. BARCLAYS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER, THE PURCHASERS OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDICES OR ANY DATA INCLUDED THEREIN. BARCLAYS MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDICES OR ANY DATA INCLUDED THEREIN. BARCLAYS RESERVES THE RIGHT TO CHANGE THE METHODS OF CALCULATION OR PUBLICATION, OR TO CEASE THE CALCULATION OR PUBLICATION OF THE INDICES, AND BARCLAYS SHALL NOT BE LIABLE FOR ANY MISCALCULATION OF OR ANY INCORRECT, DELAYED OR INTERRUPTED PUBLICATION WITH RESPECT TO THE INDICES. BARCLAYS SHALL NOT BE LIABLE FOR ANY DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR ANY LOST PROFITS AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH, RESULTING FROM THE USE OF THE INDICES OR ANY DATA INCLUDED THEREIN OR WITH RESPECT TO THE PRODUCT(S).
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The WisdomTree Siegel Strategic Value IndexTM (the “Index”) is the exclusive property of Canadian Imperial Bank of Commerce (Canadian Imperial Bank of Commerce, together with its affiliates, “CIBC”). CIBC has engaged Bloomberg Index Services Limited (“Bloomberg”) to maintain and to make certain calculations related to the Index. “Canadian Imperial Bank of Commerce”, “CIBC”, and “Index” (collectively, the “CIBC Marks”) are trademarks or service marks of CIBC. CIBC has licensed use of the CIBC Marks to Athene Annuity and Life Company (“Athene”) for use in one or more fixed indexed annuities offered by Athene (the “Product(s)”). CIBC is not the issuer of the Products and its sole contractual relationship with Athene is to license the Index and the CIBC Marks to Athene.
CIBC, Jeremy Siegel (“Siegel”), senior investment strategy advisor to WisdomTree Investments, Inc. (“WisdomTree”), and WisdomTree each contributed to the development of the Index without considering the needs of Athene or any annuitant. “WisdomTree®” is a registered trademark of WisdomTree. WisdomTree and Siegel have licensed certain rights to CIBC to use their names in connection with the Index and the inclusion of such names in the Index should not be considered or relied upon as a recommendation by WisdomTree or Siegel regarding the use or suitability of the Index. None of CIBC, WisdomTree, Bloomberg or Siegel are affiliated with each other or control or are controlled by each other. None of CIBC, Bloomberg, Siegel or WisdomTree or any other third-party licensor (collectively, the “Index Parties”) to CIBC is acting, or has been authorized to act, as an agent of Athene or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced the Products or provided investment advice or any other advice to Athene or any annuitant. The Index Parties are not the issuer of the Products. Purchasers of the Products neither acquire an interest in the Index nor enter into any relationship of any kind whatsoever with the Index Parties.
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THE INDEX PARTIES MAKE NO REPRESENTATION OR WARRANTY WHATSOEVER, WHETHER EXPRESS OR IMPLIED, REGARDING THE INDEX, ITS DEVELOPMENT AND HAVE NO RESPONSIBILITIES, OBLIGATIONS OR LIABILITIES WITH RESPECT TO ITS INCEPTION, ADJUSTMENT, MAINTENANCE, OPERATION OR CALCULATION. AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES (INCLUDING, WITHOUT LIMITATION, THOSE OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR THE ADVISABILITY OF ANY PERSON PURCHASING ANY PRODUCT), WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN OR RELATING THERETO, AND IN PARTICULAR DISCLAIM ANY GUARANTEE OR WARRANTY AND SHALL HAVE NO LIABILITY AS TO THE QUALITY, ACCURACY, ADEQUACY, TIMELINESS, COMPLETENESS OR AVAILABILITY OF THE INDEX OR ANY DATA INCLUDED THEREIN, THE RESULTS OBTAINED FROM THE USE OF THE INDEX AND/OR THE COMPOSITION OF THE INDEX AT ANY PARTICULAR TIME ON ANY PARTICULAR DATE OR OTHERWISE. THE INDEX PARTIES SHALL NOT BE LIABLE (WHETHER IN NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY ERROR OR OMISSION IN THE INDEX OR IN THE CALCULATION OF THE INDEX, AND THE INDEX PARTIES ARE UNDER NO OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN, OR FOR ANY INTERRUPTION IN THE CALCULATION OF THE INDEX. NO INDEX PARTY SHALL HAVE ANY LIABILITY TO ANY PARTY FOR ANY ACT OR FAILURE TO ACT BY THE INDEX PARTIES IN CONNECTION WITH THE DETERMINATION, ADJUSTMENT OR MAINTENANCE OF THE INDEX. WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL AN INDEX PARTY HAVE ANY LIABILITY FOR ANY DIRECT DAMAGES, LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
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In calculating the level of the Index, the index methodology deducts a maintenance fee of 0.20% per year, calculated daily. This fee will reduce the level of the Index and thus the amount of interest, if any, that will be credited to any Product. Furthermore, while the volatility control applied by CIBC may result in less fluctuation in rates of return as compared to indices without volatility controls, it may also reduce the overall rate of return as compared to other indices not subject to volatility controls.
The “S&P 500®” 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 Athene Annuity and Life Company. 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 Athene Annuity and Life Company. It is not possible to invest directly in an index. Athene Annuity and Life Company’s Products 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 Athene Annuity and Life Company’s Products or any member of the public regarding the advisability of investing in securities generally or in Athene Annuity and Life Company’s Products particularly or the ability of the S&P 500® 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 Athene Annuity and Life Company with respect to the S&P 500® 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 500® is determined, composed and calculated by S&P Dow Jones Indices without regard to Athene Annuity and Life Company or the Athene Annuity and Life Company’s Products. S&P Dow Jones Indices have no obligation to take the needs of Athene Annuity and Life Company or the owners of Athene Annuity and Life Company’s Products into consideration in determining, composing or calculating the S&P 500®. S&P Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and amount of Athene Annuity and Life Company’s Products or the timing of the issuance or sale of Athene Annuity and Life Company’s Products or in the determination or calculation of the equation by which Athene Annuity and Life Company’s Products is 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 Athene Annuity and Life Company’s Products. There is no assurance that investment products based on the S&P 500® will accurately track index performance or provide positive investment 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.
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Athene BCA 2.0 [ANN19 (01/19), ANN19CS08 (01/19), ANN19CS10 (01/19), ANN19CS12 (01/19)] or state variation, Family Endowment Rider [PBEDB (01/19), PBEDBRS (01/19)] or state variation, Balanced Allocation Lifetime Income Rider [ANNIRS (01/19), ANNIRSRS (01/19), ANNIRF (01/19), ANNIRFRS (01/19)] or state variation, Athene Velocity [ANN19 (01/19), ASP19CS (01/19)] or state variation, Athene Velocity Income Rider [ASPIR (01/19), ASPIRRS (01/19)] are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary; see Certificate of Disclosure for full details. Products not available in all states.
This material is a general description intended for general public use. Athene Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (including MA) and D.C., and Athene Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, NY, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. Please reach out to your insurance professional if you have any questions about Athene products or their features.
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1Ranking information from the IDEAS Research Papers in Economics 2008 and 2017 annual lists