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US insurer adds structured outcome investments with an ‘active approach’
from SRPInsight 23
by SRP & FOW
Annuity provider Corebridge Financial has added two hedged equity funds to its Advanced Outcomes Annuity, a variable annuity that includes structured outcome investments.
achive returns while seeking to limit downside market exposure.
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The new hedged equity funds from Milliman Financial Risk Management (Milliman FRM), Milliman-Capital Group Hedged U.S. Growth Fund and MillimanCapital Group Hedged U.S. Income and Growth Fund, are structured outcome funds that take an active approach to
The funds are based on a portfolio of securities using an options overlay designed for quarterly resets. The ‘capturereset-reinvest’ capability is part of each Advanced Outcomes Annuity and was designed to give financial professionals and investors ‘the opportunity to capture investment gains, refresh upside potential and downside protection, and reinvest in a new strategy with a different targeted outcome’, according to Bryan Pinsky (pictured), president of individual retirement at Corebridge Financial.
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.
‘In this challenging investment environment, financial professionals want to capture growth through equities but are wary of market declines,’ said Adam Schenck, Principal, Managing Director and Head of Fund Services, Milliman Financial Risk Management. 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.
