New FIA deploys J.P. Morgan factor play

National Western Life Insurance Company has launched the NWL Capital Solutions, a 10-year FIA that offers exclusive access to the J.P. Morgan Factor Focus index, and seven different index strategy options, including the Dow Jones Industrial Average and S&P multiasset risk control (MARC) 5% Index.

The J.P. Morgan Factor Focus index was introduced in the US annuities market in the summer of 2022 via the insurers’ newest FIA - the NWL New Frontiers.

The J.P. Morgan Factor Focus index is calculated on an excess return basis and provides a dynamic rules-based allocation to an equity constituent - the J.P. Morgan U.S. Minimum Volatility ETF and a bond component - the J.P. Morgan Core Bond Index, offering dynamic allocation to the U.S. dollar fixed income market, with a volatility target level of five percent.

The S&P MARC 5% index which debuted in the US annuities market at the end of 2017 was designed to track the performance of a risk-weighted portfolio consisting of three asset classesequities, commodities and fixed income - represented by three component indices: the S&P 500 Excess Return Index, the S&P GSCI Gold Excess Return Index and the S&P 10-Year US Treasury Note Futures Excess Return Index. S&P Marc 5% is dynamically rebalanced between the three indices and the cash component to target a five percent level of volatility.