New index offers first-time access to Dimensional’s systematic, research-driven approach in a fixed index annuity
Corebridge Financial today announced the introduction of the Dimensional US Foundations Index, an index created by Dimensional Fund Advisors for use exclusively in The Power Series of Index Annuities®, Corebridge’s family of fixed index annuities.
Dimensional Fund Advisors, a leading global asset management firm, applies a scientific rigor to investment solutions by drawing upon decades of academic and empirical research from some of the world’s foremost economists, including Nobel laureate Robert Merton. The Dimensional US Foundations Index will be distributed through Market Synergy Group (MSG), one of the nation’s largest networks of independent marketing organizations.
“Our distribution partners count on Corebridge Financial to be at their side, inspiring action to move financial futures forward,” said Bryan Pinsky, President, Individual Retirement, Corebridge Financial. “We are excited to work with Dimensional Fund Advisors and Market Synergy Group to bring our partners and their clients a dynamic index built on innovative volatility metrics and prize-winning financial science.”
“We are pleased to introduce Dimensional’s systematic, research-driven approach to fixed index annuities,” said Carlo Venes, Co-Head of Global Client Group & VP at Dimensional Fund Advisors. “For decades, Dimensional has supported a range of investment solutions that help financial professionals plan, meet and advance retirees’ portfolio goals. The new Dimensional US Foundations Index furthers our commitment to designing research-based solutions to solve for retirement savers’ complex range of financial needs.”
The Dimensional US Foundations Index emphasizes diversified exposure to small-cap, value and high profitability stocks to pursue higher expected returns than the overall market. The Index also evaluates price changes in commodity futures and targets widening yield spreads in US Treasury bonds to help generate higher growth potential while maintaining a targeted level of volatility. Dimensional combines its research-driven approach with historical data from Salt Financial’s truVol® Risk Control Engine, a patent-pending tool that captures higher-frequency, intraday data to adapt more quickly to changing trends across equities, fixed income and commodities.
“Our financial professionals have relied for many years on The Power Series of Index Annuities to help clients save more for retirement while protecting assets and income from market downturns,” said Lance Sparks, President, Market Synergy Group. “The Dimensional US Foundations Index is the next step forward, leveraging a sophisticated, systematic approach to create more choice and flexibility in diversifying portfolios.”
The Power Series of Index Annuities are issued by American General Life Insurance Company (AGL), a subsidiary of Corebridge Financial, Inc., formerly known as AIG Life & Retirement. These annuities offer tax deferral, principal protection against down markets, growth potential through a diverse range of index interest accounts, and guaranteed lifetime income options to help consumers prepare for retirement. Guarantees are backed by the claims-paying ability of AGL. Additional information about The Power Series of Index Annuities can be found on corebridgefinancial.com.
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Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be suitable or appropriate for all individuals.
Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if individuals make withdrawals or surrender their annuity before age 59½. Individuals should consult their tax advisor regarding their specific situation.
Diversification does not ensure a profit or protect against loss. Stocks, bonds and commodities are subject to risks, including the possible loss of principal. Bonds are subject to interest rate, issuer, credit, inflation, and liquidity risk. Government bonds and Treasury bills are backed by the full faith and credit of the U.S. government if held to maturity. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all individuals.
The Dimensional US Foundations Index (the “Index”) is sponsored and published by Dimensional Fund Advisors LP (“Dimensional”), which has contracted with Salt Financial LLC (“Salt”) (each of Dimensional and Salt, a “Licensor”, and which shall include each of their respective directors, officers, employees, representatives, delegates or agents) to provide intellectual property that is used by Dimensional in connection with the maintenance and calculation of the Index. The use of “Dimensional” in the name of the Index and the related stylized mark(s) are service marks of Dimensional and have been licensed for use by American General Life Insurance Company (“AGL”). AGL has entered into a license agreement with Dimensional providing for the right to use the Index and related trademarks in connection with the Index Annuity (the “Annuity”). The Annuity is not sponsored, endorsed, sold or promoted by any Licensor, and no Licensor makes any representation regarding the advisability of investing in such Annuity. No Licensor has any responsibilities, obligations or duties to investors in the Annuity, nor does any Licensor make any express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use with respect to the Index. No Licensor guarantees the accuracy, timeliness or completeness of the Index or any data included therein or the calculation thereof or any communications with respect thereto, and each has no liability for any errors, omissions or interruptions of the Index, or in connection with its use. In no event shall any Licensor have any liability of whatever nature for any losses, damages, costs, claims and expenses (including any special, punitive, direct, indirect or consequential damages (including lost profits)) arising out of matters relating to the use of the Index, even if notified of the possibility of such damages. Each Licensor has provided AGL with all material information related to the Index methodology and the maintenance and calculation of the Index. No Licensor makes any representation with respect to the completeness of information related to the Index provided by AGL in connection with the offer or sale of any Annuity. No Licensor published or approved this document, nor does any Licensor accept any responsibility for its contents or use.
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.
All contract and benefit guarantees including any fixed account crediting rates or annuity rates are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased.
The Power Series of Index Annuities are issued by American General Life Insurance Company (AGL), Houston, Texas. Contract Numbers: AG-800 (12/12) and AG-801 (12/12). AGL is a member company of Corebridge Financial, Inc. The underwriting risks, financial and contractual obligations, and support functions associated with the annuities issued by AGL are its responsibility. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit, issue or deliver policies in the state of New York. Annuities and riders may vary by state and are not available in all states. This material is not intended for use in the states of Idaho and New York.
Not FDIC or NCUA/NCUSIF Insured
May Lose Value • No Bank or Credit Union Guarantee
Not a Deposit • Not Insured by any Federal Government Agency
About Corebridge Financial
Corebridge Financial (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $345 billion in assets under management and administration as of September 30, 2022, Corebridge is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube, Facebook and Twitter.