Advanced Outcomes Annuity’s New Hedged Equity Funds Create Structured Outcome Investments with an Active Approach
Corebridge Financial today announced that its Advanced Outcomes Annuity®, a variable annuity featuring structured outcome investments, now includes hedged equity funds managed by Milliman Financial Risk Management (Milliman FRM) and sub-advised by Capital Group, home of the American Funds®.
“Our Advanced Outcomes Annuity helps financial professionals take action for their clients as they seek to target higher growth than many traditional structured annuities, provide strong downside protection and deliver a valuable level of flexibility,” said Bryan Pinsky, President of Individual Retirement at Corebridge Financial. “We are excited to partner with renowned investor Capital Group to bring active management to Advanced Outcomes Annuity with two new structured outcome funds managed by Milliman FRM.”
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.
The new hedged equity funds, Milliman-Capital Group Hedged U.S. Growth Fund and Milliman-Capital Group Hedged U.S. Income and Growth Fund, are structured outcome funds that take an active approach in pursuing attractive returns while seeking to limit downside market exposure. Capital Group first identifies a select list of securities using its distinct investment process. Milliman FRM then constructs the portfolio with an options overlay designed for quarterly resets. The Capture-Reset-Reinvest capability is part of every Advanced Outcomes Annuity investment strategy and gives financial professionals and their clients the opportunity to capture investment gains, refresh upside potential and downside protection, and reinvest in a new strategy with a different targeted outcome.
“We are thrilled to join with Corebridge Financial and Capital Group to take the next step forward with the Advanced Outcomes Annuity,” said Adam Schenck, Principal, Managing Director and Head of Fund Services, Milliman Financial Risk Management. “In this challenging investment environment, financial professionals want to capture growth through equities but are wary of market declines. Variable annuities featuring structured outcome investments can become an important part of a portfolio that emphasizes long-term growth while seeking to protect against a prolonged period of market decline.”
“We are excited to partner with Corebridge Financial and Milliman FRM to bring our proven track record of active management to Advanced Outcomes Annuity and the structured investing space,” said Steve Joyce, Insurance Business Segment Leader, Capital Group.
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.
For more information on Corebridge’s variable annuity featuring structured outcome investments, please visit the Advanced Outcomes Annuity website.
Advanced Outcomes Annuity offers structured outcome investment strategies with underlying funds that have characteristics unlike many other traditional investment products and may not be suitable for all investors. There is no guarantee that the outcomes for a specific fund term will be realized. An investment in Advanced Outcomes Annuity involves investment risk, including possible loss of principal. For more information regarding whether an investment in these funds is right for you, please see the product and fund prospectuses.
Hedged equity funds – Equity exposure is subject to an Extended Buffer rate in down markets and a Cap rate in up markets.
Structured outcome funds – Equity exposure is subject to a Par Down, Floor or Buffer rate in down markets and a Par Up, Cap, Spread or Trigger rate in up markets.
Investment strategies terms pertain only to the fund term itself and not the annuity. Advanced Outcomes Annuity features a 6-year declining withdrawal charge schedule.
There is no assurance that a variable portfolio’s strategy or investment process will achieve its specific investment objectives.
Underlying Funds may employ Strategies which seek to provide a ‘structured outcome’ investment experience. The upside capture parameters could limit the upside participation of these Underlying Funds. Conversely, downside protection parameters provide limited protection in the event of decreasing referenced index performance. There is no guarantee that these Underlying Funds will completely protect against referenced index price decreases. The parameters of the Underlying Funds are designed to attempt to achieve their objectives over the entirety of the Underlying Fund’s outcome period. If you invest in these Underlying Funds after its specified outcome period has already started, you risk your investment not experiencing the full effect of the parameters. The specified outcomes of these Underlying Funds may not be realized, and a degree of under or over performance is likely. For more information, please see the Underlying Funds’ prospectuses.
Variable annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and if taken prior to age 59½, an additional 10% federal tax may apply.
An investment in Advanced Outcomes Annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Products and features may vary by state and may not be available in all states or firms. We reserve the right to change fees for features described in this material; however, once a contract is issued, the fees will not change. The purchase of Advanced Outcomes Annuity is not required for, and is not a term of, the provision of any banking service or activity.
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 optional benefit guarantees 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.
Advanced Outcomes Annuity is sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained by calling 1-877-445-1262. Investors should read the prospectus carefully before investing.
Advanced Outcomes Annuity is issued by American General Life Insurance Company (AGL), Houston, TX, in all states except New York. AGL does not solicit, issue or deliver policies or contracts in the state of New York. Distributed by AIG Capital Services, Inc. (ACS), member FINRA. All companies above are subsidiaries of Corebridge Financial, Inc. Corebridge Financial and Corebridge are marketing names used by subsidiaries of Corebridge Financial, Inc.
Policy form number: AG-807 (06/21)
About Corebridge Financial
Corebridge Financial (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $355 billion in assets under management and administration as of December 31, 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.
About Milliman Financial Risk Management
Milliman Financial Risk Management LLC is a global leader in financial risk management to the retirement savings industry. Milliman FRM provides investment advisory, hedging, and consulting services on approximately $161 billion in global assets (as of December 31, 2022). Established in 1998, the practice includes more than 200 professionals operating from four trading platforms around the world (Chicago, London, Amsterdam and Sydney). Milliman FRM is a subsidiary of Milliman, Inc. Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For more information, visit milliman.com/FRM.
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931.
As of December 31, 2022, Capital Group manages approximately $2.2 trillion in equity and fixed-income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.