Global Atlantic Financial Group has overhauled its entire suite of fixed index annuities (FIAs), is targeting broker-dealers, banks and independent agents with enhanced income and growth options for retirement investors that 'are immune to market volatility'.

'Retirees want a protected source of income for retirement needs,' said Paula Nelson (pictured), president, retirement, at Global Atlantic. 'Our income options are enhanced and offer the ability to build guaranteed lifetime income to, and through, retirement.'

The annuities provider's expanded range offers access to two traditional market cap indices such as the S&P 500 and the Russell 2000 indices as well as to two risk control strategies provided by asset managers as opposed to the more common proprietary indices designed by banks.

The BlackRock Diversa index is a multi-asset index designed to deliver a globally diversified portfolio with daily volatility-controls to help mitigate downside risk. Constructed with iShares ETFs, the index was designed as a 'transparent and low cost alternative for fixed index annuity providers'. Because the index is diversified across assets and regions, it provides the potential for more consistent performance than a traditional stock index. The index seeks to capture market opportunities in various environments by dynamically responding to trends in asset returns.

The Franklin US Index is uses Franklin Templeton Investments' 'smart screen strategy which reacts to changing market conditions in an effort to create a smoother ride over time' and is focused on US Large Cap stocks. The index is comprised of the LibertyQ US Large Cap Index, S&P 10YR Treasury Futures Index, S&P 5YR Treasury Futures Index, and cash with target risk of 7%.

The Franklin US Index starts with a "smart screen" approach to stock selection-based upon more than 70 years of active management experience. The smart screen starts with a universe of 1,000 well-recognised US stocks and looks for those that demonstrate financial quality and value. The index also looks at technical signals such as momentum and low volatility for diversification purposes. Only the top 250 stocks are then selected to act as the growth engine of the index.

The Franklin US Index also deplys the asset managers' MarketNav Technology to allocate across asset classes in different market conditions. In low volatility scenarios, the index retains a higher stock allocation, which helps boost the engine's performance. When markets are calmer, the index's MarketNav Technology reacts by buying more stocks in search of long-term growth potential.

If markets go choppier, the index uses bonds to smooth the ride. If interest rates are rising, the index allocates to 5-year US treasuries in an effort to maintain steady growth; whereas if interest rates are falling, the index shifts to 10-year US treasuries. In unstable and volatile markets, the index uses cash as a safe harbour, to maintain liquidity and preserving asset value.

Global Atlantic's FIA offering has gained significant traction in the marketplace over the last year, according to the Limra Secure Retirement Institute (SRI). The industry research body reported that the company's FIA sales rank rose five places from thirteenth at mid-year 2017 to eighth, as of June 30, 2018.

"The updated lineup seeks to build on this momentum," said a spokeswoman at Global Atlantic.

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