A-Cap and Saybrus Partners have launched the Retirement Plus Multiplier Annuity, a new single premium fixed indexed annuity (FIA) offering for the first time exclusive access to the Goldman Sachs Motif Aging of America Dynamic Balance Index.

'As Baby Boomers age, seniors make up an increasingly large portion of Americans, resulting in a long-term increased demand for products and services geared towards managing seniors' health and lifestyle,' stated Motif.

The Retirement Plus Multiplier Annuity features four crediting strategies, a fixed interest account, principal protection from loss, and a choice of accumulation or income enhancing benefits to create a customized solution for retirees' individual goals.

Created by Goldman Sachs, the index, dynamically allocates to equities, as represented by the Motif Aging of America Index and US fixed income, as represented by 10-Year US Treasury Rolling Futures Index. The Motif Aging of America index seeks to provide targeted exposure to companies in the healthcare and real estate sectors that may benefit from the growth in the older population in the United States. Such segments can include cancer care, cardiovascular care, orthopedic care, diabetes care, medicare insurers, and assisted living. Exposure to 10- Year US Treasury Rolling Futures Index is based on a daily-observed momentum signal.

The Goldman Sachs underlying also includes a volatility control mechanism aimed at generating 'more stable, smooth returns over time'. Risk is monitored daily, and re-balancing generally results in higher weighting in components with lower historical volatility and less weight to those with higher historical volatility.  The index has a 5% volatility cap and to the extent the volatility cap is exceeded, the money market allocation is increased. The index is calculated on an excess return basis.

The Retirement Plus Multiplier offers two index accounts based on the Goldman Sachs Motif Aging of America Dynamic Balance Index including a one-year point to point with participation rate and a three-year point to point with participation rate.

The thematic index coupled with the A-Cap insurance platform and the Retirement Plus Multiplier Annuity will enable senior investors to grow their retirement returns based on a 'unique formula tailored to the needs of the aging senior market', according to Doug George (pictured), head of life and annuity for A-Cap.

'Client financial needs in retirement are a delicate balance of opportunity and risk,' said George. 'Our team has been working hard to bring to market a compelling planning vehicle that offers clients a way to reap the rewards of long-term growth trends while achieving a level of security and reliability for their hard-earned savings.'

'Baby Boomers are reshaping the face of retirement in many ways,' said Andrew Sheen, managing director, product development for Saybrus Partners. 'The impressive size and lifestyle focus of this group is driving expansion and demand for new offerings in sectors like healthcare and real estate. With the unique index crediting strategies offered within Retirement Plus Multiplier Annuity, contract holders can participate in the potential growth of the companies that serve their own demographic.'

There are over 200 structured notes linked to the two Motif's flagship indices marketed by Goldman Sachs, according to SRP data. SRP data also shows that risk control indices have become a popular choice for pension and life insurance products.

Other popular risk control indices used in the US annuities market include the Barclays Armour EUR Index (21 products), Citi Dynamic Asset Selector 5 ER Index (14 products), and Goldman Sachs DynaMO8 ER (six products).

This the latest addition to two of A-Cap's insurance subsidiaries, Sentinel Security Life Insurance Company and Atlantic Coast Life Insurance Company. The product will be available through Saybrus Partners and a select group of independent distributors.

Click in the link to see the brochure of the new Retirement Plus Multiplier Annuity.

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