The PIMCO Global Optima Index™ Combines the
Expertise of Two Industry Leaders and Is Available Exclusively in
the Power Series of Index Annuities®
American International Group, Inc. (NYSE: AIG) today announced
the launch of the new PIMCO Global Optima Index, developed
exclusively by Pacific Investment Management Company LLC (PIMCO)
for AIG’s Power Series of Index Annuities. These fixed index
annuities are issued by American General Life Insurance Company
(AGL) and The Variable Annuity Life Insurance Company (VALIC), both
member insurance companies of AIG.
The PIMCO Global Optima Index provides the opportunity for more
growth potential than indices that focus solely on the U.S. or a
single sector. It seeks to outperform by using quantitative rules
to adjust its allocations across a diverse range of U.S. equity,
international equity and U.S. fixed income markets.
“We are really excited to partner with PIMCO to bring consumers
a new index that combines the expertise of a global leader in asset
management with the retirement income knowledge and innovativeness
of one of the world’s largest insurance organizations,” said Todd
Solash, President, Individual Retirement, AIG. “By adding the PIMCO
Global Optima Index to our Power Series Index Annuities,
individuals can enjoy the same level of principal protection they
have today, while potentially benefiting from more growth
opportunities.”
To help boost returns, the Index uses an alternative (also known
as “smart beta”) approach to equity rebalancing. Equity weightings
are rebalanced monthly, using market size or capitalization as a
starting point and favoring those sectors that have experienced
strong gains (momentum) or appear to be underpriced (value).
Allocations between equities and fixed income are then adjusted
daily for risk management.
The Index aims for a high equity allocation in up markets and
has the ability to allocate up to 100% equities. In down markets,
allocations can be quickly shifted to fixed income to help reduce
risk. Cash may also be used in times of extreme market
volatility.
“We have a history of managing global quantitative strategies
and sought to incorporate our investment insights into the
construction of this new index,” noted Robert Young, head of
PIMCO’s U.S. Financial Institutions Group. “The PIMCO Global Optima
Index is one of the first global quantitative indices to
incorporate momentum and value signals to be made available in this
market. We are happy to partner with AIG to introduce it throughout
the U.S.”
The PIMCO Global Optima Index is part of AIG’s Power Series of
Index Annuities. While it is not available for direct investment,
the Index offers consumers the potential to earn interest based
partly on its performance. The Power Series of Index Annuities
combine tax deferral, principal protection against down markets,
growth potential through a diverse range of index interest
accounts, and guaranteed lifetime income options to help clients
prepare for retirement. Guarantees are backed by the claim-paying
ability of the issuing insurer.
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 clients make withdrawals
or surrender their annuity before age 59½. Clients should consult
their tax advisor regarding their specific situation.
The PIMCO Global Optima Index™ (the “Index”) is a comprehensive
equity and bond index, offering exposure to global equity and U.S.
fixed income markets. The Index is a trademark of Pacific
Investment Management Company LLC (“PIMCO”) and has been licensed
for use for certain purposes by AGL with the Power Series of Index
Annuities (the “Product”). The Index is the exclusive property of
PIMCO and is made and compiled without regard to the needs,
including, but not limited to, the suitability or appropriateness
needs, as applicable, of AGL, the Product, or owners of the
Product. The Product is not sold, sponsored, endorsed or promoted
by PIMCO or any other party involved in, or related to, making or
compiling the Index. PIMCO does not provide investment advice to
AGL with respect to the Product or to owners of the Product.
Neither PIMCO nor any other party involved in, or related to,
making or compiling the Index has any obligation to continue to
provide the Index to AGL with respect to the Product. Neither PIMCO
nor any other party involved in, or related to, making or compiling
the Index makes any representation regarding the Index, Index
information, performance, annuities generally or the Product
particularly.
PIMCO disclaims all warranties, express or implied, including
all warranties of merchantability or fitness for a particular
purpose or use. PIMCO shall have no responsibility or liability
whatsoever with respect to the Product. The Licensed PIMCO Index is
comprised of a number of constituents, some of which are owned by
entities other than PIMCO. The Licensed PIMCO Indices rely on a
variety of publically available data and information and licensable
equity and fixed income sub-indices. All disclaimers referenced in
the Agreement relative to PIMCO also apply separately to those
entities that are owners of the constituents of the Licensed PIMCO
Indices. The constituents of the Licensed PIMCO Indices include:
MSCI Inc., FTSE International Limited, FTSE TMX Global, Debt
Capital Markets, Inc., Frank Russell Company and certain ETFs.
Index annuities are issued by American General Life Insurance
Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019.
Contract Numbers for the Power Series of Index Annuities: AG-800
(12/12) and AG-801 (12/12). Rider Form Numbers: AGE-8000 (12/12),
AGE-8001 (12/12), AGE-8002 (9/13), AGE-8003 (12/12), AGE-8005
(12/12), AGE-8007 (12/12), AGE-8008 (12/12), AGE-8009 (12/12),
AGE-8024 (9/13), AGE-8028 (4/14), AGE-8034 (4/15) and AGE-8053
(8/17).AGL is a member of the American International Group, Inc.
(AIG) family of financial services companies. The underwriting
risks, financial and contractual obligations and support functions
associated with the annuities issued by AGL are its responsibility.
AGL does not solicit business in the state of New York. Annuities
and riders may vary by state and are not available in all states.
AIG and its member companies are not affiliated with PIMCO.
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
American International Group, Inc. (AIG) is a leading global
insurance organization. Founded in 1919, today AIG member companies
provide a wide range of property casualty insurance, life
insurance, retirement products, and other financial services to
customers in more than 80 countries and jurisdictions. These
diverse offerings include products and services that help
businesses and individuals protect their assets, manage risks and
provide for retirement security. AIG’s core businesses include
Commercial Insurance and Consumer Insurance, as well as Other
Operations. Commercial Insurance comprises two modules – Liability
and Financial Lines, and Property and Special Risks. Consumer
Insurance comprises of four modules – Individual Retirement, Group
Retirement, Life Insurance and Personal Insurance. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock
Exchange.
Additional information about AIG can be found at www.aig.com and
www.aig.com/strategyupdate | YouTube: www.youtube.com/aig |
Twitter: @AIGinsurance | LinkedIn:
http://www.linkedin.com/company/aig. These references with
additional information about AIG have been provided as a
convenience, and the information contained on such websites is not
incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
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version on businesswire.com: http://www.businesswire.com/news/home/20171108005910/en/
AIGKenny Juarez, 212-458-8352kenny.juarez@aig.comorLinda
Malamut, 310-772-6533linda.malamut@aig.com
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