West Des Moines, Iowa, Feb. 26, 2020
The Fidelity Multifactor Yield Index 5% ERSM leverages Fidelity’s established legacy of asset management capabilities. The index will be added into Midland National’s portfolio of new fixed indexed annuity, or FIA, products.
A factor is a characteristic of a security that helps explain its risk and return behaviors. This index performs by combining key factors in such a way to help lower overall risk while providing the potential to consistently outperform the broader market.
The Fidelity Multifactor Yield Index 5% ERSM includes a blend of six equity factor indices. Each factor and weighting was chosen based on its potential ability to enhance returns, manage risk, and target specific outcomes. The factors within the new index include:
“These factor indices were weighted with a tilt toward dividend yield,” said Bryce Biklen, chief distribution officer for Midland National’s annuity division. “This strategic design aims to optimize growth potential, which is a key goal for many of our clients.”
In addition to the combination of investment factors, a 5% volatility control target aims to maintain consistency through various market conditions. To manage volatility control, a fixed-income overlay is applied and allocates between 10-year Treasuries and cash to account for potential changes in interest rates. The overlay then adjusts allocation of the equity index on a daily basis to meet the 5% volatility target.
“We’re committed to helping our clients solve challenges and continuously look for opportunities to leverage our asset management capabilities to provide them with solutions,” said Matt Aurelia, senior vice president, Fidelity Institutional Asset Management.
The new Fidelity Multifactor Yield Index 5% ERSM is currently available through Midland National® Life Insurance Company and Sammons Institutional GroupSM, Inc.
“Our agents—and more importantly their clients—expect innovation backed by expertise in meeting today’s financial planning challenges,” said Biklen. “This new index is a sound tool to meet changing client needs.”
About Midland National Life Insurance Company
For more than 110 years, Midland National® Life Insurance Company (Midland National) has been an industry leader, crediting the company’s strength to its commitment to stability, innovation and dedicated customer service. Midland National is accredited by the Better Business Bureau, and has earned an A+ (Superior) rating from A.M. Best, a large third-party independent reporting and rating company that rates an insurance company on the basis of the company's financial strength, operating performance and ability to meet its ongoing obligations to policyowners. This rating is the second highest out of 15 categories and was affirmed by A.M. Best for Midland National as part of Sammons FinancialSM on Aug. 7, 2019.
Founded as Dakota Mutual Life Insurance Company in 1906, Midland National has protected families and preserved legacies for generations. Midland National is one of the leading insurance companies in the United States. Midland National is a member of Sammons® Financial, a subsidiary of Sammons Enterprises, Inc. With its Annuity Division in West Des Moines, Iowa, and its Life Operations in Sioux Falls, South Dakota, Midland National operates in 49 states and the District of Columbia through its 12,000 licensed sales professionals. For more information, visit Midland National.
About Sammons Financial
The companies of Sammons FinancialSM are here to help families and businesses protect their future, so they can enjoy life’s moments today. A subsidiary of Sammons Enterprises, Inc., Sammons Financial is a group of privately-owned financial companies, including several of the most enduring and stable companies in our industry, and is comprised of three member companies: Midland National® Life Insurance Company, which includes Sammons® Corporate Markets; North American Company for Life and Health Insurance®; and Sammons Institutional GroupSM, which consists of Midland Retirement DistributorsSM and Sammons Retirement Solutions®. Together, the companies offer some of today’s most sought-after life insurance, annuity, and retirement planning products. Sammons Financial: With You for Every Moment®.
The Fidelity Multifactor Yield Index 5% ER (Index) is the property of Fidelity Product Service LLC (FPS) a Fidelity Investments company. Neither the Index nor any information related to the Index presented in this document is investment advice nor a recommendation to buy or sell any security, strategy or investment product. FPS is not an investment adviser, broker-dealer, or issuer of securities and it does not have any fiduciary responsibility in respect of the Index, licensee(s) of the Index, or any product that may utilize the Index.
The Index has been licensed for use by Sammons Financial Group on behalf of its insurance subsidiaries, Midland National or North American. Fidelity, nor any of its affiliates, or any of their respective third party licensors (including the Index calculation agent, as applicable) endorses, sells, or promotes any product sold by Midland National and North American. Fidelity has no obligation or liability in connection with the administration or marketing of any Midland National and North American product. Fidelity makes no representation or warranty, express or implied, to the owners of any Midland National and North American product or any member of the public regarding the advisability of investing in any Midland National or North American product or the ability of the Index to track general market performance.
FPS disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. FPS does not guarantee the adequacy, accuracy, completeness, timeliness, and/or performance of any Index or any data related thereto and shall have no liability in connection with any Index or Index calculation, errors, omissions or interruptions of any Fidelity Index or any data included therein. The Indices are unmanaged and are not available for direct investment. FPS uses an independent calculation agent to calculate each Index.
The Fidelity Multifactor Yield Index 5% ER is a service mark of FMR LLC.
Sammons Financial is the marketing name of Sammons® Financial Group, Inc. and its member companies. Annuities are issued by, and product guarantees are solely the responsibility of, the issuing life insurance company.