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Allianz Life offers two new index allocations

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Allianz Life Insurance Company of North America (Allianz Life) announced that financial professionals who utilize the Allianz Preferred Platform will have access to two enhanced index allocations, offering additional choices for retirement accumulations.

Fixed index annuities offered through Allianz’s Preferred Platform — a sales platform available to field marketing organizations and financial professionals who meet specific criteria — will now be availed of the Barclays U.S. Dynamic Balance Index as well as the Russell 2000 Index.

The newly created Barclays U.S. Dynamic Balance Index is tailored to customers responding to the low-cap environment by offering an uncapped strategy with an annual spread. The index seeks to provide balance by shifting weight daily between the S&P 500 Index and the Barclays Capital U.S. Aggregate Bond Index based on realized market volatility. In order to capture interest yearly, an annual point-to-point spread crediting method and annual reset is used. The index is exclusive to Allianz fixed index annuities.

The other allocation, the Russell 2000 Index, measures the performance of small-cap companies in order to meet the needs of customers striving to diversify their accumulation strategy. Crediting methods include a monthly sum, which includes a monthly cap, as well as an annual point-to-point with an annual cap. The index is available on Allianz Preferred fixed indexed annuities.

Franklin Templeton Investments recently announced the introduction of four funds within the company’s retirement target fund line-up: Franklin LifeSmart 2020, 2030, 2040, and 2050 Retirement Target funds.

The funds are designed to complement their current 2015, 2025, 2035 and 2045 Retirement Target funds.

Each fund’s allocation is tailored for investors who are looking to retire around the target year indicated in the fund’s title. Assets are mostly invested in Franklin and Templeton mutual funds.

Generally, each fund’s asset allocation shifts from being less conservative (investing mostly in equity funds when the target date is furthest away) to becoming more conservative (shifting investments from equities to fixed income investments) as the target date approaches.

The funds are designed for investors who seek simplicity of an asset allocation coupled with a risk management approach.


In other annuity news

The decision by Apollo Global Management LLC (Apollo) to comply with heightened capital standards and enhanced supervision by the New York Department of Financial Services (DFS) due to the DFS’ approval of Athene Holding Ltd’s (an Apollo affiliate) purchase of Aviva USA, the parent company of Aviva NY, is a credit positive for policyholders and creditors, according to Moody’s Investor Service.

The agreement with the DFS neutralizes what traditionally would be a credit negative because alternative asset managers like Apollo have higher risk appetites.


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