We are working with life insurance carriers that have recently added the S&P MARC 5% (er) to their line of indexed products.
Created in 2017, the S&P Multi-Asset Risk Control 5% Excess Return Index (S&P MARC 5% ER) was (and is) intended to create more stable index performance through diversification, an excess return methodology, and volatility management. This index seeks to provide multi-asset diversification within a simple risk weighting framework, tracking three underlying component indices that represent:
- Fixed Income
- And Commodities
In short, the S&P MARC 5% (er) is designed to mitigate the effects of a volatile market, which can be useful for insurance companies that sell indexed products. This is because a low volatility index may lead to:
- More participation
- A lower cost to hedge
- More consistent returns
- Higher crediting rates
We hosted a webinar in which we discussed how the S&P MARC 5% (er) performed against other similar indexes. We also presented our proprietary index performance analysis, which details how the S&P MARC 5% (er) may perform over a 20-year period and the return it might yield in an indexed product.
But don’t worry! You can still access a recording of this webinar if you want to see a summary of our analysis. It will only take about 15-minutes of your time: