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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:

  • Equity
  • 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:

Access the S&P MARC 5% (er) Webinar Recording

Post by Travis Pence
August 5, 2021