How to build a smart beta index
This article is targeted towards actuaries and risk managers working at insurance companies. This article must not be construed as investment advice or product recommendation. The recipe for building smart beta index is quite straightforward. Here it is: Step 1:...
What makes a smart beta index great?
This article is targeted towards actuaries and risk managers working at insurance companies. This article must not be construed by consumers as investment advice or product recommendation. Smart Beta As the name suggests, the beta needs to be smart (not...
Inflation Protected Annuities
Summary In this analysis, we attempt to create an inflation-protected annuity by adding an increasing annuity to a level annuity. Increasing annuity’s annual benefit increases as {k, 2k, 3k, …} and so on. Final annual benefit amounts are {b+k, b+2k,...
Fixed Indexed Annuity : Insurers rely on asset ret...
Summary Our base case scenario is that of high nominal rate (5 YR Corporate AA yield 4%), average asset income (5.75%) and single digit equity returns (7-9%). Our analysis suggests excellent Fixed Annuity and Fixed Indexed Annuity returns for both...