Available on the RetireOne® platform, BESGUVCX is the first ESG option to be offered in a fixed index annuity
San Francisco, CA – February 25, 2021 – Midland National Life Insurance Company (Midland National) announced the addition of the BlackRock ESG US 5% Index ER (ticker: BESGUVCX) to help customers take advantage of the burgeoning growth in sustainable financial products. IndexMax ADV, exclusively available on the RetireOne® platform, offers three index options in the dual crediting strategy for accumulation growth potential.
“Designing annuities for fiduciaries demands that we deliver great client outcomes while seizing the growing opportunities in products that are focused on environmental, social, and governance – or ESG – options,” said Jill Esser, Vice President, Annuity Product Development at Sammons Financial Group. “ESG options are attractive to some customers wanting to address the long-term viability of companies facing the global climate crisis and critical social change. We anticipate that this index will enjoy strong customer demand due to both its focus and performance.”
BlackRock Index Services developed the index as part of its commitment to increasing access to sustainable investing through indexes that are linked to fixed index annuity (FIA) products.
The index seeks less exposure to environmental risk, and more exposure to sophisticated companies with high-level risk controls which attract and retain skilled workers and customers. As examples, these securities may increase the fund’s proportion of companies focused on lowering carbon emissions, emphasizing workforce diversity, and strengthening data privacy and security.
“Companies with strong ESG policies are in an ideal position to perform over the long run, so it is imperative to include ESG principles in portfolio design,” said David Stone, Founder and CEO of RetireOne. “In this low-rate environment, clients of RIAs are seeking the kinds of protections afforded by fixed index annuities. As demand for socially responsible financial products increases – 42% in the last two years according to United States Forum for Sustainable and Responsible Investment1 – an ESG index can provide a valuable option to clients.”
While ESG strategies currently comprise roughly 33% of U.S. assets under professional management1, the Deloitte Center for Financial Services (DCFS) estimates that demand will drive ESG-mandates assets to account for half of all professionally managed investments in the U.S. by 2025.
“We think the trend toward greater company disclosure and clearer understanding of how ESG risks affect investment returns will spur increased adoption of sustainable products,” said Anne Ackerley, Managing Director and Head of BlackRock’s Retirement Group. “The BlackRock ESG US 5% Index ER exemplifies our commitment to increase access to sustainability solutions through index innovation.”
About IndexMax ADV
The IndexMax ADVSM is a fixed index annuity (FIA) product that layers in potential annual performance credits with additional 5- or 7-year term participation credits to provide rates guaranteed for the term. Designed for fee-based advisors, the FIA offers two additional indexes for its layered crediting strategy: the Fidelity Multifactor Yield Index 5% ERSM (ticker: FIDMFYDN), and the S&P 500® Low Volatility Daily Risk Control 5% Index ERSM (ticker: SPLV5UE). Contact RetireOne to find out how this product could benefit a client’s overall portfolio.
Serving over 900 RIAs and fee-based advisors since 2011, Aria Retirement Solutions’ RetireOne® is the leading, independent platform for fee-based insurance solutions. With offerings from multiple “A” rated companies, RIAs may access this fiduciary marketplace at no additional cost to them or their clients. Currently servicing over $1 billion of retirement savings and income investments, RetireOne continues to grow in its mission to provide advisors and their clients’ valuable retirement solutions that are simple to use, easy to understand, and delivered with outstanding service. Learn more at RetireOne.com and follow us on Twitter @RetireOne.
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 Sammons® Financial Group, Inc. on Aug. 19, 2020.
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 Group, a subsidiary of Sammons Enterprises, Inc. With its annuity division in West Des Moines, Iowa, and its life insurance 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, click here.
Midland National, a Sammons Financial Group company
1 Source: Latest biennial report from the United States Forum for Sustainable and Responsible Investment (US SIF).
The IndexMax ADVSM is issued on base contract form AS203A/ICC20-AS203A, or appropriate state variations including all applicable endorsements and riders. This product, its features and riders may not be available in all states.
Fixed index annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.
Withdrawals taken prior to age 59½ may be subject to IRS penalties.
The BlackRock ESG US 5% Index ER is a product of BlackRock Index Services, LLC and has been licensed for use by Midland National® Life Insurance Company. BlackRock®, BlackRock ESG US 5% Index ER, and the corresponding logos are registered and unregistered trademarks of BlackRock. The annuity product is not sponsored, endorsed, sold or promoted by BlackRock Index Services, LLC, BlackRock, Inc., or any of its affiliates, or any of their respective third-party licensors (including the Index calculation agent, as applicable) (collectively, “BlackRock”). BlackRock has no obligation or liability in connection with the administration or marketing of the annuity product. BlackRock makes no representation or warranty, express or implied, to the owners of the annuity product or any member of the public regarding the advisability of investing the annuity product or the ability of the BlackRock ESG US 5% Index ER to track general market performance. BlackRock does not guarantee the adequacy, accuracy, timeliness, and/or completeness of the Index or any data or communication related thereto nor does it have any liability for any errors, omissions or interruptions of the BlackRock ESG US 5% Index ER.
The BlackRock ESG US 5% Index ER (the “Index”) objective is to offer exposure to the iShares ESG Aware MSCI USA ETF subject to a 5% Target Volatility. The index manages to the Target Volatility by incorporating Fixed Income US Treasury iShares® ETFs and a Cash Constituent.
The Index tracks the return of the weighted ETFs and any Cash Constituent, above the sum of the Return on the Interest Rate and the Index Fee. It is important to note your premium is not invested in the Index but in the insurance company’s general account, which may include investments that do not follow the environmental, social, and governance (ESG) practices of the BlackRock ESG US 5% Index ER.