Mean variance optimisation has become the dominant allocation process for risk control indices used in annuities.

Amid the explosion in popularity of indexed annuity products in the US market, multi-asset index underlyings have surpassed equity/bond indices as the most dominant choice for portfolios, according to data collected from The Index Standard. However, from a performance perspective, the S&P500 PR Index at 26.9% delivered the best one-year annualised returns in the annuities space with the MSCI EAFE PR Index coming second at 8.8%. Equity risk control indices took the third place with 6.6% annu

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