Strategy Overview
A method used to calculate interest rates for contracts
Strategy
The profit in goods or money that is made on invested capital.
Interest Rate
How will the segment/strategy change be confirmed?
A confirmation letter will be sent to the AOR confirming the segment/strategy change request has been processed.
Captures approximately 80% of available market capitalization.
S&P 500 (SPX)
There is a process of operations when applying adjustments to the index change value.
CAP RATE FIRST -> SPREAD RATE SECOND -> PARTICIPATION RATE THIRD
This rate can change each Contract Year.
Fixed Strategies
The length of time money allocated into a strategy must remain in the strategy before it may be reallocated.
Term
Who can request a Strategy Change.
Owners/Producers/Admin,
Legally Authorized to Act as Owner
Stock Market based on market capitalization, reflecting companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.
NASDAQ 100 (NDX)
Strategy Illustration CANNOT be run on what two products
Amplify or Accumax
This strategy is linked to the movement of an external market index - but the client's funds are not invested in the market.
Indexed Strategies
The change in value is used to determine the amount of interest credits.
One Year Point to Point
When can a strategy change be made?
28 days prior to contract anniversary
Eight underlying components including equity futures, bond futures and commodity indices provide exposure to a range of asset classes across three geographic regions.
BNP Paribas Multi Asset Diversified 5 (BNPIMAD5)
This type of visual aid can be requested on McCamish contracts for legacy products.
Strategy Illustration
Uses a Participation Rate in the calculation of Interest Earnings
Index Earning Strategies (IES)
Analyzes the performance of the S&P 500 on a monthly basis.
One Year Monthly Cap
What source systems are used to make a strategy changes.
ALIP-Wizard
AS400
Selects approximately 250 equity stocks from the 1,000 largest US companies using a scoring system that evaluations financial health and management strength as well as market sentiment, economic and geopolitical risks. It then weights each company, assigning the largest weight to those with the highest scores.
Al Powered US Equity Index (AIPEX)
If a caller asks about the performance of the same strategy but different index where would you look.
The Rates Spreadsheet
What strategy product do we NOT take calls for?
Amplify
The charge is calculated by multiplying the Strategy Value of the associated Strategy and an Annual Strategy Charge Rate on each contract anniversary. (Reference contract language)
Strategy Charge
How can the request be made?
Available for contracts issued prior to February 3, 2020 only.
Morningstar® Dividend Yield Focus Target Volatility 5 (MSDIHDVA)
(ENDING INDEX VALUE - BEGINNING INDEX VALUE) ÷ BEGINNING INDEX VALUE = INDEX CHANGE %
Point to Point Calculation