S&P MARC 5% Excess Return Index (S&P MARC 5% Index)
The S&P MARC 5% Index is a derivative index of the S&P 500 ® designed to manage market volatility. The S&P MARC 5% (Multi-Asset Risk Control) Index seeks to provide multi-asset diversification within a simple risk weighting framework, tracking three underlying component indices that represent equities, commodities, and fixed income. For purposes of the S&P MARC 5% Index, an excess return version of the S&P 500 ® is calculated from the S&P 500 ® Total Return Index and is used as the underlying equities component index. The weighted strategy is rebalanced daily to maintain a target volatility of 5%. In low-volatility environments, the S&P MARC 5% Index risk control mechanism increases market exposure to riskier assets by increasing the allocation to the index (up to a leveraged position of 150%).
S&P MARC 5% Low Volatility Strategy S&P MARC 5% Index One Year Point-to-Point Uncapped The crediting rate in this uncapped strategy is determined based on the annual change in the S&P MARC 5% and multiplied by a declared participation rate. The S&P MARC 5% is a derivative of the more well-known S&P 500 ® that is rebalanced daily to manage market volatility.
Hypothetical Examples 1 • 120% participation rate × 5% annual growth rate = 6% crediting rate • any participation rate × -10% annual growth rate = 0% crediting rate (with 0% floor will never fall below 0%) 2
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ASIA PLUS 10 / AMERICAN NATIONAL
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