Hedge funds, private investment vehicles for high net worth investors, have proven effective in preserving capital during equity market downturns
The Accumulation Benefit offers investors protection against market downturns
during the first 10 years they own the contract.
A key benefit of the structure is that it provides protection against severe equity market downturns
," said Marshall Greenbaum, Director with SG CIB, adding "the structure can be used for all variable annuity benefits including guaranteed minimum income and withdrawal benefits.
After the contract has been in effect for 10 years, the rider helps protect the client from market downturns
, guaranteeing they will have at least 105 percent of their first-year premium, adjusted for withdrawals.
Mid-cap securities may be subject to special risks associated with narrower product lines and limited financial resources than compared to their large-cap counterparts and, as a result, mid-cap securities may decline significantly in market downturns
The plaintiff wanted Alliance to pay for market downturns
that were entirely beyond its control," said Managing Principal Mark Egland, Analysis Group's case leader in the matter.
PowerPortfolio(TM) gives large customers the ability to choose a combination of fixed and market-based prices to lower costs, reduce market exposure and capitalize on market downturns
to lock in portions of their load.