BNPP Momentum 5: An Index Designed for Steady, Consistent Return Potential
With an annual average return up to 7.36%* on a two-year participation rate strategy with fee, the performance potential of the BNPP Momentum 5 Index**—proprietary to Ameritas Life Insurance Corp. and Legacy Marketing Group® on FlexMark Select® fixed index annuities—is clear. But what makes the BNPP Momentum 5 an index worth noticing is the trifecta of core principles that power its investment philosophy:
- Diversification: By providing exposure to asset classes that range from developed and emerging equity/bond markets, to energy, U.S. real estate, and gold, the Index seeks to provide stable return potential.
- Daily Dynamic Allocation: To adapt to changing market conditions, the Index, unlike some others, is rebalanced on a daily basis by: (1) selecting up to eight components, out of a universe of 14, with the best recent risk-adjusted positive performance and (2) weighting exposure according to risk, with the highest weight on less volatile components.
- Daily Risk Control: Here, also on a daily basis, the Index targets an annualized realized volatility of 5% with a goal of reducing volatility during unstable market periods.
By implementing these three core principles, the BNPP Momentum 5 Index has the potential to provide steady, consistent returns. And, even in years when the Index value has decreased, the FlexMark Select 0% floor protects your clients’ money from market-related loss—allowing their accumulation value to build momentum!
To learn more about the power of the Index, including hypothetical past performance data, visit https://momentum5index.bnpparibas.com.
Don’t take our word for the Index’s performance potential. Run an illustration today, and see it with your own eyes!
In approved states, FlexMark Select Index Annuities (Form 2705) and riders are issued by Ameritas Life Insurance Corp. (Ameritas) located at 5900 O Street, Lincoln, NE 68510. Products are designed in conjunction with Ameritas and exclusively marketed by Legacy Marketing Group. Ameritas and Legacy Marketing Group are separate, independent entities. FlexMark Select Index Annuities are single premium deferred annuities that offer a fixed interest option and index interest options. The index options are not securities. Keep in mind, your clients are not participating in the market or investing in any stock or bond. Policies, index strategies, and riders may vary and may not be available in all states. Optional features and riders may have limitations, restrictions, and additional charges. Product guarantees are based on the claims-paying ability of Ameritas Life Insurance Corp. Refer to brochures for additional details. Unless otherwise specified, any individual or entity referenced herein is not an affiliate of Ameritas or any of its affiliates. FlexMark Select is a registered service mark of Legacy Marketing Group.
The BNPP Momentum 5 Index has limited historical information. The BNPP Momentum 5 Index is a new index strategy, launched on January 27, 2017. For more information about the BNPP Momentum 5 Index, visit https://momentum5index.bnpparibas.com.
The BNP Paribas Momentum Multi Asset 5 Index (the “BNPP Momentum 5 Index”) is the exclusive property of BNP Paribas or one of its affiliates (BNP Paribas and its affiliates are hereinafter called “BNPP”) and is determined, composed and calculated by BNPP. “BNP”, “BNPP”, “BNP Paribas”, “BNP Paribas Momentum Multi Asset 5 Index”, “BNP Paribas Momentum 5 Index”, and “BNPP Momentum 5 Index” (collectively, the “BNPP Marks”) are trademarks or service marks of BNPP and are licensed by Ameritas Life Insurance Corp. (the “Company”) for use in a fixed indexed annuity offered by the Company. The fixed indexed annuity is not, in whole or in part, sponsored, structured, priced, endorsed, offered, sold, issued or promoted by BNPP or any of its affiliates, or any third party licensor of information to BNPP. BNPP’s only relationship to the Company is the licensing of the BNPP Momentum 5 Index and BNPP Marks for certain purposes as well as acting as a hedge provider to the Company with respect to the fixed indexed annuity. BNPP shall not have any liability with respect to a fixed indexed annuity in which an interest crediting option is based on the BNPP Momentum 5 Index, and is not liable for any loss relating to the fixed indexed annuity, whether arising directly or indirectly from the use of the BNPP Momentum 5 Index, its methodology, any BNPP Mark or otherwise.
No purchaser, seller or holder of the fixed indexed annuity, or any other person or entity, should use or refer to any BNPP Mark or other BNPP trade name to sponsor, endorse, market or promote the fixed indexed annuity without first contacting BNPP. Under no circumstances may any person or entity claim any affiliation with BNPP without the prior written permission of BNPP.
In calculating the level of the BNPP Momentum 5 Index, BNPP deducts an annual fee of 0.50% per annum, calculated on a daily basis which reduces the performance of the BNPP Momentum 5 Index in the same way as a cost. In addition, the BNPP Momentum 5 Index methodology embeds certain costs which cover among other things, rebalancing and replication costs. Such costs (if any) may vary over time with market conditions. These costs reduce the potential positive change in the BNPP Momentum 5 Index and thus the amount of interest that will be credited to the fixed indexed annuity that includes the BNPP Momentum 5 Index.
The volatility control applied by BNPP may reduce the potential positive or negative change in the BNPP Momentum 5 Index and thus the amount of interest that will be credited to the fixed indexed annuity that includes the BNPP Momentum 5 Index.
| * | Hypothetical example assumes $200,000 premium allocated in the FlexMark Select no-bonus product BNPP Momentum 5 Index Two-Year Point-to-Point With Participation Rate Fee Option over a 10-year period with no reallocations, no additional premium payments, and no withdrawals, and 120% participation rate that did not change throughout the entire period shown. Rate effective October 5, 2019, and subject to change. Hypothetical example is net of the 2% index strategy fee, which is deducted at the beginning of each two-year term. Hypothetical example is not reflective of actual annuity performance. Past performance, whether actual or hypothetical, does not guarantee future results. Actual results may vary. Fee and multi-year strategies are not available in all states. |
| ** | Also known as the BNP Paribas Momentum Multi-Asset 5 Index. |
| LMG4177v1019 | FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS. |
Interest Crediting in the Upside Down?
Stranger Things Have Happened.
Is it possible to earn a 10% return when the S&P 500® drops by 10%? Yes! For clients anticipating a bear market, look no further than the Inversion Strategy:
- Credits interest when the S&P 500 declines.
- Allows clients to capitalize on a down market.
- Offers an annual point-to-point cap as high as 10.30%.*
- Is a great strategy for clients who want to hedge their bets in an uncertain market.
The Inversion Strategy is one of nine diverse interest crediting options available on ClassicMark® and LibertyMark® Series pure accumulation fixed indexed annuities from Americo Financial Life and Annuity Insurance Company.
Whether clients choose to allocate to the Inversion Strategy now, later, or not at all, they’ll appreciate having this option in their back pocket ... just in case. Where else can they earn up to 10.30%* when the market turns upside down?!
Regardless of how the S&P 500 performs, clients are guaranteed to receive 1.60% on 100% of their premium, compounded annually, on contracts issued in 2019.**
Click here to run an illustration, or call the Legacy Sales Team at 800-395-1053, Ext. 4002, for more information.
ClassicMark 10, 10 LT (Contract Series 411/4190/4204); ClassicMark 10 Plus, 10 LT Plus (Contract Series 411/4179/4190/4204); LibertyMark 7, 10, 10 LT, SE 7, SE 10, SE 10 LT (Contract Series 411/4196/4205); LibertyMark 7 Plus, SE 7 Plus (Contract Series 411/4191/4196/4205); LibertyMark 10 Plus, 10 LT Plus, SE 10 Plus, SE 10 LT Plus (Contract Series 411/4179/4196/4205). Products are single premium deferred fixed indexed annuities underwritten by Americo Financial Life and Annuity Insurance Company (Americo), Kansas City, MO, and may vary in accordance with state laws. Products are designed and exclusively marketed by Legacy Marketing Group®, an independent, authorized agency of Americo. Some products and benefits may not be available in all states. Certain restrictions and variations apply. Consult contract and riders for all limitations and exclusions. On LibertyMark, the Liberty Optimizer administrative fee of 1.00–1.75% (depending on the product version selected) will be deducted from the Accumulation Value at the end of each contract year, including the first. ClassicMark and LibertyMark are registered service marks of Legacy Marketing Group.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and has been licensed for use by Americo Financial Life and Annuity Insurance Company (“Americo”). Standard & Poor’s®, S&P 500®, and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Americo. Americo’s Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
| * | Rate on LibertyMark SE 10 and SE 10 LT effective October 29, 2019, and subject to change. |
| ** | Available upon death, surrender, or annuitization, less any withdrawals, surrender charges, and applicable premium tax. |
| LMG4177v1019 18-625-11 (10/19) |
FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS. |
The Formula Behind One of the Strongest Guarantees in the Industry
 |
In today’s uncertain market, my clients really appreciate the protection of Americo’s industry-leading 1.60% on 100% minimum guarantee.* How is the minimum guarantee determined, and can it change anytime soon? |
||||||||||||||||||||||||||||||||||||||||||||
 |
Great question! On Legacy’s exclusive lineup of fixed indexed annuities from Americo Financial Life and Annuity Insurance Company, clients are guaranteed to receive a Minimum Guaranteed Value Interest Rate (MGVIR) between 1% and 3% on the entirety of their premium, compounded annually. Americo FIAs use a rate calculated for each calendar year based on a formula tied to the 5-Year Constant Maturity Treasury Rate. The Minimum Guaranteed Value Interest Rate will never be less than 1% or greater than 3%, and clients will always receive the greater of the Accumulation Value or the Guaranteed Minimum Value. On products with an administrative fee, the fee is not deducted from the Guaranteed Minimum Value. The Americo MGVIR Formula: 5-Year Constant Maturity Rate on Dec. 1 (rounded to nearest 1/20th) - 1.25% = MGVIR We can’t predict what will happen with the 5-Year Constant Maturity Treasury Rate on December 1. As of October 1, it was 1.51%, so if the minimum guarantee were determined today for contracts issued next year, it would be 1% on 100% of premium (10.46% after 10 years in a worst-case scenario!). No matter what happens, Americo FIAs offer one of the strongest minimum guarantees in the industry—with powerful upside potential beyond that! With the current 1.60% on 100% of premium rate, it would take a standard annuity 30 years to match Americo’s 10-year Guaranteed Minimum Value!
For more information, please contact the Legacy Sales Team at 800-395-1053, Ext. 4002. Have a question for the Sales Team that you’d like considered for the next issue of On the Mark? Ask us at onthemark@legacynet.com! |
||||||||||||||||||||||||||||||||||||||||||||
Products are single premium fixed deferred indexed annuities underwritten by Americo Financial Life and Annuity Insurance Company (Americo), Kansas City, MO, and may vary in accordance with state laws. Products are designed and exclusively marketed by Legacy Marketing Group®, an independent, authorized agency of Americo. Some products and benefits may not be available in all states. Certain restrictions and variations apply. Consult contract and riders for all limitations and exclusions.
| * | Available upon death, surrender, or annuitization, less any withdrawals, surrender charges, and applicable premium tax. Rate for contracts issued in 2019. |
| ** | Examples assume $100,000 premium, no additional premium payments, no withdrawals, and no interest earnings over a 10-year period. Americo values shown use LibertyMark 10 or LibertyMark SE 10 surrender charge percentages and are based on 100% of premium guaranteed at 1.60%,* less any withdrawals, surrender charges, and applicable premium tax. Standard annuity values are based on 87.50% of premium guaranteed at 1% under the Standard Non-Forfeiture Minimum Guarantee. |
| LMG4177v1019 18-625-11 (10/19) |
FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS. |
Suitability Help Desk at Your Service
You wouldn’t go to a client meeting without looking your best, so why submit your client’s application without first having it scrubbed for suitability? With Legacy’s Suitability Help Desk, you don’t have to! Contact them before solicitation for answers to suitability questions, customer service needs, and to get your applications scrubbed. Just call 800-395-1053, Ext., 5819, or e-mail SuitabilityHelpDesk@legacynet.com.
Save Time, Speed Business—Call Legacy’s Dedicated Americo Number
For speedier answers to your questions on the status of Americo Financial Life and Annuity Insurance Company new business, be sure to call Legacy’s dedicated phone number for Americo business: 800-786-4558 (dial 1 for the Agent Call Center). Take time now to add this number to your list of contacts! To reach Annuity PHS, your Americo clients can use the 800-786-4558 number and dial 2.
Five Facts About Elaine Harvey, Senior Editor at Legacy
- This month marks Elaine’s 19-year anniversary at Legacy! Among her many responsibilities as Senior Editor, Elaine has been Chief Editor of the company newsletter for the entirety of her tenure. The publication that started as a faxed newsletter called Communiqué has progressed into this On the Mark e-newsletter, with a few variations in between. Elaine appreciates the newsletter journey and is proud of how it has evolved—as she should be!
- While studying journalism in college, Elaine became intrigued with the law classes that her friends were enrolled in—so much so that she decided to take a few herself. Wouldn’t you know it, she took the LSAT, was accepted at Golden Gate University Law School, and studied communications law, hoping to defend reporters.
- From lawyer in her early career, to copywriter and editor for a legal publishing company, Elaine had her eyes on Legacy for some time. She lived in Petaluma and would see the Legacy building as she drove by on a regular basis. Elaine watched LegacyNet® for job openings until a posting opened up that matched her skillset. The rest is history! Elaine is a true gem here at Legacy and has helped to build the strong, valuable voice that we have in the industry today.
- With almost two decades of writing and editing for Legacy, Elaine has been integral in nearly two dozen product launches and enhancements. When asked which launch has been the most memorable to date, she said FlexMark Select®! The fun that the Communications Team had with the launch included a gift box and exciting teasers. She recalls the day prior to the launch, feeling the excitement as it filled the building and the product “came to life.”
- Speaking to what is still in store for Legacy, and the role Elaine plays, she is looking forward to seeing the initiatives in line take shape. Elaine enjoys the teamwork and process of marketing new products. She appreciates getting to “dig into” the specs, and the challenge of positioning and creating a feature hierarchy. Elaine’s creativity, experience, and expertise make way for a winning strategy every time.
Taking a Turkey Timeout
Legacy will be closed Wednesday, November 6, from noon to 1 p.m., Pacific time, for our annual employee Thanksgiving feast. If you have immediate needs during this time, be sure to check LegacyNet® for all your business resources.
