Voya Financial, a provider of retirement products and services to institutional clients, has announced a new index crediting strategy to diversify its suite of fixed index annuity product lines.
The approach, the Voya Point-to-Point Volatility Control Strategy, features Deutsche Bank’s proprietary CROCI (cash return on capital invested) US 5% Volatility Control Index. This provides a dynamic investment option that aims to reduce volatility by allocating between select U.S. stocks and cash.
More than nine in 10 (91%) working Americans think it’s important to
have investment options that offer exposure to the equity markets when
planning their retirement portfolio, according to findings from the Voya
Retire Ready Index.
Voya says that, given the historically low interest rate environment and low cap rates on many fixed index annuities, investors are seeing the value of volatility control strategies.
Besides offering an alternative to other popular benchmark strategies that are capped, the Voya Point-to-Point Volatility Control Strategy provides upside potential minus a spread rate. A lower spread rate helps customers maximize their investment, while their principal remains protected even with market downturns. Customers can lock in potential index credit gains on an annual basis to their fixed index annuity contract—giving them the benefits of compounding interest.