Morningstar’s ‘Secret Sauce’

Speaking at the 2011 Morningstar/Ibbotson Conference in Orlando, Roger Ibbotson (above) described low-liquidity as a largely unrecognized source of alpha in stocks and mutual funds.

‘SIMON’ Makes Indexed Annuities Simpler

Originally a platform for distributing structured notes to broker-dealers, SIMON is adding index-linked annuities to its product suite. Prudential is both an investor and, as of today, a product provider.

Annuities and the Charles Schwab Deal

Most of the annuities now on the Charles Schwab and TD Ameritrade platforms are offered by mutual or foreign-owned life insurers. Lincoln Financial is the sole exception.
Featured

In 2010, VA Industry Thrived and Consolidated

Of $136.6 billion in total sales, $21.5 billion represented new cash flow, up from $17 billion in 2009. But the net cash flow was the third lowest in 12 years, after 2005’s net flow of $20.4 billion.
News

New Barclays Capital index enables policy arbitrage

“The spread between European and US short-term rates... presents the possibility of extracting value,” said Jose Mazoy, Director, Index Portfolio and Risk Solutions at Barclays Capital.

No sex please, we’re British

A high court in Britain has apparently barred U.K. insurers from using gender as a factor in calculating insurance rates, including payout rates for retail income annuities. One expert observer predicted "unintended consequences."

The Bucket

Late-breaking items and briefs from Ernst & Young, Charles Schwab, Scarborough, Symetra, MassMutual, Lincoln Financial, Fidelity and Jackson National.

New Income Solutions for Long Retirements

With the numbers of people over age 100 growing rapidly, there is an equally growing need for advisors to consider an array of retirement income solutions.

Why the Government Should Not Issue Annuities

Jeffrey Brown, Ph.D., disagrees with Henry T.C. Hu and Terrrance Odean's proposal for a government-sponsored, inflation-indexed individual annuity. The proposal was reported in last week's issue of RIJ.